Tom’s client was faced with liability orders for unpaid council tax across a large portfolio of tenanted properties. Having failed to participate in the proceedings which brought about the liability orders, and having later ignored statutory demands served off the back of them, Tom was faced with opposing a petition for his client’s bankruptcy.
Tom had previously advised that a prompt application to set aside the liability orders was essential, but this had not been achieved by the date of the hearing. Against all odds, Tom was able to achieve dismissal of the petition. Arguing reliance on s.271 Insolvency Act 1986, Tom successfully persuaded the Court that a bankruptcy order was inappropriate in circumstances where the client was prepared to sell a property and give security for the debts owed.
Despite not having made such an offer before, the Court was satisfied that the Petitioning Creditor’s position was protected, and the petition was dismissed.
Tom is an expert in all areas of insolvency and can advise on all steps in the process of both company insolvency and personal bankruptcy – his profile can be found here.