Bankruptcy in Ireland

What is Bankruptcy?

Bankruptcy is a situation when you are unable to pay your debts and it is legally declared either by yourself or the creditors that you owe money too. Bankruptcy is usually a last resort for people or businesses who are struggling to pay their debts. In bankruptcy your debts are cleared but you may have to hand over your assets such as house, properties, cars, valuables etc in order to pay off as much of the debt as possible.

Bankruptcy can be expensive with costs for solicitors’ and Counsel’s costing around €6,000 or more. There are 2 ways you can be made bankrupt. You can make yourself bankrupt or the creditors that you owe money too can apply to make you bankrupt. If your creditors intend to make you bankrupt they will issue you with a formal notice called ‘Particulars of Demand and Notice’ to you by the post. You will then have 4 days to respond to this notice. If you do not respond to this they will then apply to the court for the issue of a Bankruptcy Summons. This summons will only be issued when it has been proved by your creditor that has tried every means of getting back the debt from you with no success.

A bankruptcy summons must be served within 28 days of issue by delivering to the Debtor a sealed copy of the summons together with a Bankruptcy Summons affidavit. The summons server must endorse in the summons the day and date of service. Following the service of the summons you have a period of 14 days to make a payment or to apply to the Court to have the bankruptcy summons dismissed.
If you do not apply to have the bankruptcy dismissed or pay the debt within the time limit, you are deemed to have committed an 'act of bankruptcy' and your Creditor will then be in a position to petition to the High Court to make you bankrupt. The Creditor's petition must be made within 3 months after the date that your 'act of bankruptcy' has taken place.

If the bankruptcy petition is successful an Order of Adjudication is signed by the Bankruptcy Judge and a copy of this Order is forwarded to a Bankruptcy Inspector who will serve you with a copy of your bankruptcy. You have 3 days from the date of service to appeal against the Order. When you are declared bankrupt your details will be placed on a Bankruptcy Register, which is a public document and can be viewed by the public, and also the details of your bankruptcy may be advertised in the local newspapers. Anyone who you have been involved with financially will be informed of your Bankruptcy. This includes, Banks, Building Societies, Mortgage Companies, Loan Companies, HP Companies, Your Landlord, Creditors and any Pension and Insurance Companies.

Avoiding Bankruptcy

Many people believe that bankruptcy is their final and only choice. However, Debt Freedom Ireland may be able to offer you other debt solutions to resolve your debt issues. Bankruptcy may not be your only option. Call us now on 1890 719 465 for further advice on what debt solutions are available to you.