Bankrupt Burton man has restrictions extended

A former resident of Burton-on-Trent has had his bankruptcy restrictions extended by eight years after he failed to disclose £75,000 spent in months preceding his bankruptcy.

Grzegorz Kania, currently residing in Warsaw, applied for his own bankruptcy in September 2018 with liabilities of £37,000.

As part of his bankruptcy application, he was obliged to disclose any large purchases or transfers made in the five years prior to his bankruptcy.

He failed, however, to disclose to the Official Receiver that, in the six months leading up to his application, he had spent almost £75,000.

Grzegorz Kania purchased land in Poland for almost £25,000 in March 2018 but in the name of a connected person and not his own. Two months later, he also withdrew £50,000 from a successful personal injury claim and spent it on non-essential items.

When the Official Receiver investigated the bankrupt’s estate, these expenditures were brought to light.

Usually, bankruptcy restrictions are lifted after 12 months, but Kania’s actions were severe enough that the Official Receiver sought to extend them.

On 13 August 2019, the Secretary of State accepted an undertaking from Kania for a period of eight years. Effective from that date, he is subject to range of restrictions, including being unable to borrow more than £500 without telling a lender he is bankrupt and acting as a director of a company without the court’s permission.

Gerard O’Hare, Official Receiver for the Insolvency Service, said:

“Kania wilfully spent thousands of pounds in the months before declaring himself bankrupt rather than use it to pay his debts. Even though he failed to disclose this, the bankruptcy processes ensured these payments were brought to light.

“The bankruptcy regime is there to not only help people pay their debts but also to protect creditors’ interests. People applying for bankruptcy are therefore obliged to complete their application fully and honestly and those who do not can expect to have their restrictions extended for substantial periods.”

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