Four-time bankrupt from Swaton hit with fourteen-year restriction

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A four-time bankrupt has been handed a 14-year bankruptcy restriction for obtaining credit without disclosing to his lenders he had been banned from doing so.

The ban, from February 7, 2018 to February 6, 2032, one year short of the maximum, follows an investigation into the affairs of Fintan Noel Arrowsmith.

According to the Government’s Insolvency Service, during the period 2010 to 2017, Fintan Arrowsmith, 47, had traded as a horticulturist at Glebe Farm Nursery of Swaton Fen, but ceased trading in April 2017 after the failure of his crop.

He stated his liabilities mostly related to stock obtained on credit from suppliers and on October 18, 2017, Arrowsmith filed on his own bankruptcy petition, listing a deficiency of £39,374.

Fintan Arrowsmith was interviewed by the Official Receiver at which time he stated that he had traded as F. Arrowsmith, Glebe Farm Nursery during the period 2010 to April 2017.

He further explained that in 2016 he had a significant loss of his perishable stock, which were uninsured as no underwriter was willing to insure him because of his bankruptcy history.

The Insolvency Service investigation into his affairs confirmed that Arrowsmith had signed an out-of-court Bankruptcy Restrictions Undertaking (BRU) on November 17, 2009, which was accepted by the Secretary of State and was effective for 11 years to November 2020.

This meant that Arrowsmith had defied his bankruptcy restrictions and obtained a variety of stock and supplies, to the value of at least £24,549, from trade creditors on cash-on-delivery and credit terms.

The Official Receiver made enquiries with these trade creditors, all confirmed Arrowsmith had not disclosed that he had been made bankrupt before obtaining credit and that they would not have extended credit to Mr Arrowsmith had they been aware of this.

On February 7, 2018, a bankruptcy restrictions order (BRO) was made by the court, as directed by the Secretary of State for Business, Energy and Industrial Strategy, against Arrowsmith, ordering him to be bound for 14 years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until 2032.

Arrowsmith previous bankruptcies were: in 2003 – as Fintan Mahgabhan; in 2005 – as Fintan Noel Mahgabhan-Arrowsmith; in 2008 – as Fintan Noel Arrowsmith and in 2017 – as Fintan Noel Arrowsmith.

The Insolvency Service is an executive agency sponsored by the Department for Business, Energy and Industrial Strategy which administers and enforces the insolvency regime.

Gerard O’Hare, an Official Receiver at the Insolvency Service, said: “Where a bankrupt has acted contrary to restrictions placed upon him by insolvency law, by obtaining credit with fully disclosing his states, he should not expect to do so without consequences, particularly when others suffer financial loss as a result.

“A bankruptcy restriction in these circumstances will serve to provide creditors with a degree of protection, and it will also act as a deterrent to the bankrupt not to act in a similar manner in the future.”