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.