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Bankruptcy

Bankruptcy is a legal process whereby all debts are written off in full and any assets belonging to the debtor (aside from the normal requirements of life) are transferred to the Official Assignee (OA). To be eligible to apply for your own bankruptcy you must meet 3 criteria:

  1. Your debts must exceed your assets by at least €20,000
  2. You must be insolvent
  3. You must first make reasonable efforts to reach an agreement with your creditors under the Personal Insolvency system.

The bankruptcy process lasts for 1 year.

If your income is above Insolvency Service of Ireland’s Reasonable Expenditure Guidelines (RLE) you may be required to make payments for up to 3 years.

Your family home can be sold in bankruptcy, but that needs the permission of the High Court. The OA will generally not seek to sell a family home if it is in negative equity. If the home is not sold it will transfer back to you after 3 years.

Pensions can be protected in the bankruptcy, you can speak to Nick in our Financial Services department about this.

There are certain restrictions in bankruptcy such as a restriction on being a company director during the 1 year period.

Our Debt Solution Services

  • In the debt solutions aspect of New Beginning, advisers meticulously go through each client's mortgage case and propose the best
  • Debt Negotiation

    Through our regulated debt management firm New Beginning offers advice and negotiation services on mortgage and commercial debts. Our experts
  • Insolvency

    Ireland now has the most powerful personal insolvency laws in the world. These new laws are designed to assist people
How much does it coast? Click Fees & Services for details
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Worried about debt?

We can help you to plan and become debt free.

What should I consider when I have accepted a restructured mortgage?

Many clients have dealt with the banks directly in recent years to restructure their mortgage debt and have been offered split mortgages, term extensions and part capital and interest deals from their lenders. While this keeps the roof over client’s heads it often leads to 2 main financial planning issues.

  1. Life Insurance Shortfalls
  2. Future Residual Debt

While the clear and obvious benefit to accepting one of these deals is that there is now no immediate threat to your home, it is important to complete the process prudently. By this I mean plan for the future and address the likely shortfall in your life insurance and consider how you are going to pay off the balance of your mortgage. The mortgage has not been written down, just restructured. You still have to pay it, just in a different way now.

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What customers say about us

Featured Articles
When I came to New Beginning I was at my wits end. I had been trying to deal with the banks myself and was getting nowhere. I met with someone at New Beginning who took me through the whole situation and gave possible outcomes I didn’t know existed! They took over my case and had it sorted within a few months. I now have a mortgage I can afford and am on the road to recovery!
The care and professionalism I experienced at New Beginning was unparalleled. They really took the time and energy to understand my situation to find the best solution. Their genuine passion and commitment to helping people in tough times was comforting and allowed me to focus a bit more attention to my family.
I attended a seminar held by New Beginning in Dublin and it really helped me understand more about how to deal with my situation.  They taught me about different strategies I could use to negotiate against the funds and banks and also about the different insolvency rules.  I learned so much that day and the best part was the seminar was all completely free!
I was struggling to deal with the banks and with my other unsecure debt and I didn’t really know what was going on. I decided I needed someone on the outside to have a look at my situation, that’s when I found New Beginning. I received professional advice tailored to my situation. We discussed all the possible options available and they recommended the best solution for me, which was bankruptcy. It’s such a relief knowing this time next year I will be out of bankruptcy and debt free.

Contact us to see how New Beginning can assist you further

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