Deacon declared personally bankrupt

MERSEYSIDE solicitor David Deacon, a founder of the collapsed Liverpool firm Deacon Goldrein Green (DGG), has been declared personally bankrupt.

Petitioning creditors, Chester-based NWS Trust, last week successfully applied for the bankruptcy order at Liverpool County Court.

Deacon, who left the 18 office firm two years before it became the biggest ever law firm receivership last October with estimated debts of u5 million, was not present at the hearing.

However, Deacon's solicitor Marshall Ronald opposed the application, which was heard in chambers before District Judge Elliott Knopf.

Ronald says: “It's not over yet. We are going to seek a review of the order by the court.”

Review papers will be lodged by counsel at the Liverpool court this week, within the 14-day appeal period.

Eight Deacon Goldrein Green partners were made bankrupt in January.

An earlier petition lodged against Deacon by NWS was dismissed last month. Deacon then issued a writ against them claiming malicious presentation of a bankruptcy petition.

NWS then lodged another petition leading to last week's hearing. The company has also applied for Deacon's proceedings to be struck out on the grounds that they are frivolous and vexatious, says its solicitor Andrew Gregory, partner of Davies Wallis Foyster.

Bankruptcy petitions against two other former partners Martin Green and Patricia Reynolds, which they are opposing, will be heard on 19 May.

*Patricia Reynolds, who works in the legal department of NWS Bank, has asked for it to be pointed out that she is not the former partner Patricia Reynolds involved in the DGG bankruptcy.