Law made easy by Aslam

 1.  Skjevesland v Geveran Trading Co Ltd (No.4) [2002] EWHC 2898 (Ch) The case was about a Swiss banker,  (1)  who had ordinary residence in the UK, because he resided there for 92 days a year; (2)  he had a flat in London to satisfy the fact that he had a place of residence in the UK;  (3) however, his 90% of the economic interests were in Switzerland.  It was held that his ‘Centre of main interest’ (COMI) is outside EU, and the Regulation was not applicable. 2. Staubitz-Schreiber, Re  (C-1/04) [2006] ECR I-701 It was upheld by the European Court of Justice that the COMI to be determined at the time when the debtor lodges a petition for insolvency proceedings and not after that. Therefore, once jurisdiction is established, it is unlikely for a debtors to change COMI.  3. Stojevic v Official Receiver [2007] BPIR 141 It was held that the principle COMI of a natural person is the place where he has his habitual residence. An indirect economic interest of the debtor

The term ‘bankruptcy’, defined as a procedure by which debtors obtain financial relief and undergo a judicially supervised liquidation of the debtor's assets for the benefit of creditors. It is also known as a state of a person who has been adjudged by a court to be insolvent. Then the court orders the compulsory administration of a bankrupt’s affair so that his assets can be fairly distributed among his creditors. Whereas, the term ‘Bankruptcy Tourism’ refers to a process by which both, corporation and individuals (more oftenly foreign) publicize their insolvency in the jurisdiction of their choice. [1] Alternatively, the terminology is also known as ‘forum shopping’. [2] The law of insolvency varies country wise. Because of that the debtors wish to choose the place of their choice to declare their bankruptcy aiming to take advantage of the most lenient law of insolvency. By doing so they abuse the legal system of that country and get rid of the creditors.    In particul