This is a particularly relevant bankruptcy restriction undertaking case due to the fact that the circumstances of the case are unlikely to be unique to Mr Williams only. In November of 2006 Mr Thompson made a false and misleading statement in order to obtain a mortgage. The Official Receiver alleged that this amounted to fraud or fraudulent breach of trust. Mr Thompson accepted these allegations and his bankruptcy restrictions were prolonged for a period of eight years.
Mr Thompson applied to a mortgage company claiming that he was a self employed owner of a plumbing business and that he had made a profit of £55,000 in the previous tax year. He was unable to keep up the repayments and the property was repossessed. The mortgage was approximately £172,000 and the sale of the property gave rise to a shortfall of £91,000 to the mortgage company and a liability to a second secured lender of approximately £15,000.
It is worth noting that in serious cases of fraud that you should expect the length of the bankruptcy restrictions order or undertaking to be closer to the 15 year mark. You may also attract a criminal liability punishable by imprisonment, fine or both.
As a separate warning it is worth noting that debts incurred by way of fraud or fraudulent breach of trust cannot be discharged through bankruptcy and as such will remain payable after your discharge. It is unclear whether this was in fact the case with Mr Thompson. There are a number of legal matters that need consideration in these instances.
If you require help understanding any of the matters discussed here please feel free to call the bankruptcy helpline. You may also like to look at the consequences of bankruptcy page.
