The issue of bankruptcy tourism has gained notoriety in the Republic of Ireland due to the recession and property crash there resulting in high levels of debt and personal insolvencies.
However, the phenomenon first emerged in the UK in 2009 when it was reported that German and Austrian nationals were moving to Kent in order to take advantage of bankruptcy laws in England and Wales, whilst residing close to Eurostar.
[2] The level of Irish debt being written off in the UK has prompted the government there to seek to have EU law amended in order to make it harder for Irish residents to move to the UK and take advantage of more lenient bankruptcy laws there[3] where bankruptcy lasts for a period of twelve months (but salary instalments can required for up to three years)[4] as opposed to twelve years in the Republic of Ireland.
The most prominent cases of alleged bankruptcy tourism are perhaps those of David Drumm former chief executive of Anglo Irish Bank[52] and property developer John Fleming.
Fleming,[7] who had personally guaranteed much of the €1 billion debt of Tivway and associated companies in Ireland, was discharged from bankruptcy in the UK on 10 November 2011, the anniversary of the date on which he was declared bankrupt there.