Filing 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.
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 firstname.lastname@example.org 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
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?