Bankruptcy is where the property or assets of an individual, who is unable (or unwilling) to pay their debts, is transferred to a trustee (a person given charge of the property) by the High Court to be sold. When the property or assets are sold, the costs, expenses, court fees and certain priority debts are paid. After this, the net proceeds are distributed to those owed money (the creditors).
In nearly all cases, the Official Assignee in Bankruptcy, an officer of the Courts Service, is the trustee to whom this property is transferred. This is the person who administers the estate of bankrupt persons.
There are 2 ways to become bankrupt: You can Petition for your own Bankruptcy or one of your creditors (people you owe money to) may petition for your bankruptcy.
Petition for your own Bankruptcy
You may bring a petition for your own bankruptcy where you are unable to pay debts to creditors and where your available estate (for example assets and property) is sufficient to produce at least €1,900.
You must provide an affidavit that you have made reasonable efforts to reach an arrangement with your creditors. This can be done by investigating the possibility of entering a Debt Settlement Arrangement (“DSA”) or Personal Insolvency Arrangement (“PIA”). You must also show that your debts exceed your assets by at least €20,000. The Court must be satisfied that you are unable to meet your obligations with creditors for the petition to be granted.
Petition by a Creditor
A creditor may petition for bankruptcy against you if you have committed an act of bankruptcy within the previous three months. The most common acts of bankruptcy relied upon by a creditor are:
- failure by you to comply with a summons requesting payment of a specific sum due, within fourteen days from service of the summons on the debtor, and
- the making of a return of no goods by the sheriff or county registrar.
For a creditor to be entitled to petition the court to make a you bankrupt, a number of conditions must be met. These include:
- the petition must be presented within three months of the act of bankruptcy,
- the amount of debt owed must be set out in an affidavit,
- the debt owed must be at least €20,000
- You must be either resident in the State or within a year prior to presentation of the petition, have ordinarily resided, had a dwelling house or place of business, or carried on business within the State.
The creditor's petition must state whether any security (for example, a mortgage or a charge) is held by them in respect of the debt. If so, the creditor must indicate whether he/she intends to give up the security for the benefit of other creditors or put a value on their security.
The Court will also consider whether a DSA or PIA would be a more appropriate solution for you before granting a Bankruptcy petition.
If your debts are large enough that you are considering bankruptcy there may be alternative solutions available, that may suit you better. For instance, the Debt Settlement Arrangement (“DSA”) or Personal Insolvency Arrangement (“PIA”) are two new debt solutions enacted by the Irish Government in 2012. These solutions can allow you to come to an agreement with your creditors to enable you to keep your assets.
We offer a range of serivces to help you, so if Bankruptcy is not your best option or if you would prefer something else, we can help with that too.
We offer a free advice only service where we can review your financial situation and let you know of all of your options.
We also offer PIAs; a Debt Solution that can help you deal with mortgage difficulties and other debts.
A DSA allows you to pay back what you can afford towards your debts. The remainder is written off on completion.
We are one of the only Insolvency companies that does not charge upfront fees. Paying any provider upfront fees will only cause a delay in your Insolvency procedure and cost you extra money that is completely unnecessary. DO NOT PAY UPFRONT FEES EVER!
We have an amazing acceptance rate for Insolvency cases proposed. We know any solution we propose will have a great chance of being accepted. We also fight very hard for every client to make sure their Insolvency proposal is carefully considered by the creditors. Our proposals will always be based on something that is affordable and because of this every case we propose will be unique.
We have an excellent customer care team. We are a family run company and our advisors have all been with us for many years. They are highly trained and will be able to answer any question quickly and professionally. You will also find us very friendly.
Our company is part of McCambridge Duffy, a company that has been established for 80+ years. In this time we have gained a reputation for our ethical approach. We only recommend an Insolvency solution if it is your most appropriate option, and all other options will be discussed too. We are one of the best known Insolvency companies in Ireland and have already successfully helped many people deal with their debts.
At National Debt Relief we are driven by providing just that...
"Debt Relief" to people who really need it.
We believe that everyone should have access to sound advice, information and the best possible options for their situation. We pride ourselves on offering good quality, caring customer service.
Our philosophy is reflected in the feedback we receive from our many happy clients and the results in the successful plans we put forward. Read some of our testimonials below taken from our many client reviews.
We were struggling with our financial situation. From day one the staff dealt with us in a professional, caring and understanding manner. Everything was explained to us in great detail and the communication was excellent. We can now look forward, thank you. We highly recommend this company.
Sorted my Debt Problems
I contacted this company in hope of help with my massive debts and they could not be more helpful and sympathetic.
From start to finish they were in contact and helped all the way. They sorted it all out and reduced my monthly payments from nearly 700 down to 200 a month absolutely fantastic we know own have a life again. I wud recommended mccambridge duffy to anyone as they will help you without fail.
Very friendly reassuring confident personal service
Very reassuring staff whom handled my situation very professionally and made me feel very confident that I had the support I needed from start to finish. Always keeping me up to date and advising me of my options. Their service was seamless and the conclusion was as I hoped.
If you are in need of advice just call them. If its possible they will help you too.