London, Sep. 26 (ANI): Britain is fast becoming Europe's 'bankruptcy tourism' hotspot, with many cash-strapped foreigners travelling to the country to go bankrupt - then returning home debt-free.
Britain's lenient bankruptcy laws can be attributed for the emerging trend. Under them, foreigners can live in Britain, file for bankruptcy and leave with a clean status just after 18 months, Sky News reports.
"I came to England because I have debts, credit cards debts. It's not my fault I have these problems, it's not my fault I'm in this situation," Klaus Schmidt, a divorced man who owes more than 150,000 pounds, was quoted by the report, as saying.
Laws in other European countries make it tougher to lose bankruptcy status.
In Germany you remain bankrupt for anything between seven and nine years, in Ireland you can remain "undischarged" for at least 12 years, the report says.
Due to the rising popularity of 'bankruptcy tourism', a company is even helping insolvent Europeans to travel and live temporarily in the UK.
Kent-based German company Insolvenz Agentur makes arrangements for medical provision, housing and even helps provide a UK driving licence, the report said.
Experts say the phenomenon is becoming more popular, but argue that it can benefit Britain.
"Most people coming to do this seek to work whilst they're here. They come here looking for work, so they contribute to the economy in some respect," says Mark Sands, Head of Bankruptcy at Tenon.
According to the report, the process of "bankruptcy tourism" is legitimate irrespective of whether it is ethically sound or not. (ANI)