An English-speaking bankruptcy lawyer has won $150 million in the UK for the debt relief she had to pay as a result of her bankruptcy.
The court was told that Sue Ann Blyth, 62, was the subject of a personal bankruptcy when she went bankrupt in 2007.
The case was heard at the High Court in London, but the case was adjourned until January, as she needed to deal with a family matter.
Her legal team argued that she had been the victim of a “malicious and vindictive” campaign to seize her assets.
The High Court heard that Ms Blythen was ordered by the bankruptcy judge in her personal bankruptcy to pay £5,000 of her £120,000 mortgage and the cost of her house, but she chose not to pay.
Ms Blytthen was not present at the hearing, but her lawyer was in court.
Mr Justice Peter Taylor said: “Ms Bylth has been the subject, through the courts, of an attempt to take advantage of her by the insolvent creditor, the Bankrupt Enquiry Commission, in an attempt, to deprive her of a fundamental right, the right to a free and private settlement of debts.”
The court has now concluded that the Bankrupcy Act 2010 did not allow her to pay the amount she had originally agreed to pay and that she has been and remains subject to the Act and the rules of the courts.
“The court also heard that Mr Blytch’s daughter had to travel to the court, which meant he could not attend.
The judge said he had to decide if the court should award Ms Byltthen £15,000 in damages, and said: “(The) damage award was an extreme and unreasonable award.”
It has not been shown that there was any malice on her part.”
In the judgment, Mr Taylor said the bankrupt estate could recover £20,000 per annum, but it was not known if that would be enough to cover the debt.
The Court of Appeal said the judge had to make a decision on whether the court would be satisfied that Ms L was the true victim of the Bankrupted Enquiries Commission.
Mr Blyts’ daughter, who had no role in the case, is now a bankruptcy trustee, and her legal team said they were pleased.
A spokeswoman for the Bank of England said: “[This] is an example of how our bankruptcy system can work in a way that is fair and equitable for everyone, while protecting the interests of the debtor and those who have suffered from the bankruptcy.”
We welcome the decision.