A SCAFFOLDER has been banned for four years after spending £142,000 prior to bankruptcy to avoid paying creditors.
Colin Gerrard Taylor, 47, from Kenilworth in Warwickshire, was the director of Coventry-based Godiva Environmental Solutions Ltd.
The company ceased trading in May 2020 after suffering financial difficulties and was voluntarily wound up in June 2020.
Taylor, however, was liable for personal guarantees he had given against company debts but could not repay them. The scaffolder applied for his own bankruptcy in July 2020 declaring debts totalling more than £1.8million.
As Trustee of Taylor’s bankruptcy, the Official Receiver investigated the scaffolder’s affairs and found that, prior to his bankruptcy, he made substantial cash withdrawals.
From February 2020 until his bankruptcy in July 2020, Colin Taylor paid £77,500 to an unlicensed money lender, more than £60,000 was transferred to family members and he lost £5,000 gambling.
Bankrupts are usually put under restrictions for 12 months. But due to Taylor’s spending prior to his bankruptcy, the Official Receiver determined the scaffolder was a risk to future creditors and sought to apply for additional restrictions.
Following the investigation, Taylor signed a bankruptcy restriction undertaking, acknowledging he entered into transactions, whilst insolvent, which were to the detriment of his creditors.
The undertaking came into effect on March 3, 2021, and for four years he is subject to further restrictions, including being banned from becoming a company director or managing a company and not borrowing more than £500 without informing the lender of his BRU.
Karen Fox, Deputy Official Receiver at the Insolvency Service, said: “Colin Taylor owed £1.8million at the time of his bankruptcy but despite this, he spent significant funds on family members, gambling and paying an illegal money lender.
“His reckless actions denied his creditors money he owed them. This type of behaviour is totally unacceptable and we will not hesitate to take further action against bankrupts who do not treat their creditors fairly.”
Anyone with information to assist with the tracing and recovery of Taylor’s assets should contact the appointed trustee: Gilbert John Lemon of Smith & Williamson LLP, Portwall Place, Portwall Lane, Bristol, BS1 6NA or 0117 376 2000.