On 31 December 1969, Poulson was formally removed from control of J.G.L. Poulson and Associates. On 9 November 1971, he filed his own bankruptcy petition, revealing debts of £247,000. The bankruptcy hearings in spring 1972 were assisted by Poulson's meticulous record-keeping which detailed his payments and gifts. Poulson's generosity drew the comment from Muir Hunter QC during the bankruptcy proceedings that "[i]n fact, Mr Poulson, you were distributing largesse like Henry VIII". The bankruptcy hearing also revealed Poulson's love for a lavish lifestyle and his penchant for rubbing shoulders with senior figures in the establishment. This desire to show his financial superiority over others only served to highlight his true character as a lonely, friendless and insecure person. One of Poulson's biggest creditors was the Inland Revenue to which he owed around £200,000. Whilst the Revenue were pressing Poulson for payment of this amount, he was himself presiding over debt hearings in Wakefield in his role as a Commissioner of Inland Revenue.
