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Bankruptcy

What is Bankruptcy?

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:

  • address unaffordable debts over €20,000.
  • help you regain control over your finances when you have no other options available.
  • have formal protection from lenders.
  • have interest and charges are frozen.
  • have debt written off on completion.

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

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Bankruptcy

Bankruptcy Frequently Asked Questions

Browse our Bankruptcy FAQS to find out more about going bankrupt, or get in touch with us if you have any questions. Fill in the form on this page, or click here to send us a WhatsApp Message.

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:

  • Have explored all other Insolvency options, such as a DRN, DSA or PIA (You can read more about these options on our website).
  • Show the court that you've made attempts to pursue the other Insolvency solutions (A PIP can provide a certificate for this).
  • Be classed as Insolvent (unable to pay your debts).
  • Have debts above the value of €20,000.
  • Be able to pay Bankruptcy fees.

Assets or Secured Debts

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

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.

  • Your debts are written off on successful completion of the Bankruptcy.
  • You have complete protection from the lenders / creditors involved in the Bankruptcy.
  • Your Bankruptcy will normally last for 1 year (although you may have to make payments up for up to 3 years.
  • Interest and charges are frozen on your unsecured debts.
  • You will be allocated a budget for a Reasonable Standard of Living during your Bankruptcy.
  • You can keep essential items, such as a car for example, up to the value of €6,000.

  • Your credit rating will be impacted during the Bankruptcy.
  • Details of your Bankruptcy will be publicised in the State Gazette and a National Daily Newspaper or the ISI website.
  • The Official assignee will take control over your assets. This doesn’t mean you will lose your family home. You may be able to come to an arrangement with your lender and the Official Assignee, where your mortgage could be factored into your Reasonable Living Expenses allowance.

There are several costs involved in Bankruptcy:

  • On application, you must pay €200 to the Official Assignee.
  • There is a fee of €10 for the swearing of your Affidavit.
  • There is a fee involved for advertising your Bankruptcy in the State Gazette. The cost is dependent on the length of the publication.
  • There is a fee if you are advertising in a National Daily Newspaper.
  • You may be subject to costs and fees if you engage the services of a solicitor or professional to help with your Bankruptcy.

Other Debt Solutions

If a DRN is not the right Insolvency solution for you, there may be other options available. You can read more about these below. If you would like any information on how you can address your unaffordable mortgage, arrears or other debts, please get in touch for free and confidential advice today.

Personal Insolvency Arrangement
PIA (Personal Insolvency Arrangement)

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.

  • Affordable secured and unsecured debt repayments
  • Protection from creditors
  • Interest and charges frozen
  • Unsecured debt written off on completion
Debt Settlement Arrangement
DSA (Debt Settlement Arrangement)

A DSA is a solution created to help people address their difficulties with unsecured debt repayments (such as credit cards, loans, overdrafts etc...).

  • Affordable debt repayments
  • Protection from creditors
  • Interest and charges frozen
  • Remaining debt written off on completion
Debt Relief Notice
DRN (Debt Relief Notice)

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.

  • Debts are written off on completion
  • Protection from creditors
  • Interest and charges frozen
  • No monthly payments are required during the DRN period (3 years)

Client Testimonials

Struggling with mortgage payments, arrears or debts? Get a review with one of our advisors.

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 and Judy Mooney are authorised by the Insolvency Service of Ireland to carry on practice as personal insolvency practitioners. Ronan Duffy, Daniel Rule and Judy Mooney are authorised to act as insolvency practitioners by Institute of Chartered Accountants Scotland.