August 6, 2024
By Kate Heaney
What happened?
After being declared bankrupt for a second time in March this year owing HMRC more than £750,000, Ms. Price has failed to co-operate fully with her Trustee in Bankruptcy.
A hearing was scheduled to take place last month in London after Ms Price had failed to attend a previous hearing, during which warnings were given that she may face arrest if further court hearings were unattended.
After her failure to attend court again, at the hearing Insolvency and Companies Court Judge Burton said:
“It is in my judgment necessary that the court issue a warrant for Ms Price’s arrest. She has no real excuse in failing to attend today’s hearing. The reason for her absence today is irrelevant.”
Ms Price was bailed hours after being held and is due to appear before a judge at the Royal Courts of Justice on Friday 16 August (BBC).
What is a Trustee in Bankruptcy?
A Trustee in Bankruptcy is the insolvency practitioner appointed to oversee the administration of the individual’s bankruptcy, ensuring that the bankrupt’s assets are identified, realised and distributed to creditors in accordance with the insolvency legislation.
A bankrupt has statutory obligations to the Trustee in Bankruptcy and must attend interview and co-operate fully, which includes providing all information and documents requested. Failure to attend at Court having been ordered to do so can be considered contempt of court and/or result in arrest warrants being issued.
Seeking legal advice
Our insolvency team has recently acted in a matter whereby a warrant for arrest of a bankrupt was successfully obtained. That individual had failed to attend court and co-operate with his Trustee in Bankruptcy on several occasions. The warrant is now active with UK Border Force Control and the bankrupt will be arrested during any attempt to leave or return to the country. The likelihood is that Ms Price will face the same.
Facing financial difficulty or any kind of insolvency process can be daunting; and navigating insolvency procedures can be complex. Our insolvency lawyers have an excellent reputation for advising and working with insolvency practitioners, businesses, directors, individuals and creditors.
Contact us now on 02920 829 100 or via our Contact Form to see how we can help.
