Q&As

If a bankruptcy order is made against an individual in England who then moves outside of the EU to live, would the individual be considered bankrupt in that foreign country? Would it be possible to pursue the individual for payment of a bankruptcy debt (as far as the English bankruptcy is concerned) against him in that foreign country?

read titleRead full title

Produced in partnership with Gerard McCormack of University of Leeds
Published on: 05 January 2017
imgtext

It may be possible to pursue the individual in the non-EU foreign country but not however, if the English bankruptcy order is recognised in the foreign country and/or the relevant debts which are discharged by the English bankruptcy are governed by English law.

The English bankruptcy may be recognised in the relevant foreign country if that country accepts the ‘universalist’ or ‘modified’ principle of bankruptcy jurisdiction, see Practice Note: comity and the court's inherent jurisdiction—application and effects.

‘Universalism’, meaning the doctrine that a bankruptcy order made in one country has worldwide effect provided that the debtor is domiciled or possibly has its ‘centre of main interests’ (COMI) in that country. The ‘modified universalist’ doctrine may recognise certain exceptions

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Bankruptcy definition
What does Bankruptcy mean?

The court supervised process whereby the assets of an insolvent individual are realised for the benefit of his creditors.

Read more

Popular documents

Debt relief orders (DROs)

Debt relief orders (DROs)What is a DRO?DROs are 'a new and simplified way of wiping the slate clean for debtors who are too poor to go bankrupt'.A DRO is made in respect of qualifying debts.A qualifying debt means a debt which is:•for a liquidated sum payable either immediately or at some future

Bankruptcy petitions—process and procedure

Bankruptcy petitions—process and procedureBefore the hearing of the creditors’ bankruptcy petition takes place, there are a number of steps that must be taken to comply with the procedural requirements set out in the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 and Practice

What is a statutory demand?

What is a statutory demand?This Practice Note looks at what a statutory demand is and what it seeks to achieve in both corporate and personal insolvency. It assumes that the debtor is based in England and Wales.The statutory demand—the general positionA statutory demand (in both corporate and

Effect of an individual voluntary arrangement (IVA)

Effect of an individual voluntary arrangement (IVA)Effect of IVA on unsecured creditorsThe effect of the approval of an individual voluntary arrangement (IVA) is set out in section 260(2) of the Insolvency Act 1986 (IA 1986). This provides that an approved IVA:•takes effect as if made by the debtor