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It is unlawful to sell a vehicle with an outstanding finance agreement.

Overview: Plumber’s Bankruptcy Restrictions Extended For Abusing Finance

Lee Palmer’s bankruptcy restrictions extended for 6 years after selling van without finance company’s permission.

Lee John Palmer (41), a plumber from Knapton, was declared bankrupt on 28 January 2021 before the Official Receiver was appointed as Trustee.

While reviewing Lee Palmer’s assets, the Official Receiver uncovered that Lee 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 Lee Palmer’s bankruptcy restrictions further because of the risk he posed to creditors.

Lee Palmer’s bankruptcy undertaking extends his restrictions for 6 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 6-year ban should act as a deterrent to others considering abusing their creditors.

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Disclaimer: Plumber’s Bankruptcy Restrictions Extended For Abusing Finance

This page: Plumber’s Bankruptcy Restrictions Extended For Abusing Finance is not legal advice and should not be relied upon as such. This article is provided for information purposes only. You can Contact Us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.

This page contains public sector information licensed under the Open Government Licence v3.0.

Elliot Green

Licensed Insolvency Practitioner & Chartered Accountant. We Know Insolvency Inside Out.