Can he go bankrupt to deny my claim.

jamie11

Hi All,

First time I've posted on this board.

I'm currently suing an ex-tenant for a considerable amount of unpaid rent, bailiff fees and costs. The man is not on his uppers, he's just dishonest.

My main question is if I get my court order for the unpaid rent and associated costs can this guy get out of paying by simply making himself bankrupt? (I know it's not really simple)

He owns a couple of other companies and a house and runs a £40K car.

Is there any way to forestall him using this tactic.

Thanks in advance for any tips.

giblet10

Couldn't you petition him for bankruptcy and then be treated as a preferential creditor?

jamie11

I thought that going bankrupt wiped out all your debts, obviously I'm wrong.

I know nothing about bankruptcy, is this something my lawyer should tell me about?

What if he starts transferring all his assets to his wife or similar?

Johno100

giblet10 wrote: »

Couldn't you petition him for bankruptcy and then be treated as a preferential creditor?

Only the petitioning creditors petition costs become preferential (assuming there is an eventual distribution to creditors) not the petition debt itself.

OP, if you think there is a danger he may petition for his own bankruptcy to avoid paying you then I would suggest, once you have obtained judgment you act as quickly as you can to enforce judgment. Personally even now I'd be making enquiries about the house he owns (is it in his name, subject to a mortgage etc.) and the car (HPI check to see if it is his and not on finance).

chasingfreedom

I would say yes he can go bankrupt to get out of paying but if he has assets in his name they would all be potentially lost so I agree with Johno100 you should try and find out who's name they are in now.

If he starts transferring things to the wifes name then tries to go bankrupt it will be obvious and he could be charged with fraud if they notice.

jamie11

Thanks guys.

Is there a simple way to find these things out?

I do know he owes a lot of money to various suppliers, I don't know how thoroughly they are chasing him though.

National_Debtline

jamie11 wrote: »

Thanks guys.

Is there a simple way to find these things out?

I do know he owes a lot of money to various suppliers, I don't know how thoroughly they are chasing him though.

Hi there

As you are already suing this person, then in the normal course of things, unless he is paying in full immediately he will be required by the court to declare any assets, savings etc. as well as his regular income and outgoings. For him to withhold information could be contempt of court.

If you were to seek security for your debt prior to his bankruptcy, that would go some way towards protecting your interest.

This fact sheet courtesy of our colleagues at Business Debtline gives you some idea of the enforcement options available to you if you successfully sue for the money you are owed:

https://www.businessdebtline.org/EW/factsheets/Pages/BDL04%20BDL%20EW%20Claims%20in%20the%20county%20court/Default.aspx

As for assets being transferred prior to a person's bankruptcy, such actions can be effectively "reversed" by the Official Receiver if it is deemed that the intention was to deprive that person's creditors.

Regards

Dennis
@natdebtline

jamie11

Thank you Dennis.