A scaffolding director from Kenilworth in Warwickshire, have been banned for four years after “recklessly” spending £142,000 prior to bankruptcy to avoid paying creditors.
The director, Colin Gerrard Taylor ran Godiva Environmental Solutions Ltd, a scaffolding company based in Coventry.
The company ceased trading in May 2020 after suffering financial difficulties and was voluntarily wound up in June 2020.
Taylor, however, was liable for personal guarantees he had given against company debts but could not repay them. The scaffolder applied for his own bankruptcy in July 2020 declaring debts totalling more than £1.8m.
As Trustee of Taylor’s bankruptcy, the Official Receiver investigated the scaffolder’s affairs and found that, prior to his bankruptcy, Taylor made substantial cash withdrawals.
From February 2020 until his bankruptcy in July 2020, Taylor paid £77,500 to an unlicensed money lender, more than £60,000 was transferred to family members and he lost £5,000 gambling.
Following the investigation, Taylor signed a bankruptcy restriction undertaking acknowledging that he “entered into transactions, whilst insolvent, which were to the detriment of his creditors”.
The undertaking came into effect on 3 March 2021 and for four years he is subject to further restrictions, including “being banned from becoming a company director or managing a company and not borrowing more than £500 without informing the lender of his BRU”.
Karen Fox, deputy official receiver at the Insolvency Service, who conducted the investigation said: “Colin Taylor owed £1.8m at the time of his bankruptcy but despite this, he spent significant funds on family members, gambling and paying an illegal money lender.
“His reckless actions denied his creditors money he owed them. This type of behaviour is totally unacceptable and we will not hesitate to take further action against bankrupts who do not treat their creditors fairly.”