We have reported in the past that the insolvency service is taking a dim view of so called ‘bankruptcy tourism’.
The bankruptcy regime in England is much more relaxed than inother countries, for example in Germany the length a person can be bankrupt is up to 7 years, whereas at the moment in England it is 1 year.
A legal firm which has been advising and facilitating German nationals with their bankruptcy petitions in Hull, has been wound up by the High Court in Manchester.
Lovell Hill & Co LLP (LHC) was found to have been offering bankruptcy relocation services, assisting people to claim that their Centre of Main Interests (COMI) was in England, therefore misleading the Court in order to obtain a bankruptcy order in England and dump the German debts.
In some cases bankruptcies have been annulled where it has successfully been argued that the debtor’s COMI is not in England and the bankruptcy order should not have been made.
The rules on COMI and the criteria surrounding your centre of main interst can be complex and we would urge anyone who is contemplating bankruptcy and has incurred debts in a foreign jurisdiction to contact either John or Andrew to discuss.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a York office for over five years now and specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.