An estate agent who gambled and gave away part of his house whilst insolvent has been made subject to five years of bankruptcy restrictions.
Colin John Drummond, a bankrupt who previously traded in partnership with another as an estate agent based in Middlesbrough, was investigated by the Insolvency Service.
The investigation found that Drummond, who was insolvent at the time, sold a jointly- owned property to a family member in November 2008 for £25,200 below its actual value of £168,000. By doing so he prevented the money being available to pay his creditors to whom he owed over £290,000.
In August 2009, Drummond had entered into a formal Individual Voluntary Arrangement (IVA) with his creditors to make reduced payments to them. However, he failed to comply with the terms of his IVA, leading to its termination and resulting in his bankruptcy in 2010.
Drummond admitted gambling after the failure of his IVA, splashing out £10,970 and losing £7,285 of it after the bankruptcy petition had been presented against him.
Drummond even continued to gamble after his bankruptcy order was made, spending a further £2,000 of money that should have been paid to his creditors in bankruptcy.
Dave Elliott, Official Receiver at Stockton, said: “The Insolvency Service is sending out the message that people who are in financial difficulties should not waste money by gambling or valuable gifts before bankruptcy. Spare money should go to people who are owed money. Bankruptcy restrictions will provide protection for future creditors.”
The restrictions mean that Drummond must disclose his status if trying to borrow more than £500, and cannot be a director.
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