A Herefordshire plumber has had his bankruptcy extended for six years after he sold a van without the permission of the hire purchase finance company
Lee Palmer, 41, a plumber from Knapton, is limited to what credit he can access and cannot act as a company director without the permission of the court.
Palmer’s bankruptcy restriction undertaking (BRU) was appointed by the Office of the Adjudicator on 16 August 2021 and will last until 15 August 2027.
Palmer was declared bankrupt on 28 January 2021 before the official receiver was appointed as a Trustee.
While reviewing Palmer’s assets, the official receiver uncovered that 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 Palmer’s bankruptcy restrictions further because of the risk he posed to creditors.
Kevin Read, the official receiver, Insolvency Service 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 six-year ban should act as a deterrent to others considering abusing their creditors.’
