A man who has been made bankrupt four times has been handed a 14-year bankruptcy restriction, for obtaining credit without disclosing to his lenders he had been banned from doing so
The ban, which is one year below the maximum, follows an Insolvency Service investigation into the affairs of Fintan Noel Arrowsmith, from Sleaford. His previous bankruptcies were in 2003, as Fintan Mahgabhan; in 2005, as Fintan Noel Mahgabhan-Arrowsmith; in 2008, as Fintan Noel Arrowsmith; and in 2017, as Fintan Noel Arrowsmith.
During the period 2010 to 2017, Arrowsmith had traded as a horticulturist but ceased trading in April 2017 after the failure of his crop.
He stated his liabilities mostly related to stock obtained on credit from suppliers and in October 2017, he filed on his own bankruptcy petition, listing a deficiency of £39,374.
Arrowsmith was interviewed by the Official Receiver at which time he stated that he had traded as F Arrowsmith, Glebe Farm Nursery during the period 2010 to April 2017.
He further explained that in 2016 he had a significant loss of his perishable stock, which were uninsured as no underwriter was willing to insure him because of his bankruptcy history
The Insolvency Service investigation into his affairs confirmed that Arrowsmith had signed a bankruptcy restrictions undertaking (BRU) in November 2009, which was effective for 11 years to November 2020.
This meant that Arrowsmith had defied his bankruptcy restrictions and obtained a variety of stock and supplies, to the value of at least £24,549, from trade creditors on cash-on-delivery and credit terms.
The official receiver made enquiries with these trade creditors, all of whom confirmed Arrowsmith had not disclosed that he had been made bankrupt before obtaining credit and that they would not have extended credit had they been aware of this.
Arrowsmith has accepted a BRU which means he will not now be discharged from bankruptcy until 2032.
Gerard O’Hare, an official receiver at the Insolvency Service, said: ‘Where a bankrupt has acted contrary to restrictions placed upon him by insolvency law, by obtaining credit with fully disclosing his states, he should not expect to do so without consequences, particularly when others suffer financial loss as a result.
‘A bankruptcy restriction in these circumstances will serve to provide creditors with a degree of protection, and it will also act as a deterrent to the bankrupt not to act in a similar manner in the future.’
Report by Pat Sweet
