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Bankruptcy tourism is the phenomenon whereby residents of one country move to another jurisdiction in order to declare a personal bankruptcy there, before returning to their original country of residence. This is done in order facilitate bankruptcy in a new jurisdiction where the insolvency laws are deemed to be more favourable. It is most prevalent in Europe where EU laws allow the free movement of residents to other Eurozone countries. Once in the new jurisdiction a person seeking bankruptcy must establish their Centre of Main Interests there in order to qualify as a resident and, therefore, petition for a successful bankruptcy.
References
- ↑ Keenan, Mark (10 July 2012). "British bankruptcy specialists see Irish clients treble despite new law". Irish Independent . Independent News & Media . Retrieved 10 July 2012.
- ↑ "Bankruptcy tourists cross Irish Sea". RTÉ News . Raidió Teilifís Éireann. 20 December 2011. Retrieved 20 December 2011.
- ↑ McDonald, Henry (27 May 2012). "Irish dodge debts through UK 'bankruptcy tourism': Bankrupt clients from Ireland have used a Leicester solicitor and UK courts to wipe out more than €1bn debts taken out in the republic". The Guardian . Guardian Media Group . Retrieved 27 May 2012.
- 1 2 Hennessy, Mark (11 January 2013). "Bankruptcy in Britain still an option for Irish". The Irish Times. Retrieved 11 January 2013.
- ↑ "'Extraordinary' rise in number of Irish people seeking UK bankruptcy". RTÉ News . Raidió Teilifís Éireann. 4 February 2013. Retrieved 4 February 2013.
- ↑ Quinlan, Ronald (6 January 2013). "Bankruptcy in UK – not just for rich and famous: The UK's more benign bankruptcy regime may still attract Irish people". Sunday Independent . Independent News & Media . Retrieved 6 January 2013.
- ↑ Walsh, John (28 February 2013). "Shatter bid to stop 'bankruptcy tourism'". Irish Examiner . Thomas Crosbie Holdings . Retrieved 28 February 2013.