I guess the fact that discretion can be used might be beneficial in some instances Mark?

A professional using their judgment rather than a black and white rule that cannot assess individual circumstances?

Hi TDA

You're right. Looking at the information, you could easily argue one way or the other with no definitive answer.

We have a few cases who stay abroad, fortunately all were resident within the year, but a recent one fell just out of the year period.

Mark

Always err on the side of caution can't post a link but there was an interesting case recently regarding a firm of solicitors based in Hull putting german natinals up in a hotel while they applied for bankruptcy in England.

Bankruptcy tourism has certainly been a hot issue in England Voice of Reason.

Lots of people have been travelling from other jurisdictions to take advantage of a bankruptcy process that is deemed, by many, to be softer than that which exists in many other countries.

I guess it's a little different if people that are truly linked to a jurisdiction, but who have recently moved, seek to use the personal insolvency laws in that nation that they continue to associate themselves with?

Hi Voice of Reason

I remember reading that case involving The Law Partners LLP aka Lovell Hill & Co who 'shipped' German tourists over for an easier bankrupcy ride than those in Germany.

I think the issue with that case was, incredibly, that the firm were actively marketing the system and hoping that it was an acceptable loophole.

Hotels were probably wondering why their occupancy rate was 95% German tourists!

Mark

Yes, Germans don't receive discharge for up to 7 years at the moment, although this is shortly due to change. There was actually also a recent case where a similar thing happened in Scotland and the AiB granted a debtor application. I'm not sure how rigorous their residency requirements/testing went.

To think that I was moaning about the 5 year period of an IVA. 7 years does seem excessive.

I think it's always difficult with a personal application as the information provided is always subject to interpretation and also any checking will be post appointment which is perhaps too late.

Mark

Until recently in Ireland discharge from bankruptcy took twelve years.

There were no equivalents to a trust deed as an alternative to bankruptcy.

That's changed now, but you can see why people would be prepared to move (or pretend to move) if they're confronted with that kind of legislation.

I now have visions of 150,000 bankruptcy applications during the Commonwealth Games in July!!

Mark