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Ocean rower handed bankruptcy restriction 12 November 2010

A property developer who hit headlines this year for his solo rowing race around the world has been handed a five year bankruptcy restriction after operating “with a cynical disregard for the insolvency regime.”.

Simon Chalk, who also owned a night club, has been given a five year bankruptcy restriction order at Torquay and Newton Abbot County Court following an investigation by The Insolvency Service. 

The Insolvency Service said that Chalk had dishonestly obtained a secured loan of over £200,000, had been involved in the management of a limited company while bankrupt and had failed to declare an asset worth £45,000 to the Official Receiver.

Chalk, who was made bankrupt on 8 December 2008, obtained a £229,975

secured loan on his property after he found out that HM Land Registry had

failed to register a previous charge over the property. Chalk failed to pay the 

loan proceeds to the first charge holder, leaving HMLR to lose £300,000.

Chalk also  failed to disclose an asset of £45,000 in his proposals for an Individual Voluntary Arrangement (IVA), which were accepted by his creditors on 22 January 2007.  After the Bankruptcy Order was made against him on 08 December 2008, Chalk failed to disclose the same asset to the Official Receiver.  

Graham Horne, deputy inspector general for Official Receiver Services said: “This case has been challenged at every opportunity.  However the Official Receiver, on behalf of The Insolvency Service, was able to demonstrate to the court that Mr Chalk operated with a cynical disregard for the insolvency regime, from which he was benefiting, and for the creditors whom he deceived.  The personal insolvency regime exists to provide relief to those who cannot pay their debts but as Mr Chalk has found out The Insolvency Service, in the public interest, will seek sanctions against those who abuse the system.”

Stephen Speed, chief executive of The Insolvency Service said: “Chalk wanted to benefit from the debt relief arrangements offered by the insolvency regime but was not prepared to accept the restrictions all bankrupts must abide by as part of that arrangement.  The Bankruptcy Restrictions Order Mr Chalk is now subject to is a serious sanction and breeching it is a criminal offence which can result in a custodial sentence.” 

 

 

 

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