A plumber from Knapton has had his bankruptcy restrictions extended for six years after selling van without a finance company’s permission.
Lee Palmer was declared bankrupt on 28 January 2021 before the Official Receiver was appointed as Trustee.
While reviewing his assets, the Official Receiver uncovered that Palmer had bought a van on hire purchase but sold the vehicle without the permission of the hire purchase finance company.
The hire purchase meant the van wasn’t his property to sell and the finance company suffered a loss of over £16,000.
The Official Receiver sought to extend Palmer’s bankruptcy restrictions further because of the risk he posed to creditors.
Lee Palmer’s bankruptcy undertaking extends his restrictions for six years. This means he is limited to what credit he can access and cannot act as a company director without the permission of the court.
Kevin Read, the Official Receiver, said: "It is illegal to sell a vehicle with an outstanding finance agreement. Not only does the finance company lose out but the new owner could unknowingly be at risk of having their vehicle repossessed and losing money.
"Lee Palmer’s actions posed a risk to creditors and his six year ban should act as a deterrent to others considering abusing their creditors."
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