What is Bankruptcy?

Bankruptcy is a process where the ownership of an insolvent person’s property/assets transfers to the Official Assignee (OA) in Bankruptcy to be sold by OA for the benefit of the person’s creditors.

When the person’s property & assets are sold, the OA will make sure that the proceeds are shared out among the person’s creditors and any outstanding debt thereafter will be written off.

Bankruptcy in Ireland
Before someone can apply to make themselves bankrupt in Ireland, the person must show they have made reasonable efforts to apply for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA) using the services of a Personal Insolvency Practitioner (PIP) within the MARP framework.

How long does bankruptcy last?

• With the change in legislation on the 29th of January 2016, Bankruptcy will now last for one year.If you have money left over after what is defined as a reasonable standard of living,you will have to contribute that remaining money to the Official Assignee for a period of up to three years and they will transfer it to your creditors. This is known as an ‘Income Payment Order’.
• Usually, after one year you will be discharged from bankruptcy and all of your debts will be written off. You will then be solvent and able to regain some financial independence.
• This period could be shorter if you can come to a settlement with your creditors.
• If you do not co-operate or if you fail to disclose all of your property then the period can be extended.
• Ownership of your unsold property will remain with the Official Assignee until the property is sold.

Alternatives to Bankruptcy

Before someone can apply to make themselves bankrupt, the person must show they have made reasonable efforts to apply for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA).

Call Denis Healy on 061 633326 or email us to discuss your options.