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The purpose of this paper is to investigate to what extent the increased insolvency filings by migrants since the enactment of the consumer insolvency law in 1999 is associated with moral hazard. It describes the profile of migrant debtors and highlights the areas of moral hazard. This study aims to propose changes to the consumer bankruptcy system.

Empirical evidence for this work consists of primary data from 435 individuals mainly with immigration background, who were declared bankrupt by district courts (Amtsgericht). Both qualitative and quantitative research types were used. Interviews helped to attain an in-depth understanding of the way in which any misconduct may take place. Quantitative data were gathered to understand the debt profile of migrant debtors, types of liabilities and creditors’ reactions to write-off requests.

The paper provides empirical insights about the way misconduct is pursued and suggests that neither party, i.e. the debtors through debt counsellors and creditors/factoring companies or their representatives, is entirely free of unethical practice. Hence, the paper stresses the need to establish public agencies, which provide joint mediation services for private debtors and their creditors alike.

Data collected for the purpose of this study may not be comprehensive because given the sensitivity of the area of study that is misconduct – including breaking the law – not all machinations may have been revealed and described in this work. Therefore, further research needs to be conducted in this field.

The paper has implications for policymakers. Consumer bankruptcy system is relatively new and needs to be amended to allow debtors and creditors to negotiate write-offs not by sending countless letters through their respective representatives, which is also carried out over a long period of time, but to try to come to terms in one agency, which is responsible for both sides.

The findings in this paper may provide some valuable insights, which could also give impulses to debates on problems that may come with immigration.

To the best of the author’s knowledge, no research exists that analyzes the topic at hand with such extensive data and using both methods of research at the same time.

In the Middle East and North Africa (MENA) region several factors contribute to corruption with a consequence of savings being squandered away and funds withheld from productive investments. This paper aims to argue that Muslim countries have a competitive advantage over the industrialized world in that the Islamic faith is important to the populace, which the west lacks and is trying to replace it with substitutes like for instance moral education in schools.

The paper examines corruption in the light of the Qur'an and Hadith. It looks at related issues and corrupt practices in the industrialised world based on secondary sources and a few primary data.

Moral renovation in Muslim societies appears to be easier to realize than in western societies once its underlying cause, notably poverty, is tackled. Self‐restraint is an absolute prerequisite for a successful fight against corruption. Organizational instruments against corruption can only succeed to eliminate corruption only through political leaders committed to weeding out corruption.

The paper informs educationalists, policy makers, entrepreneurs in the MENA region that Islamic ethics must be the guiding force behind all good economic attitudes.