If you saw them on the street, they would seem like a happy, completely normal Aussie family.

But Kathryn and Mike Arnold, in their 40s, have left behind an unhappy trail of creditors dating back decades.

The sydney duo make quite the pair – Mike is bankrupt and has been banned from running his own company since 2014, while Kathryn is the director of a recently collapsed building firm.

In December, news.com.au reported that Workspace One Pty Ltd, which specialised in office refurbishments, liquidation-owing-845k-asxlisted-company-caught-up-in-collapse/news-story/0c585f3be0dd82dcb49c26a6043e2f0c” target=”_blank” data-tgev=”event119″ data-tgev-container=”bodylink” data-tgev-order=”0c585f3be0dd82dcb49c26a6043e2f0c” data-tgev-label=”finance” data-tgev-metric=”ev”>had gone into liquidation with liabilities of $845,000.

ASIC records show that the liquidator accused the building firm’s sole director, Kathryn Arnold, of pocketing $861,000 in company money prior to its collapse – more than the sum total the business owed to creditors – and also noted there were suggestions her bankrupt husband Mike could have been operating as a “shadow director”.

Ms Arnold previously admitted to news.com.au she transferred money to a personal account to pay and reimburse herself for business costs and did not dispute the amount, but did deny that Mike was a shadow director.

Now, a news.com.au investigation has dredged up the couple’s fraught past, with one person still owed money from 2007, while it appears…