The Bankruptcy Centre Of Main Interest

Establishing a Centre of Main Interest has attracted judicial scrutiny in the last couple of years in a few cases predominantly involving Austrian and German citizens. These cases decided whether or not a person had truly settled their COMI here. General guidance came out of these cases which help to formulate some guidance which the Insolvency Service will apply

Stephen Baister, a senior UK bankruptcy judge, thinks that it may be easier for the Irish to establish their COMI here than say the Austrians or Germans. "If an O'Neill or a Joyce turns up and gives an address in the UK, you think no more of it.". There is nothing wrong at all with establishing your COMI here. It matters not how and where you built up your debt, your COMI is decided on what you do when you declare bankruptcy. "If you prove you have a genuine tenancy agreement or if you have gainful employment and prove you are settled here, you can fill in the forms and say you can't pay your debts and we will make you bankrupt," he said.

Other good news as set out by the Insolvency service says, “Official receivers should note that the majority of EU citizens who seek the protection of the bankruptcy court will have genuinely relocated to the UK. They may have decided to move simply to take advantage of more favourable insolvency legislation but, crucially, so long as the re-location is real then the bankruptcy order would be correctly made in the UK. In summary, it is the fact of the relocation, rather than the intention behind, the re-location which is the decisive factor.”

So in order to be sure of your COMI you need to be able to show that at the date the petition is submitted you are habitually resident here in England. You may keep a property overseas habited by your wife, but you need to be genuinely resident here. It doesn’t matter if you choose to be here just because you choose to, but be prepared to show evidence of your life here.

By: Help with debt

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Steve Thatcher is the urn to advisor for many Irish people looking to go bankrupt in England. He qualified as a solicitor, but now runs his own debt advice company. Call him on 0808 160 5577. Email him at sthatcher@helpwithdbetuk.com or see www.helpwithdebtuk.com