Failing to recognise that neither Insolvency Service nor Inland Revenue had any intention of delaying his discharge from bankruptcy, Llewellyn William Burchell in court proceeded to accuse them of assault and harassment, all part of a conspiracy. He accused the trial judge of bias. Despite making it hard for himself, Burchell was discharged from a bankruptcy which had run for a decade; all his own fault.
The High Court was told Burchell was bankrupted by Inland Revenue in 2011 on a $34,000 tax debt. It was his second bankruptcy. As a general rule, bankrupts are automatically discharged from bankruptcy after three years. The three years start running from the date a ‘statement of affairs’ is provided to Insolvency Service. In the form of a checklist, this sets out a bankrupt’s financial circumstances: assets and debts. Burchell never properly completed a statement of affairs following his 2011 bankruptcy. While acknowledging he owned property, he refused to provide details of what it was and where it was. In answer to a question seeking to establish levels of household income he answered a question about his spouse’s income with the retort: ‘none of your business.’ Personal details like IRD number were left out. He protested, without success, police seizure of motorcyles he owned, seized at Insolvency Service request.
Evidence was given that Burchell chose to pursue unsuccessful legal actions against both Insolvency Service and Inland Revenue rather than provide the full information required in his statement of affairs. Ten years later, the three year time clock for automatic discharge had yet to start ticking.
Burchell applied to the High Court for his discharge from bankruptcy. Associate judge Bell commented Burchell had failed to comply with Insolvency Act rules requiring public notice of any application for early discharge. Burchell alleged Insolvency Service had conspired with media outlets to block advertising.
When approving the discharge from his second bankruptcy effective May 2021, Judge Bell described Burchell as being aggressive and rude, short on social skills and harbouring groundless conspiracy theories. Burchell is unlikely to be much of a credit risk for the public, Judge Bell said. In insolvency law, the risk comes from beguiling rogues. Burchell is not one of them, he said.
re Burchell – High Court (21.05.21)
21.085