The Great Insolvency Scam

Name: The Great Insolvency Scam
Start: 2021-06-24
End: 2021-06-24

The Great Insolvency Scam organized by The Transparency Task Force

Online

We believe that there is a mountain of evidence suggesting that the insolvency rules are being weaponized, enabling a highly lucrative scam that is enriching the few, at the expense of the many.

We want to shine a bright light on this issue, in the firm belief that “sunlight is the best disinfectant” and in the hope that by doing so we can help to drive the positive, progressive and purposeful reform that is so desperately needed.

We believe that the evidence suggests that this scam is being perpetrated by white collar “professionals” who target wealthy, SOLVENT people and seek to take control over their assets by fabricating a bankruptcy.

Weaponizing the insolvency rules creates a system whereby the bankrupt is “padlocked” into a state of helplessness and inaction, paralysed by the insolvency process and unable to defend their interests. As a consequence they are unable to get recourse through the Courts and can only watch the systematic stripping of assets from their personal estates. Investigation, analysis and reports about this issue have shed some light on the disgraceful and abhorrent behaviour of some insolvency practitioners, solicitors, barristers, accountants and Judges; but the truth could be even worse than that.

Perhaps what we know is just the tip of the iceberg!

There are many angry and disappointed victims yearning for justice. They speak of how their lives have been ruined and their personal wealth obliterated.

Personal bankruptcy of individuals by financial institutions has become common practice because it is easy to carry out, requires minimal grounds, is highly profitable, impossible to fight and victims are no match for their persecutors.

In its simplest guise, the scam works whereby the insolvency laws enable a creditor to apply to the court to have a debtor placed in compulsory liquidation if they cannot repay the money owed. Loans have small print that typically enables them to be withdrawn given notice—usually just 30 days. Arranging new loan facilities within such a timeframe when the lender has put a black mark against the borrower, available to the finance industry, is a sure-fire way to ensure no one else will cover the debt.

The insolvency industry has no conscience regarding fulfilling orders of the court and requiring “officers of the court” (insolvency practitioners, lawyers and judges) to follow due process. It is never “personal”, only business, in the eyes of the law and regulators.

Extenuating circumstances, vulnerability, ignorance of laws etc. are no defence, with claims such as these being made by the perpetrators:

“You knew what you were doing when you borrowed the money and the circumstances under which it was to be repaid.”
“We are fully entitled to safeguard our loans as long as we follow regulations”.

Many people believe that the UK is a country that always protects members of the establishment before members of the public. There is no constitution, bill of human rights or right to an adequate defence for those seen to have means. There is no political appetite or votes in helping them; and there certainly isn’t a culture of believing that banks have a duty of care to their clients and customers.

This is reinforced by the reality that there are no agencies to obtain support. Neither the police, the FCA, the Insolvency Service, the SFO or National Crime Agency, SRA or any other body that could help, has a requirement to do so. It is seen only as a civil matter for which legal representation is the only answer.

How to change a system that has been developed over hundreds of years requires political awareness and intervention. It is especially difficult if the victims are seen as having the resources and capabilities “ordinary” people lack.

The question is this:

“What will make a systemic difference moving forward?”

Perhaps the answer is something that amounts to a collective class action against all the bad actors involved in the widespread frauds that are taking place.

This is going to be an insightful and hard-hitting event designed to help bring the truth to the surface; a truth that is so abhorrent it’s difficult to believe that it could be happening in the UK.