Bankruptcy

Bankruptcy may be an option for you if the insolvency solutions – Debt Relief Notice (DRN), Debt Settlement Arrangement (DSA) and Personal Insolvency Arrangement (PIA) – are not appropriate.  Our personal insolvency practitioner (PIP) will advise you on the different options and the most suitable solution for your debt.

Criteria & Process

• You must have a minimum debt of €20,000 to be considered for bankruptcy.
• You must be resident in Ireland i.e. 183 days of the taxation year or 280 days over two years.
• Your property is transferred to the Official Assignee in Bankruptcy who sells it and pays the creditors (banks, for example). 
• Your family home may be protected if a schedule of mortgage repayments can be agreed.
• A bankruptcy lasts for 3 years.
• Payments to creditors may last for 5 years if the available funds are more than reasonable living expenses.
• Unsecured debt is written-off.

Visit http://backontrack.ie/bankruptcy/ for information about the reasonable standard of living, the family home and the type of debt dealt with in a bankruptcy. 

Bankruptcy Period

In December 2013, the bankruptcy period in Ireland was reduced from 12 years to 3 years.  The bankrupt person also contributes any income greater than the reasonable living threshold towards the debt for up to 5 years. 

APIP has successfully supported a further reduction of the bankruptcy term to 1 year with the income contributions reduced to 3 years. This change in legislation is expected to be effective in the courts in December 2015.

Who to Contact

Tara Cheevers is authorised by the insolvency Service of Ireland to carry on practice as a Personal Insolvency Practitioner. Authorisation no. PB00012.  To discuss your options, contact us here.