Bankruptcy restriction extended over £48k debt

A man who spent £48,000 on luxury items despite being insolvent, by allowing his bank account to be used fraudulently, has had his bankruptcy restrictions extended for eight years

Sharaz Iqbal, from Bradford, was unemployed when he gave his bank details to a third-party that he knew, who then paid into his account a cheque worth almost £55,000.

Despite being insolvent at the time, Iqbal went onto spend more than £48,000 of the money on luxury items. In a single-day, he shopped at exclusive stores, bought a high-end watch worth £10,000, a holiday for himself and his wife to Turkey, as well as £18,000-worth of euros.

The cheque was not honoured, however, and Iqbal’s account became overdrawn, leaving a debt of more than £48,000 to his bank as he had already bought the items.

A bankruptcy order was made against him due to the outstanding money owed to the bank and, Iqbal has now signed a bankruptcy restrictions undertaking further extending his bankruptcy restrictions for eight years to 2027.

Restrictions imposed on him include borrowing more than £500 without telling a lender he is bankrupt and acting as a director of a company without the court’s permission.

Gerard O’Hare, Official Receiver for the Insolvency Service, said: ‘Sharaz Iqbal, while insolvent, knowingly participated in the fraudulent use of his bank account. The eight-year undertaking should act as a deterrent to him and others from acting in the same way.’

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