Bankruptcy is a formal debt solution designed to help people that are unable to repay their debts. Bankruptcy is considered as a last resort debt solution and can only be an option if you are unsuitable for any of the other Personal Insolvency solutions that are available, such as a DSA, PIA or DRN. The main aim of Bankruptcy is to:
If you are experiencing financial difficulty and would like to find out more about Bankruptcy, fill in the form and we will get in touch. We will assess your situation and advise you on all available options for dealing with your debts. All advice is free and confidential and you are under no obligation by speaking with us.
Bankruptcy is a formal High court Insolvency process designed to help you deal with your unaffordable secured and/or unsecured debts over €20,000. You can petition for your own Bankruptcy, or a creditor may petition for Bankruptcy against you. You cannot go bankrupt without first exploring other Personal Insolvency options, such as a PIA (Personal Insolvency Arrangement), DSA (Debt Settlement Arrangement) or DRN (Debt Relief Notice). Your options can be determined by carrying out a thorough assessment with a debt advisor or a PIP (Personal Insolvency Practitioner). A PIP is the professional qualified to work out what the best approach is for dealing with your debts.
A Bankruptcy application is filed in the office of the Examiner of the High Court. Any assets belonging to you are handed over to an officer of the Courts Service that is based in the Insolvency Service of Ireland (ISI), known as a Trustee or Official Assignee. They will arrange for your assets to be sold in order to cover court fees, costs, expenses and priority debts. Any remaining monies left over will then be distributed amongst your creditors.
You will be bound by any terms and restrictions during your Bankruptcy. The process usually lasts for one year, but can last up to 3 years where additional payments may be required. On completion of your Bankruptcy your debts are written off, allowing you to start over.
Determining if you are eligible for Bankruptcy really depends on your assessment, but there are some specific criteria involved. You must:
Your property and any other assets will be transferred to the Official Assignee, not including any assets that are deemed essential (such as a car up to the value of €6,000). Any Bank Accounts other than one current account will be frozen. You are allowed a balance of up to €1,000 in the current account for general living expenses.
The Official Assignee will arrange for the assets to be sold. The money generated from the sale of these assets will go towards your creditors.
Unsecured debts will be written off in the Bankruptcy. You may have to make payments towards your creditors for up to 3 years, from any income that you receive.
Your creditors will have to deal with the Official Assignee. They cannot deal with you directly.
You must first explore all other Insolvency options with a professional such as a PIP. If it is determined that Bankruptcy is your only available option, you will need to file the relevant paperwork. A solicitor or professional is not required to complete the required documentation, but the ISI does recommend that you seek legal advice before declaring Bankruptcy.
You must pay a fee of €200 to the Official Assignee and email proof of this payment to the Bankruptcy Division in the ISI. If you do engage the help of a professional, you may have additional costs to pay for their services.
You can obtain the relevant forms from the government or ISI website, including notes on how to complete the required documentation.
You must file the Bankruptcy Petition with the Examiners office, along with a sworn and verified affidavit and a sworn Statement of Affairs, along with your receipt for the €200 payment to the Official Assignee. There is a fee of €10 for the swearing of the Affidavit.
You will be given a court hearing date when the Examiners Office is satisified that your paperwork is in order. You must attend the hearing. If the judge is satisfied that you meet the requirements, your Bankruptcy will be adjudicated.
After your Bankruptcy has been granted, the Official Assignee will interview you to gather information about your assets and debts. You must fully co-operate with the Official Assignee.
An advert publicising your Bankruptcy must be placed in the State Gazette (Iris Oifigiúil) within 21 days of your Bankruptcy adjudication. You must also place a notice of your bankruptcy on the ISI website or a national daily newspaper. You will be responsible for payments in relation to these publications.
Reviews will be carried out during your Bankruptcy period of 1 year. After this time, you will be automatically discharged. Ownership of assets will remain with the Official Assignee and they will deal with the administration of your assets and debts. If you are subject to an Income Payment Order or Agreement you will have to comply with the terms of this for up to 3 years.
There are several costs involved in Bankruptcy:
A PIA is a solution created to help people address their difficulties with secured debts and unsecured debts. The purpose of a PIA is to help you remain in your home wherever possible.
A DSA is a solution created to help people address their difficulties with unsecured debt repayments (such as credit cards, loans, overdrafts etc...).
A DRN is a formal debt solution, created to help people who are unable to repay their debts (up to the value of €35,000) and have little or no assets.
If you would like a free Insolvency review of your financial situation, fill in the Fact Find form providing as much information as possible and send it through. Our advisors will review your information and get in touch to advise you of all options available.
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nationaldebtrelief.ie is a trading style of McCambridge Duffy. McCambridge Duffy Limited is a Limited Company registered in Ireland | Registered number 527584 | Registered office Suite 6, Spencer House, High Road, Letterkenny, Co. Donegal, F92 V8XC
All our advice is free. A fee is only payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any debt solution.
Ronan Duffy, Daragh Duffy, Daniel Rule, James Green and Judy Mooney are authorised by the Insolvency Service of Ireland to carry on practice as personal insolvency practitioners. Ronan Duffy, Daniel Rule, James Green and Judy Mooney are authorised to act as insolvency practitioners by Institute of Chartered Accountants Scotland.