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Richard Cole successfully represents the Official Receiver at a rare contested Bankruptcy Restriction Order application.

The Official Receiver applied for a BRO in circumstances where the Respondent, who was subject to a bankruptcy petition at the material time, disposed of a sizeable asset and spent the proceeds to the detriment of his creditors. 

Complicating features included whether the Respondent was in fact insolvent on a balance sheet basis at the time of the allegation and so whether the allegation could be made out; whether the bankruptcy petition was properly brought – annulment proceedings brought during the BRO proceedings had failed; whether the bankruptcy petition was in fact extant at the time of the disposal and dissipation and; the length of any proposed order.

Ultimately the Judge agreed with the Official Receiver that the Allegation was made out and that the order should be for a period of 7 years, drawing comparisons with the case law relied upon in Directors Disqualification Proceedings.

Richard was instructed by Claire Graham, Commercial Litigation Partner at DWF, and the Insolvency Service, in his capacity as Junior Counsel to the Crown.