EconPapers    
Economics at your fingertips  
 

The Phenomenon of “Consumer Insolvency Tourism” and its Challenges to European Legislation

Thomas Hoffmann ()

Journal of Consumer Policy, 2012, vol. 35, issue 4, 461-475

Abstract: Consumer insolvency tourism, i.e., the relocation of over-indebted natural persons into a Member State granting a more favourable discharge regime from personal debt than the home country, has been focused by media as well as by legal practitioners quite intensively lately. Conflicts arise not only in distinguishing genuine and fictional relocations of the centre of main interest (COMI), but also between the effect of discharge and creditor's perspectives who did not take into account the possibility of considerably more debtor-friendly discharge facilities abroad when issuing the credit. While relocating a corporate COMI to another Member State providing better restructuring conditions will generally benefit both creditor and debtor, the effect of discharge in consumer insolvency procedures leads to less balanced results. It is not controversial that the current practice is in accordance with the wording of the European Insolvency Regulation (EIR). However, little research has been done so far on the question whether the phenomenon itself has been endorsed by the EIR. Even if consumer insolvency tourism is generally not regarded as an abuse of the EIR or of European freedoms, it may still not respect the interests of both debtors and creditors appropriately. With regard to the prospective revision of the EIR, this paper proposes different approaches to balance the interests of debtors and creditors by normative means. Copyright Springer Science+Business Media, LLC. 2012

Keywords: Consumer insolvency tourism; Personal bankruptcy; Discharge; European Insolvency Regulation; Forum shopping (search for similar items in EconPapers)
Date: 2012
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s10603-012-9207-8 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jcopol:v:35:y:2012:i:4:p:461-475

Ordering information: This journal article can be ordered from
http://www.springer. ... es/journal/10603/PS2

Access Statistics for this article

Journal of Consumer Policy is currently edited by Hans Micklitz, John Thøgersen, Lucia A. Reisch, Alan Mathios and Christian Twigg-Flesner

More articles in Journal of Consumer Policy from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-06-21
Handle: RePEc:kap:jcopol:v:35:y:2012:i:4:p:461-475