Attorney Peniston is declared bankrupt
Attorney Llewellyn Peniston has been declared bankrupt after he fell behind with payments.
The Supreme Court of Bermuda has this week issued a bankruptcy order declaring Mr Peniston bankrupt.
The former UBP Senator will now have to hand over any assets of value, such as his home, income and possessions, to help pay off his debts.
The court made him bankrupt after he failed to keep up with an agreed payment plan and built up significant arrears.
A trustee will now be appointed to investigate Mr Peniston’s financial affairs and subject him to certain restrictions.
The trustee will manage Mr Peniston’s payments through the sale and disposal of his assets. It is also expected that Mr Peniston will have to hand over his bank and credit cards.
The Supreme Court of Bermuda bankruptcy notice appeared in The Royal Gazette on Monday, under the Bankruptcy Act 1989.
It states that it is a notice of order adjudging the debtor (Mr Peniston) bankrupt. The petition was filed in December 1992.
The attorneys for the Official Receiver are Marshall, Diel and Myers Solicitors of Church Street, Hamilton.
Kevin Turner, senior associate at Marshall, Diel and Myers, said the bankruptcy relates to an arrangement “to make certain payments of certain amounts”.
He said: “Mr Peniston failed to live up to the scheme and failed to make the payments.
“He did make certain payments, but he was frequently late and it became time to take the next step. As of right now he is in default of the payment scheme, he is in arrears.
“As a result of this the Official Receiver made this adjudication. The Chief Justice is in agreement.”
Mr Turner would not disclose the exact amount of Mr Peniston’s arrears but did say: “It’s not an insignificant amount.”
He explained: “What happens now is that the creditors are waiting.
“A trustee for the bankruptcy is appointed. They then take in all of his assets and distribute them to the creditors.
“Depending on how it goes, he could be discharged from his debts after a period of time.”
The bankruptcy order comes after Mr Peniston was banned from practising anything other than criminal law for two years from December 2010. Bermuda Bar Association, the governing body for the Island’s legal profession, imposed the restriction after an investigation into complaints about Mr Peniston’s financial activities.
In January 2007 the Bar Association’s disciplinary panel gave Mr Peniston a one-year suspension from all work involving real estate law after he “acted in a verbally abusive and intimidating manner” and “failed to abide by the terms of his professional undertaking”.
In December 2008, he was suspended for a month after admitting failing to produce his accounts for the Association.
In August of that year, a Supreme Court judge told Mr Peniston he could end up behind bars if he didn’t pay two former clients almost $10,500 owing to them.
He paid off the debt to Terry Philpott and Desmond Richardson, who brought a civil action against him, a day after the judge’s warning. It was said that he could have to fork out thousands of dollars more in legal costs.
Mr Peniston did not respond to requests for comment.
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