Ireland has always been a debt perplexity. They’ve never really had a good way of dealing with past due debt and allow people to get a fresh start. When I was over in the UK for two years I spent quite a bit of time working on the problem or debt in the Republic of Ireland.
The good news is there has been some positive movement in legislative changes in Ireland to allow consumers to file bankruptcy in the future. But for now, it’s still a difficult process.
But it looks like at least one insolvent practitioner in the UK has developed a solution if you are ready to move from Ireland to the Uk for six months.
Under this process by IrishBankruptcyUK.com it is possible to discharge EU debts as long as you establish enough of a residency in the UK to have access to the Insolvency Service courts.
This is not a new trick, it’s been around for years on a smaller scale. In the past I was aware of some people that had moved from other EU countries to the UK and rented a group house to meet the residency requirements.
But here are the steps laid out by IrishBankruptcyUK.com.
Step 1: You make the decision to temporarily emigrate to the UK in face of mounting debt in Ireland.
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Step 2: You hand back the keys of properties and other assets to banks, building societies, financial institutions in the Irish Republic.
Step 3: You move to Britain and establish a COMI – a centre of main interest where you rent property, register to vote, create an address for utility bills, find work etc.
Step 4: Through IrishBankruptcyUK.com you fill in a 26-page form applying for to be bankrupt in the UK. This can be done at least after six months of residency at a COMI in the UK.
Step 5: You must remain in the UK for up to nine months or beyond to secure your bankruptcy order.
Step 6: Through county courts the service takes through the process which is some cases has been a formality lasting up to 35 seconds in a rubber-stamping exercise.
Step 7: After residing as a bankrupt in the UK for nine months or more you can return to the Republic of Ireland fully protected in terms of your debts being written off. You may not be able to open a bank account in Ireland for up to 12 years under the current regime but there is nothing to stop you opening up a parallel account in the UK after only 12months in financial purdah, an account whose funds you can draw from while in Ireland.