Sham trusts

Insolvency Litigation

Using the trustee in bankruptcy’s powers under the Insolvency Act we obtained a bankrupt’s emails from his former employer. 

Those emails included discussions with the trustee company operating an employee benefit trust into which the bankrupt had diverted significant funds.  As the trust was, on the face of it, entirely discretionary, the bankrupt claimed that it did not fall within his bankruptcy estate.  However, the emails obtained disclosed discussions between the bankrupt and the trustee which suggested that the discretion was not absolute, and that from the outset the trustee considered that the funds paid into the trust by the bankrupt in fact belonged to the bankrupt and/or that the trustee had a duty to obtain instructions from the bankrupt on the use of funds.

We used these emails to form the basis of a challenge to the trust which settled very quickly following a without prejudice meeting.

Insolvency Litigation Case Studies

Insolvency Litigation Case Studies

Challenge to divorce

Sham trusts

Trust or loan?

Challenge to former administrators’ fees

Director’s disqualification

Challenge to statutory demand

Freezing assets

Liquidators’ failure to adjudicate

Section 236 interviews and document requests

Out of court administration (no qualifying floating chargeholder)

Out of court administration (with qualifying floating chargeholder)

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