“Advantage Becker” as he obtains his discharge from bankruptcy
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“Advantage Becker” - obtains bankruptcy discharge
Boris Becker, declared bankrupt in 2017 with creditors of over £50m, was famously found guilty of four offences under the Insolvency Act 1986 (“the Act”). This included failure to disclose and removal of significant assets. Under the spotlight of international media, he was sentenced to a prison term and later deported from the UK.
As specified under Section 279 of the Act, the standard period under which a bankrupt remains subject to bankruptcy restrictions is 12 months. Due to Becker’s conduct, his discharge from bankruptcy was suspended indefinitely. Only recently has he applied to lift this suspension.
Almost seven years after the bankruptcy order was issued, the court granted Becker his discharge, commenting; “on the spectrum of bankrupts who range from ‘as difficult as possible and doing everything to frustrate the trustee’s inquiries’ to ‘cooperative, providing information and delivering up assets’, Becker clearly falls on the right side of the line”.
Becker initially failed to comply with his legal obligations, resulting in the extension of bankruptcy restrictions to prevent him from causing further harm to his creditors. He agreed to a Bankruptcy Restrictions Undertaking in 2019 which was set to continue until 2031.
His discharge was suspended conditionally upon the fulfilment of certain undisclosed requirements. On lifting the suspension, the court accepted Becker’s evidence that he had done all that he could reasonably do to fulfil his obligations to his bankruptcy trustees.
The Becker case is a cautionary tale for bankrupts who believe that non-disclosure, removal, and concealment of assets from their trustees can be achieved without profound consequences.
This case also highlights the importance of the official receiver and trustees’ statutory powers and measures such as Bankruptcy Restriction Orders and Undertakings which can be imposed on dishonest or culpable bankrupts. Furthermore, the ability to suspend a bankrupt’s automatic discharge should they fail to comply with their obligations.
These measures help to ensure creditors are protected and that their interests are prejudiced no further, they assist in the recovery of assets and hopefully result in a better distribution to creditors.
Lack of cooperation from a bankrupt and their advisors immediately causes issues for bankruptcy trustees. It drives up costs by forcing the trustees to undertake investigations and enquiries, incurs legal costs and delays the recovery of assets. Creditors suffer as a result of this non-compliance and the punishments that are dished out should be publicised and function as a serious deterrent.
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