Bankruptcy is considered a last resort solution if you are unable to repay your debts. Going bankrupt can help you to regain control over your financial affairs, when you can no longer afford to pay your debts. To declare bankruptcy, your debts (secured or unsecured) must be more than your assets by at least €20,000.
Bankruptcy is a High Court Process that deals with unsecured debt (such as personal loans, credit card and business loans) and secured debt (such as mortgages) Most forms of unsecured debt are written off in bankruptcy. When you are made bankrupt, the ownership of your asset’s transfers to a person in the ISI called the Official Assignee.
You may not necessarily lose your home. You may be able to agree a schedule of mortgage payments with the bank and the Official Assignee to enable you to stay in your home and pay off your mortgage. Bankruptcy will normally last 1 year. If you have money left after your reasonable living expenses, you will give this to the Official Assignee to go towards your creditors for up to 3 years, to apply to have yourself made bankrupt, your PIP can walk you through the steps outlined in the Bankruptcy Section of the ISI website.
Your name will appear and remain on the Bankruptcy Register, kept in the office of the Examiner of the High Court, and anyone can check the Register. You cannot apply unless you have shown reasonable effort in trying to obtain a Debt Settlement Arrangement or a Personal Insolvency Arrangement.
Bankruptcy Application ISI
To begin the Bankruptcy application process you must transfer €220 to the Official Assignee in the Bankruptcy Division of the ISI ( Insolvency Service of Ireland). We can do this on your behalf .
“You cannot apply for bankruptcy unless you have shown
reasonable effort in trying to obtain a debt settlement arrangement
or a personal insolvency arrangement”
– Colm Arthur PIP
“I see it as my professional responsibility to explore
all options to restructure your debt with a specific focus
on ensuring that you remain in your family home“
– Colm Arthur PIP
Example of Bankruptcy
Mrs. lives with husband and child in their detached home. Mr. works fulltime. Mrs. out sick from work for over a year due to stress related illness because of financial situation.
Continued to pay mortgage and stay in family home but unable to pay anything to other debts. €2.5 million unsecured debt. After bankruptcy all non-family home unsecured debt written off. No payment orders. Returned to solvency after 1 year
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