Will There Be A Payment Order After You Declare Bankruptcy?

Bankruptcy

 

Once you are adjudicated bankrupt you will furnish the Official Assignee with a Statement of Personal Interests.

This Statement will set out your income and your outgoings.

The Official Assignee has regard to the guidelines on Reasonable Living Expenditure needs as published by the Insolvency Service of Ireland. If your income is more than these guidelines the Official Assignee will ask you to agree to make payments to him for 3 years. The amount of this monthly payment will be the difference between your earnings and the guidelines.

If your income is at or below the guidelines no payments to the Official Assignee are required.

It is also possible to buy out the payments. So, for example, if the Official Assignee decided that you could afford €100 per month the full payment over 3 years would be €3600. The Official Assignee will agree to a discount on the €3600 if it is paid up front.

The benefit to having no payments or to buying out the payment is that you are no longer under review by the Official Assignee once you are discharged from bankruptcy. If you are making payments and your circumstances changes for the better, you are required to tell the Official Assignee. He can then require you to increase those payments during the remaining period.

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