A necessary precondition to be permitted to get into an Individual Voluntary Arrangement (IVA) is that you simply must first be insolvent. Even though there are actually alternative options for the insolvent person that include bankruptcy, this analysis shall just simply examine the benefits and drawbacks of the IVA solution when you are unlucky enough to find yourself in this situation. Continue reading
It promised to hit the ground running and the new Irish Government will soon be a hundred days in office. It has committed to making many changes so perhaps now is the time to ask some questions as to what it is doing for the ordinary citizen as distinct from what it is doing in relation to banks, developers, NAMA and sovereign interest rates in its admittedly strenuous efforts to meet its committed EU and IMF performance targets. Continue reading
When confronted with enormous financial debt worries it’s easy for the solitary borrower to neglect the effect of non-payment or late settlement on creditors. The financial institution is frequently considered as the big bad wolf and not worthy of any sort of sympathy from the beleaguered person in debt. The reality is that creditors have a vested interest in the fundamental alternatives that the borrower takes in order to resolve debt matters. Financial institutions can be helpful and amenable especially when the consumer spots and confronts debt difficulties at an early stage with a view to remedying them to everybody’s satisfaction. What are the choices for the borrower? Continue reading
Time and money are two key resources in any successful business. They encompass and conjure up ideas of costs, budgets, productivity, deadlines, profitability investment and so on. The list is endless. The analogy with bankruptcy or rather the legislation dealing with bankruptcy in Ireland springs to mind.
The two principal criticisms of Irish bankruptcy law are that bankruptcy costs too much and it lasts too long. Due to the need for the bankruptcy to be dealt with by the high court, costs of the order of £30,000 are the norm. What creditor can afford that? With no opportunity to examine the estate of the bankrupt in advance, what creditor is going to risk petitioning for a debtor’s bankruptcy with no guarantee that assets realized will cover such huge costs, let alone begin to repay debts? Continue reading
There are several advantages to merging your financial obligations into just one debt consolidation loan. For many people it can be appealing to begin to make only one payment per month as opposed to many monthly payments. Making lots of monthly payments towards a number of lenders in respect of a number of different accounts is time consuming, in particular when financial resources are restricted and there’s too little money to go around. You’ll have to select which bills are ‘priority’ ones. These you need to pay. With regard to the rest simply must make do with whatever you are able to repay, even when in some instances it is lower than the contractual amount of money that you should be paying. I big advantage – whether perceived or actual – is that you have just one lender to deal with instead of many creditors. Dealing with your funds as well as obligations is simple. It is additionally probable that your credit score will improve particularly if you include all of your credit card accounts within the debt consolidation. On top of those benefits, the actual monthly repayment on the consolidation loan could be below the total amount of the payments on the multiple loans. Continue reading
Recently issued figures estimate that the expense of rearing a child starting from arrival to twenty one years old might be up to £200,000. We will assume that you’re in an IVA turn out to be pregnant. The issue of attempting to keep up your IVA during your pregnancy and especially following the arrival of your baby can be a difficult one. The unquestionable enjoyment of getting a child will have to be tempered with the inescapable fact that financial difficulties will most likely escalate. Yet, plenty of borrowers in IVAs have effectively overcome the issues presented in these kind of situations. Continue reading
An IVA is a professional agreement between you and your unsecured lenders to pay back some of your debts over a defined time frame – ordinarily five years, but it could be for a lesser period.
Secured creditors expect to obtain the complete contractual repayments on their secured loans to you over the lifetime of the IVA. Should you have a home loan, you’re going to be required to make the monthly home loan repayments to your home loan provider in full. Continue reading
Did you know that there are now twenty seven countries in the European Union (EU) all with their own personal insolvency legislation? The mind boggles at the volume, variety and complexities of laws and regulations which this must entail. The EU of course seeks the harmonize laws including insolvency laws in member states as one of its objectives. Until such harmonization is achieved, citizens of member states of the EU may legally seek to address their own personal insolvency and seek to apply a solution in the member state which is most favourable to their situation. In the area of personal insolvency, bankruptcy tourism has sprung up as citizens have become aware that they can seek to deal with their financial problems in a jurisdiction other than that in which their debt was incurred. Bankruptcy tourism could perhaps be humorously defined as the free movement of financial solutions (or problems), going hand in hand with the free movement of labour. Continue reading
RTE television recently featured a number of Irish couples who were drowning in debt largely as a result of having taken out large mortgages at the height of the property bubble in 2006 to 2007. There are over 45,000 mortgages now in arrears of three months or more in Ireland. It is estimated that a further 35,000 homeowners have renegotiated the repayment terms of their mortgages by rescheduling mortgage payments, switching to interest only mortgages, extending the term of their mortgage or agreeing a payment holiday with their mortgage providers. Continue reading