A Warwickshire man has had his bankruptcy extended for eight years, after he was found to have made a false insurance claim.
Warwickshire based Mohammed Shahjahan, 40 made an insurance claim in which he declared that he had been injured in a road traffic accident in November 2011.
In July 2014, the court decided that the insurance claim was false and Shahjahan was ordered to pay third-party costs.
A counter-claim was made by the insurance company and in September 2015, Shahjahan was ordered by the court to pay damages and further costs.
He failed to pay the interim payment, causing the insurance company to petition for his bankruptcy. A bankruptcy order was made against him on 13 January 2016.
The total liability to the insurance company is £51,870, which has materially contributed to Shahjahan’s deficiency in bankruptcy.
The undertaking given on 9 December 2016 means Shahjahan will be bound for eight years by the restrictions set out in insolvency law that a individual who is bankrupt is subject to until they are discharged from bankruptcy.
In addition, he cannot manage or control a company during this period without leave of the court.
Commenting on the case, Official Receiver at the Insolvency Services, Kevin Read, said:
“The Insolvency Service always looks very closely at individuals who demonstrate dishonesty and takes action where wrongdoing is uncovered.”
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