People often ask why anyone in their right mind would do bankruptcy work. It's a question I often ask myself, particularly after a bad day in court. Bankruptcy is usually invasive and personal, so the challenge while seizing someone's assets is to remain dispassionate and professional in the face of insults, threats or just plain despair. Issuing possession proceedings against a property may mean evicting not just the bankrupt, but his or her family. Personal feelings must be put to one side as, ultimately, the trustee's job is to realise assets for the benefit of creditors.
Concealing assets
The days of simply dealing with a single prime asset, usually the matrimonial home, are disappearing fast. We see an increasing number of cases involving complex fraud across multiple overseas jurisdictions, where the sole intention has been to hide assets from the trustee. We have dealt with cases where individuals have bought properties all over the world. As a result, we now regularly seek to trace and recover assets from overseas. Not only do we have to cope with foreign languages, but we need to understand entirely different legal systems, often resulting in more complicated and prolonged cases than in the UK.
Unfortunately, many bankrupts have become more knowledgeable and devious about concealing their assets, often moving them around in an attempt to thwart tracing and seizure. It can feel like a game of cat and mouse when we try to second guess the bankrupt and remain one step ahead to prevent concealment.
Legal powers
Trustees do have powerful weapons at their disposal under the Insolvency Act 1986, although certain provisions are surprisingly underused. Some powers, regarded by many as somewhat draconian, are frequently overlooked when they could help the trustee to recover assets and bring an errant bankrupt to heel. The Act also gives the trustee power to seek suspension of a bankrupt's discharge for non-cooperation or failing to comply with his or her obligations.
Trustees can obtain a warrant to search and seize property in the bankrupt's estate or to seize any books, papers or records which are in the bankrupt's possession or under his or her control. This is a useful tool for obtaining information about assets which the bankrupt has failed to disclose and can be used in conjunction with the humble, but extremely efficient, power to redirect the post.
Warrant timing
If multiple properties are involved, it is important to try to preserve assets and information at the various locations. For this reason, we always execute all warrants at the same time to ensure the best possible outcome. This can sometimes resemble a dawn raid from The Sweeney, so it requires careful co-ordination of support staff, police and the High Court's Tipstaff.
Remaining professional
As you might expect, the feelings and emotions of a bankrupt can run high, and the challenge for us is to remain focused on the job in hand and never give up. Perseverance and professionalism in demanding circumstances are key to success.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
