Bankrupt lawyer Hall must meet creditors
Bankrupt barrister Julian Hall has been ordered to meet his creditors today to make arrangements to repay them.
Mr. Hall was officially declared bankrupt in January -- which prohibits him from practising as a barrister -- with debts of $1.9 million and assets of $135,000.
Under the Bankruptcy Act, Mr. Hall is required to attend a creditors meeting so that arrangements can be made to assess claims made against his estate and to disburse his assets.
Mr. Hall can be fined or even imprisoned if he does not attend the meeting, although these penalties are very rarely invoked.
The former Progressive Labour Party MP was ordered to pay a former client, Canadian widow Betty Lorraine McMahon, $1.6 million plus seven percent interest in December 1997.
Attempts to secure payment have dragged on for more than two years and in January this year Mr. Hall was ordered to provide the Supreme Court with a detailed statement of his financial affairs.
Mrs McMahon's lawyer Alan Dunch applied to have Mr. Hall declared bankrupt and accused him of "consistently attempting to avoid his financial responsibilities''.
Puisne Judge Charles-Etta Simmons granted the application and declared him bankrupt, saying Mr. Hall's "purported'' statement of affairs did not even "remotely approximate'' to his promise in December to provide a full statement of affairs.
Mr. Hall's creditors will get the opportunity to appoint a Trustee in Bankruptcy to replace the Official Receiver and to appoint a committee to supervise the bankruptcy.
The Official Receiver now has control of Mr. Hall's assets and will determine what money can be repaid if there is any cash left in his estate.
Creditors were required to submit a proof of debt outlining their claim against Mr. Hall by yesterday. It will be up to the Official Receiver, or Trustee in Bankruptcy, to accept or reject the claims.
David Addington, Mr. Dunch's litigation manager, said yesterday: "The Official Receiver will know the identity of the creditors which will be important because voting (for a trustee or committee) is based on number and value.
"The business of the meeting will be to appoint a Trustee if the creditors wish it and in the absence of the appointment, the Official Receiver will be the Trustee.
"It is for the Trustee or Official Receiver to collect in the assets insofar as he is able to do so, and to establish debts. If he finds that he has any money, he might be able to declare a dividend to the creditors.
"Mr. Hall submitted a statement of affairs to the Official Receiver and the court which the judge determined as inadequate. He is required to submit another statement.
"He should be providing information for the creditors and he must attend in person.'' Mr. Hall could face further trouble for appearing in court as a barrister in January without a practising certificate.
Appearing for a client without a valid practising certificate is an offence under the Bermuda Bar Act, punishable by a $10,000 fine, two years in prison, or both.
It is understood the Bermuda Bar Association has referred the matter to its Professional Conduct Committee, which deals with alleged breaches of the Bar's professional code.