Colin Taylor from Kenilworth was the director of Godiva Environmental Solutions, which ceased trading last May after suffering financial difficulties and was voluntarily wound up in June 2020.
Taylor, aged 47, was liable for personal guarantees he had given against company debts but could not repay them.
The scaffolder applied for his own bankruptcy in July declaring debts totalling more than £1.8m.
The Official Receiver investigated the scaffolder’s affairs and found that, prior to his bankruptcy, Taylor made substantial cash withdrawals.
From February 2020 until his bankruptcy, Taylor paid £77,500 to an unlicensed money lender, more than £60,000 was transferred to family members and he lost £5,000 gambling.
Bankrupts are usually put under restrictions for 12 months. But due to Taylor’s spending prior to his bankruptcy, the Official Receiver determined that the scaffolder was a risk to future creditors and sought to apply for additional restrictions.
Following the investigation, Taylor signed a bankruptcy restriction undertaking acknowledging that he entered into transactions, while insolvent, which were to the detriment of his creditors.
The undertaking came into effect on 3 March 2021 and for four years he is subject to further restrictions, including being banned from becoming a company director or managing a company.
Karen Fox, Deputy Official Receiver at the Insolvency Service, said: “Colin Taylor owed £1.8m at the time of his bankruptcy but despite this, he spent significant funds on family members, gambling and paying an illegal money lender.
“His reckless actions denied his creditors money he owed them. This type of behaviour is totally unacceptable and we will not hesitate to take further action against bankrupts who do not treat their creditors fairly.”