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Britain Is 'bankruptcy Tourism' Hotspot

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http://uk.biz.yahoo.com/090925/140/ir6qv.html

Financial News

Saturday September 26, 09:37 AM

Britain Is 'Bankruptcy Tourism' Hotspot

By © Sky News 2009

Click to make photo a bit bigger

Cash-strapped Europeans are travelling to Britain to go bankrupt - then returning home debt-free.

"Bankruptcy tourism" is becoming so popular that a company is now helping insolvent Europeans to travel and live temporarily in the UK.

Lenient laws mean that foreigners can live in Britain, file for bankruptcy and leave with the slate wiped clean after just 18 months.

Laws in other European countries make it tougher to lose bankruptcy status.

That's right--come to Britain where irresponsibility is condoned and even encouraged. Brown's Britain!

Disgusting. :angry:

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Maybe this be a cunning plan to provide tenants for the UK's stricken BTL landlords...

Can see the appeal for a small businessman from East Germany/Poland/wherever whose company has gone down the spout. Siphon off enough Euros to last 18 months in the UK (remember those Euros buy more pounds now), go bankrupt and spend your free time brushing up your English (and other skills). Return to Go.

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http://uk.biz.yahoo.com/090925/140/ir6qv.html

Financial News

Saturday September 26, 09:37 AM

Britain Is 'Bankruptcy Tourism' Hotspot

By © Sky News 2009

Click to make photo a bit bigger

Cash-strapped Europeans are travelling to Britain to go bankrupt - then returning home debt-free.

"Bankruptcy tourism" is becoming so popular that a company is now helping insolvent Europeans to travel and live temporarily in the UK.

Lenient laws mean that foreigners can live in Britain, file for bankruptcy and leave with the slate wiped clean after just 18 months.

Laws in other European countries make it tougher to lose bankruptcy status.

That's right--come to Britain where irresponsibility is condoned and even encouraged. Brown's Britain!

Disgusting. :angry:

Maybe potential bankruptees should ask for a taxpayer bailout instead

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I find this puzzling.

In the T&Cs of most contracts it will say "subject to the laws of England and Wales".

Does it not say something similar on credit contracts signed in Poland or Germany?

How do county courts in the UK have jurisdiction on credit contracts between lenders and borrowers in Germany?

I'm not bothered at all by the so called 'moral' argument - that's been done to death. The banksters charge 20-30% interest on unsecured lending because they are the creme de la creme and have the most sophisticated risk models in the known universe. There is no morality clause in any contract I've ever seen.

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What is wrong with this? Business plonks itself down anywhere in the world where it can work fiddles of

all sorts. I'm all for helping the little man screw over the banksters and financiers.

Edited by Olebrum

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Its an excellent thing people should think before they loan people money.

Also these folks assets are freed/revalued they can go and start again. Though I do not condone borrowing to much you have the "smartest people" in the world often selling complex products with the support of the government to people who have no clue what they are getting into.

We should have done this with the banks get them in strip them naked see what they have wash them shave them and send them out cleaner and smaller.

The bad decision was giving them more money to carry on the only think we know is we owe more money.

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Its an excellent thing people should think before they loan people money.

Also these folks assets are freed/revalued they can go and start again. Though I do not condone borrowing to much you have the "smartest people" in the world often selling complex products with the support of the government to people who have no clue what they are getting into.

We should have done this with the banks get them in strip them naked see what they have wash them shave them and send them out cleaner and smaller.

The bad decision was giving them more money to carry on the only think we know is we owe more money.

it dont matter since we will all be paying for the losses anyway. fill yer boots me hearties !!!

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Its an excellent thing people should think before they loan people money.

Also these folks assets are freed/revalued they can go and start again. Though I do not condone borrowing to much you have the "smartest people" in the world often selling complex products with the support of the government to people who have no clue what they are getting into.

We should have done this with the banks get them in strip them naked see what they have wash them shave them and send them out cleaner and smaller.

The bad decision was giving them more money to carry on the only think we know is we owe more money.

there is nothing complex about ANY financial "products". they Appear complex because thats what they want you to beleive.

the thing about financial "products" is that either you have money or you dont.

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there is nothing complex about ANY financial "products". they Appear complex because thats what they want you to beleive.

the thing about financial "products" is that either you have money or you dont.

If you have the money you don't need them.

Therein lies the irony. They are designed, priced and targeted to extract maximum profit from the poorest with the least access to capital. Like most schemes devised by those with capital.

This quasi-christian moral browbeating by some is a self-delusion of which the banksters would be proud.

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In the T&Cs of most contracts it will say "subject to the laws of England and Wales".

Does it not say something similar on credit contracts signed in Poland or Germany?

How do county courts in the UK have jurisdiction on credit contracts between lenders and borrowers in Germany?

My guess: the laws of Poland and Germany (as in, some EU treaty they've incorporated into their law) say that bankrupt in one EU member state = bankrupt in all.

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I find this puzzling.

In the T&Cs of most contracts it will say "subject to the laws of England and Wales".

Does it not say something similar on credit contracts signed in Poland or Germany?

How do county courts in the UK have jurisdiction on credit contracts between lenders and borrowers in Germany?

Under EC law countries have to recognise each other's insolvency legislation. Therefore a party contracted under German law will have to recognise a British or Estonian bankruptcy just as much as a German one.

It makes sense if a business with cross border operations goes under; it only has to go insolvent once and one country's system can deal with everyone. It was never really intended to apply to individuals and their consumer borrowing, but it does make life a bit easier if you are trying to deal with someone who goes bankrupt in this country and has some BTL property in Spain or wherever.

In order for the European legislation to work it seeks to recognise where someone's "Centre of Main Interests" is. You are supposed to go bankrupt where your centre of main interests is located. This perhaps needs to be toughened up; as someone who goes back home the day after their bankruptcy clearly never intended to make the UK their centre of main interests.

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