Great Britain is known for many things; they were once the powerhouse of the new world, colonizing and trading throughout the continents. Now, they're revered for their tradition, culture, and royalty. This beautiful country is a destination spot for many travelers and tourists, but lately, Great Britain's been seeing a different kind of tourism; "bankruptcy tourism."
That's right; Great Britain is quickly becoming well-known for their lenient bankruptcy laws, which is attracting financially troubled businesses and individuals at a staggering rate. In fact, just this week, Britain's Insolvency Service has closed down over 60 companies that were set up in Britain trying to take advantage of their relaxed bankruptcy laws. These companies were linked to two German business advisors, who planned on transferring troubled German businesses onto British land and jurisdiction; allowing them to go bankrupt in Britain, who is growing notorious for their one year bankruptcy term.
While these German advisors were essentially selling registered addresses of dormant businesses (and have further proved no ownership or right to these addresses) many people are learning the other loopholes in Great Britain's bankruptcy law. Their original plan was to shorten the bankruptcy term to three years, but decided one year for honest and cooperative businesses and individuals was fair. Unfortunately, a one year bankruptcy term is proving to be too lenient as European businesses and individuals flood the country, seeking citizenship, then bankruptcy.
One of the biggest influxes of new citizens will likely be from the neighboring Ireland, whose current bankruptcy system is anything but lenient. In fact, just recently has Ireland implemented an automatic discharge after 12 years of being bankrupt. The old law subjected bankrupt individuals to at least 12 years of punitive restrictions, and they remained bankrupt until fully discharged by the court. Soon Ireland will change this to a five year term, if all conditions are met, but as of now a 12 year discharge (one of the longest terms of anywhere in the world) is all an Irish debtor has to look forward to.
So can you blame them? Irish debtors are just now hoping to discharge after a 12 years, when just a quick train ride and a year of residency can release them of their debts within a year? It almost makes no sense to stay in Ireland and wait patiently on the proposed changes to take effect. Since fleeing to Britain is the logical choice for many Europeans, it looks like Great Britain will have to take a second look at their bankruptcy law and make some necessary changes in the near future. As an Killeen and Waco bankruptcy lawyer I know that bankruptcy law should be fair to both the debtor and creditors. If you're considering filing for bankruptcy, call an experienced attorney to learn about your options.
About the Author: Jeff Davis is the Owner of the Davis law firm and a highly experienced Killeen and Waco bankruptcy attorney. To find out more information about a Killeen or Waco bankruptcy lawyer, please visit www.jeffdavislawfirm.com.