I know someone who entered an IVA a couple of years ago, deliberately built up debt but hid tens of thousands of pounds in his girlfriends bank account. He had a company that went bust and he was banned from being a director for 7 years, but before then, he set up another company in his girlfriends name and carried on, wiping out all his business and personal debt whilst at the same time hiding all his money.
There is so much now he is buying a new house in cash, has bought another business to open separately and is bragging about it having 100's of thousands of pounds spare. All the while pretending he didn't live with anyone (despite them having a child together) and still not paying his debts off.
The question is, how is this legal and if it isn't, who is it reported to?
Legality depends on what exactly has been done and how. Moving money / assets around in this way is not uncommon and not, surprisingly, always illegal... morality is a different question. Depending upon what proof you might have you could report the matter to the IP running the IVA in the first instance or to Companies House with respect to the directorship issue.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Legality depends on what exactly has been done and how. Moving money / assets around in this way is not uncommon and not, surprisingly, always illegal... morality is a different question. Depending upon what proof you might have you could report the matter to the IP running the IVA in the first instance or to Companies House with respect to the directorship issue.
Thank you. It's not a morality issue, I know people he's ripped off.
Proof will literally be in the bank statements of the partner, which I assume the practitioner won't be able to get access to. Would the police be a better bet in your opinion?
