IVA rejection triggers bankruptcy for TV Secret Millionaire

Published: 3 September 2009 By MoneyhighStreet Staff 2 Comments
Updated: 4 September 2009

Chek Whyte, one of the Secret Millionaires appearing on the Channel 4 TV series, has been declared bankrupt after his IVA application was rejected.

Bankruptcy

Mr Whyte, who had built up his business and property empire without forming an incorporated company was unable to seek protection for his business through liquidation or receivership, after incurring debts of around £30m with a number of banks.

Having taken IVA advice, Whyte had proposed ways to make partial repayments of 31p for every pound owed to his creditors by applying for an IVA.

It appears, however, that a small group of creditors, including the HMRC, blocked this, forcing him to file for bankruptcy.

Comments

2 Responses to “IVA rejection triggers bankruptcy for TV Secret Millionaire”
  1. If he was able to make 31p in the pound offer in an IVA then im sure his creditors will be getting some return when he goes bankrupt through an IPA/IPO for 3 years. I wonder what is going to happen to his business because obviously the restrictions of bankruptcy wont allow him to be a director of a company while he is bankrupt. All is not bad i suppose, he could be automatically discharged within 12 months and at least he is not stuck with the 5 year IVA payments.

  2. MoneyhighStreet Staff says:

    Thanks for the comment, Martin.

    Apparently, Chek Whyte was running his business on a sole trader basis so the business debts are therefore his debts, which is one of the major reasons why he had to file for bankruptcy.

    It has been reported that he was operating as a sole trader because he had previously been disqualified as a company director through bankruptcy. This is reported here:

    http://www.thisisnottingham.co.uk/news/Secret-Millionaire-runs-cash/article-1153718-detail/article.html

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