Bankrupt director spared jail
Official receiver investigation uncovers breach of insolvency law
A BANKRUPT DIRECTOR has been spared jail after his actions were declared detrimental to creditors.
Terence Hutchinson was investigated by an official receiver, a branch of the government body the Insolvency Service, for disposing of assets and failing to pass on the funds to creditors, a breach of insolvency law.
On 4 January 2010 Hutchinson, a director of Clean-It-Contracts, was made bankrupt with debts of more than £146,000. Between 20 October 2009 to 4 January 2010 he disposed of £58,540, knowing he would was likely to be made bankrupt. The funds from the sale of those assets, such as his house, should have been passed to creditors.
In court it was announced while Hutchinson awaited judgment on his bankruptcy petitions he spent nearly £22,000 on holidays, and a BMW X5.
He pleaded guilty and agreed his actions were to the detriment of his creditors and sentenced to four months in prison, suspended for 12 months. He must also complete 240 hours of community service.
