Obtaining credit without disclosure of status
Obtaining credit without disclosure of status

The following Corporate Crime guidance note provides comprehensive and up to date legal information covering:

  • Obtaining credit without disclosure of status
  • Obtaining credit—engaging in business
  • Proceedings under section 360
  • Elements of the offence of obtaining credit
  • Victim's knowledge not relevant to liability
  • Sentencing for the offence of obtaining credit without disclosing status

Obtaining credit—engaging in business

A bankrupt is guilty of an offence if:

  1. either alone, or jointly with another person, they obtain credit at or above the prescribed amount without 'giving the person from whom he obtains it the relevant information about his status' ie that he is an undischarged bankrupt (or that their estate has been sequestered in Scotland) and that they have not been discharged, or

  2. they engage (either directly or indirectly) in any business under a name other than that in which they were adjudged bankrupt without disclosing to all persons with whom they enter into any business transaction the name in which they were adjudged bankrupt

Obtaining credit includes both:

  1. obtaining goods on hire purchase or conditional sale terms, and

  2. being paid in advance for the supply of goods or services

The prescribed amount is currently £500. This limit governs the aggregate of the credit obtained and it cannot be circumvented by ensuring that no one transaction exceeds the limit.

Offences under section 360 of the Insolvency Act 1986 (IA 1986) are either way offences.

Proceedings under section 360

Proceedings for an offence under IA 1986, s 354 may only be instituted except by the Secretary of State (usually via Insolvency Service Criminal Enforcement Team (ISCET)) or with consent of the Director of Public Prosecutions (DPP).

Proceedings for an