UK Bankruptcy for EU clients
If you are an EU national from Latvia, Lithuania, Estonia, Poland, Germany or other EU Member State (Denmark excepted) and unable to pay debts owed to creditors in your home country, you may benefit from the UK bankruptcy laws.
England and Wales bankruptcy law is perceived to be significantly more “debtor friendly” in comparison to that in other Member States. This “debtor friendliness” is attributed to the following factors:
- Debtors are entitled to automatic discharge (when they are freed from their debts) no later than one year from the bankruptcy order. The discharge extends to credit and tax debts and is subject to few exceptions.
- Bankruptcy process may be used by traders and ordinary consumers.
- Debtors do not have to inform creditors of their bankruptcy petition.
- Debtors are not required to renegotiate with creditors before submitting their bankruptcy petition.
On the other hand, bankruptcy is not something that should be rushed into. Certainly there are times when it can be very useful, but there are other times when declaring bankruptcy would be a monumental mistake. Read more about the advantages and disadvantages of bankruptcy.
The EC Regulation on Insolvency Proceedings 1346/2000 (the Regulation) states that the courts of the member state within the territory of which the centre of the debtor’s main interests (“COMI”) is situated shall have jurisdiction to open insolvency proceedings. In general terms, the law applicable to insolvency proceedings and their effects will be that of the member state within the territory of which such proceedings are opened.
Under the Regulation the “Centre of Main Interests (COMI)” should correspond to the place where the debtor conducts the administration of his interests on a regular basis. The Court will usually regard as COMI the country in which the debtor carries out his main trade, profession or self-employment. In other cases the debtor’s habitual residence (i.e. the place where the debtor normally lives) is considered to be the COMI.
The COMI is determined at the date the bankruptcy petition is presented. Thus, the English courts have ruled that, the location of creditors and the country in which debts were incurred are not vital factors in determining a debtor’s COMI.
Borrowers may change their COMI at any time and for what may be a self-serving purpose – for example, to take advantage of more favourable bankruptcy laws; but the relocation must be real! It is the fact of the relocation, rather than the intention behind the relocation, which is the decisive factor.
Contact us now and see how we can help you. All enquiries are treated in the strictest confidence.
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Note that if you are made bankrupt, your property and assets could be at risk and your credit rating will severely be affected for six years.
Our initial advice is free. However, if you decide to go ahead with our bankruptcy assistance service fees will be payable. The fees will be discussed and agreed with you at the outset of the service.
You have a 7 working days cooling off period from the commencement of our services. If you decide to cancel our service during this time, we will refund you any fees paid to us that are cleared funds.
