Bankruptcy Advice

Bankruptcy in Ireland 

Bankruptcy in Ireland is an option for both debtors and creditors, however it is seldom used due to antiquated nature of the law and the costs involved.  The UK and USA have moderised there bankruptcy legislation to enable people with overwhelming debts to obtain access to the protection of the courts relatively easily.

While bankruptcy can be the answer for people with serious debt problems, it is the most extreme solution for dealing with debts and should only be considered as a last resort.

Getting Discharged from Bankruptcy in Ireland

Discharge form bankruptcy in Ireland can be achieved in a number of ways and these are set out below. It is worth noting however that enough funds must have been realised in the bankruptcy in order to cover the costs, fees, expenses and preferential debts arising in the bankruptcy.

Discharge From Bankruptcy After Payment Of Debts In Full

Where the debtor’s creditors have been paid in full, together with such interest as the court allows. Where the bankrupt’s property is sufficient to permit payment of interest at the rate payable on judgments, that rate will apply.

Discharge From Bankruptcy With Full Creditor Consent

A bankrupt can be discharged from their bankruptcy statues where all of the debtor’s unsecured creditors have consented to the discharge.

Discharge After Making Composition With Creditors

Where the debtor has provided the Official Assignee with the funds needed to meet a settlement (referred to as a Composition After Bankruptcy ) with their unsecured creditors – for a settlement to be effective, it must receive the support of at least sixty per cent in number and value of the unsecured creditors voting on it.

Discharge After Paying Fifty ‘Pence In The Pound’

Where the debtor’s property has been fully realised and his/her creditors have received fifty pence in the pound on their debts.

Discharge After Twelve Years
Where the bankruptcy has lasted for twelve years, the debtor’s property has been fully realised, and the court is satisfied that the debtor has disclosed any property acquired since bankruptcy and that it would be reasonable and proper to discharge the debtor from bankruptcy.

Further Advice

To discuss bankruptcy advice or other debt options please contact a money advisor on 01890 987 857 or complete the call me back request at the bottom of this page and an advisor will call you back at a time that is convient to you.

* With the draft of a new Personal Insolvency Bill there is set to be changes regarding Bankruptcy laws. The reformed Bankruptcy Act is to include the introduction of automatic discharge from bankruptcy, subject to certain conditions, after 3 years in place of the current 12 years.