A recent article by Lisa O’Carroll highlighted the interesting phenomenon of bankruptcy tourists from Ireland heading to the UK to discharge their debts. Due to more favourable insolvency laws – a bankrupt in the UK is discharged after just twelve months, whereas in Ireland it’s a draconian twelve years – Irish debtors are doing the sensible thing and crossing the sea for a quick release from debt.
Fish 'n' Chips, Tea, Becoming Debt Free
The most fascinating revelation in the article was that, ‘as few as 29 people were made bankrupt in Ireland last year’, a staggeringly low number considering the severity of the property crash in the Republic, especially when compared to the 79,000 who went bankrupt in the UK during the same period. It’s not difficult to deduce that the UK is effectively operating as Ireland’s bankruptcy court, which is considerably more helpful to Irish citizens than another bailout loan. Although ascertaining exactly how many of the UK’s bankrupts are made up of Irish citizens would be difficult, and clearly some Irish debtors will be eloping overseas without bothering with any formal debt discharge procedures (I would love to hear from you guys).
I just hope the message is getting through to the people at the bottom. The Irish banks have had their bailout, in turn subjecting citizens to some of the most brutal cuts in Europe. Now we hear tales of Irish property speculators bailing themselves out, by utilising UK laws. I’ve already called for a ‘People’s Bailout’, and now I extend this call to the people of Ireland – don’t be the chump left with a sackful of debt whilst everyone else extricates themselves from the mess. Get yourselves over to the UK and get rid of that debt!
Update: I have found a great article with information for Irish citizens wishing to go bankrupt in the UK. If you wish to know more then click here.
5 comments
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October 28, 2011 at 2:09 pm
Steve Thatche
That article is mine I hope you found it interesting. I am getting 2-3 calls a day from Irish citizens who want to relocate here to go bankrupt. Who can blame them. 12 years bankruptcy and then an application for discharge. It is a life sentence.
Come to teeh UK, establish your COMI and go bankrupt. Even better let me help you
October 28, 2011 at 3:57 pm
iwentbankrupt
Hi Steve, thanks for your comment. Reforms to personal bankruptcy in Ireland are in the offing, but that’s little help for those who are struggling right now; and who’s to say that the reforms will be sufficient to enable Irish people to go bankrupt at home?
October 31, 2011 at 8:31 am
Steve Thatche
The proposals in Ireland are that the bankruptcy term will be reduced to five years from 12. The problem is that all the rest of the draconian rules remain and there will still be a requirement for a bankrupt in Ireland to pay all his fees, costs, expenses and preferential debts in full. If not they will at least definately discharged now after 12 years.
November 14, 2011 at 10:56 am
iwentbankrupt
I am currently getting a lot of traffic from Irish people researching going bankrupt in the UK so I thought I’d post this article from this weekend’s Irish Independent on the subject of Bankruptcy tourists from Ireland:
http://www.independent.ie/national-news/bankruptcy-tourism-to-grow-as-debtors-declare-in-uk-2933383.html
In my view, unless Irish bankruptcy laws mimic those of the UK then this trend will persist. If, even following bankruptcy reform, Irish debtors cannot include mortage debt in their insolvency then it will still make sound economic sense for them to go bankrupt in the UK.
December 7, 2011 at 5:20 pm
iwentbankrupt
Here’s a very interesting article on a movement for Irish mortgage strikes:
http://www.guardian.co.uk/business/2011/nov/18/ireland-banks-mortgages-repossession-new-beginnings
And this is the organisation behind it:
http://www.newbeginning.ie/