Property developer Ken Campbell avoids bankruptcy with IVA

The property developer Ken Campbell has reportedly applied for an individual voluntary arrangement (IVA) in order to stave off bankruptcy.

Whilst the full extent of Campbell’s debt management problems has not been revealed, his financial situation is believed to be so dire that he is fighting off bankruptcy. In order to do so, Campbell has taken the IVA option, in which a portion of his debt will be written off and his outstanding debt will be gradually repaid.

As part of the agreement, Campbell will see 63 per cent of his debt written off as he has agreed to pay his creditors 37p for every pound he owes them, provided of course that they accept his offer.

According to BBC News, a letter has been sent to Campbell’s creditors, in which it states that if they reject the offer and the property developer goes through bankruptcy, they may end up with nothing. Also included in the letter is a proposal to “wind down” Campbell’s construction business, which should help the debtor recover some funds. The creditors are set to vote on Campbell’s offer at the end of the month.

Campbell is perhaps best known for lending £25,000 to controversial Northern Ireland Unionist politician and First Minister’s wife Iris Robinson during the scandal of her extra-marital affair with a 19-year-old man.

The loan was reportedly sought so that Robinson could help her young paramour launch a business venture. However, it is not believed that this loan has contributed in any way to Campbell’s financial problems, as his solicitor has confirmed that most of the debt has since been repaid.

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Bankrupt property developer jailed for hiding £143k

A property developer has been jailed following the discovery of £143,000 which he hoarded when he was declared bankrupt.

An investigation by The Insolvency Service led to their discovery that Giles Nicolas Gilbey, a 47 year old builder and property developer from Peterborough removed £143,000 from his home which would have equated to his main asset. Mr Gilbey pleaded guilty before Northampton Crown Court to removing the share of the sale of his family home in cash. He then failed to give a satisfactory explanation of what happened to the money to the Official Receiver even though he was legally required to do so. Stephen Speed, Chief Executive of The Insolvency Service, said: “people genuinely struggling with debt who want to benefit from the debt relief arrangements offered by the insolvency regime must be prepared to declare all of their assets or face the penalty imposed on them. “It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor.”Ian West, Deputy Chief Investigation Officer with the Department for Business, Innovation and Skills said: “Mr Gilbey’s prison sentence sends a clear message to bankrupts who attempt to put their financial assets beyond the reach of their creditors. The Insolvency Service and the Department for Business will investigate and take robust action when we find evidence of funds being hidden to the detriment of creditors.” In the prosecution brought by The Department of Business, Innovation and Skills, Mr Gilbey did not contest two charges of removing property and one of failing to provide a satisfactory explanation for a loss. Mr Gilbey, who had been pursued for unpaid debts for a number of years before he was made bankrupt, was well aware that any profits from the sale of his property should have been paid to his creditors. As a result Mr Gilbey was sentenced to serve six months imprisonment for each of the three charges, which will run concurrently. He will therefore serve a total of 18 months in prison. 
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Posted in: bankrupt,developer,Hiding,jailed,Property