Insider Media Limited

Builders' merchant Travis Perkins has been left almost £23,000 out of pocket after chasing debts from a bankrupt company owner, the Insolvency Service said.

The agency said the Northampton company pursued Terence David James Ennis' liquated company Terlis Construction Limited for a total of £22,775.60.

After an investigation by The Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills (BIS), Ennis was jailed for two months at Chelmsford Magistrates Court. He pleaded guilty to two counts of removing property after a judgement for the payment of the money had been obtained.

As a result of providing a personal guarantee, Ennis was pursued by Travis Perkins which was owed the money.

The court heard that on 5 December 2008, the sale of Ennis' jointly owned home was completed and his share of the proceeds, £27,590.55, were paid into his bank account.

Ennis immediately withdrew close to £5,000 and on the following day, withdrew a further £15,000. He continued to remove funds to such an extent that, by the date of his bankruptcy on 8 January 2009, only £547.70 remained of the sale proceeds.

Nothing was paid to Travis Perkins, the Insolvency Service said.

DCIO Ian West, from the Department for Business Innovation and Skills, said: "It is unacceptable for people in business or anyone else to cheat their creditors by fraudulent removal of funds.

"BIS will do everything in its power to prosecute those who like Mr Ennis decide to fraudulently evade their liabilities to creditors."