Bankrupt man, 74, spent £60k from house sale instead of paying creditors
A bankrupt man from Lancaster has been given a six month suspended jail sentence after spending £59,000 from a house sale which should have gone towards paying his creditors.
Harvey Tudor, 74, of Sycamore Road in Brookhouse, near Lancaster, appeared at Preston Magistrates’ Court on Wednesday January 6 before District Judge Garland.
He was sentenced to six months' imprisonment, suspended for 18 months, as well as a three-month curfew and a contribution to prosecution costs of £2,200.
The court heard that Harvey Tudor was made bankrupt in January 2014, owing creditors just over £52,000.
Bankruptcy restrictions are normally lifted after 12 months but Harvey Tudor failed to cooperate with the Official Receiver and his discharge from bankruptcy was suspended indefinitely.
Whilst still a bankrupt, in February 2015 Harvey Tudor sold a property in Kirkby Stephen, Cumbria, that he jointly owned with his wife.
Harvey Tudor split the proceeds, receiving just under £59,000, but failed to inform the Official Receiver of this amount as he was obliged to do before spending the sum over the course of the next two years.
On November 6 2020 at Lancaster Magistrates’ Court, Harvey Tudor pleaded guilty to one count of failing to declare property whilst bankrupt.
District Judge Garland told Harvey Tudor that it was his duty to report the house sale and not doing so was a “big mistake”.
Julie Barnes, chief investigator at the Insolvency Service, said: "Harvey Tudor knew his legal obligations when he was made bankrupt. Despite this, he tried to hide the proceeds from the sale of his house from his trustees to avoid repaying his creditors.
"This case shows that we will not hesitate to take these matters to the criminal courts where it is appropriate to do so, and this sentence should act as a warning to others who try to hide their assets while bankrupt."