How Does Bankruptcy Work in Ireland in 2017?

man considers filing for bankrupcy at his computerFiling for bankruptcy in Ireland in 2017 is a possibility for certain people whose insolvency cannot be overcome. If you – or someone you know -may be facing insolvency and considering declaring yourself bankrupt then it’s important to understand how bankruptcy works in Ireland.

This short article will provide a simple summary of bankruptcy procedures in Ireland by looking at three key areas: Eligibility for Bankruptcy, the bankruptcy process and the consequences of bankruptcy.

Let’s begin.

The 3 Criteria to Be Eligible for Bankruptcy in Ireland

  • In order to declare bankruptcy your debts must exceed your assets by at least €20,000.
  • The debtor must be insolvent, meaning that you are unable to satisfy creditors or discharge liabilities.
  • Before looking to declare yourself bankrupt you must first have attempted to resolve debt issue through Personal Insolvency.

The Bankruptcy Process in Ireland

  • The first step in the bankruptcy process is to complete a Statement of Affairs and a Statement of Personal Interests.
  • Them you will put forward an Application for bankruptcy to the High Court.
  • The final step is Adjudication.

 

The Consequences of Bankruptcy

Being legally declared bankrupt means that:

  • All if your debts are written off.
  • All of your assets (other than the necessaries of life) are transferred to the Official Assignee.
  • You may have to make payments to Official Assignee for up to 3 years following your declaration of bankruptcy.
  • You will be automatically discharged from Bankruptcy in 1 year.

 

There are a number of areas directly related to bankruptcy that you may have specific questions about. It’s important to know what you are getting into ahead of making a bankruptcy declaration and understand how being bankrupt will impact on different aspects of your personal and professional life.

I have many years experience handling bankruptcy applications and Personal Insolvency Agreements. The following are some of the most frequently asked questions around the subject of bankruptcy. I will be answering them with individual articles over the coming weeks. 

if you have another question please feel free to ask it in the comment box below or by sending me an email to info@newbeginning.ie and I will be sure to write an article and address it on this blog and add it to the  list below.

Bankruptcy in Ireland FAQs

What are the costs of bankruptcy in Ireland?

What are the consequences of bankruptcy for my family home?

How will my pension be affected by bankruptcy?

Will there be a payment order after becoming bankrupt?

What are the implications of bankruptcy on being a director of a company?

What are the consequences of declaring bankruptcy for co-borrowers or guarantors?

4 thoughts on “How Does Bankruptcy Work in Ireland in 2017?”

  1. Why are you not telling people the cost ? I know that it runs into thousands ….. as the government cost is only the tip of the ice berg the set of books required will cost a minimum of €6,000 as an accountant has to sign off on them …. so anyone looking at bankruptcy better have at least € 8,000, available good luck

    1. Mary thanks for the comment, good idea to discuss the costs of bankruptcy. I will address it here on the blog so keep an eye out or sign up to our newsletter so as not to miss it. Tanks Mary. Ross.

  2. What are the implications post bankruptcy regarding ones credit status and the possibility of applying for a loan/mortgage?

    1. Thanks for the comment Caroline, and good question. I will address it here on the blog for you. Join the Newsletter o keep an eye on our articles so as not to miss it. Thanks again, Ross.

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