England has seen an increase in the number of debtors seeking to take advantage of its insolvency procedures, a practice known as “forum shopping”. In relation to personal insolvency, the term “bankruptcy tourism” has evolved to describe the influx of debtors seeking to become bankrupt in England, which has more favourable bankruptcy laws than many of its European neighbours.
Tim Carter, partner and head of Stevens & Bolton’s restructuring & insolvency group, and Dawn Grocock, associate, examined why and how forum shopping is effected, and the positive and negative implications of the practice, in an article that featured in our Summer 2014 edition of International Newsbrief. They also consider the approach of the English courts and proposals for reform.