With Bankruptcy you can completely walk away, get your debt wiped and it can all be done within six weeks via High Court proceedings. This is where there is no alternative or way to manage the debt or keep to assets.

Bankruptcy is a potential option for individuals whose debts (including secured debt such as mortgage debt and unsecured debt such as bank loans or credit cards) amount to more than €35,000.

Bankruptcy is a legal process which lasts for 12 months if your income is modest or 36 months if your income is above average, after which a person is discharged from all their debts and their assets (subject to some exclusions). The Debtor may be required to make payments for a further period.

Two types of bankruptcy

Involuntary Bankruptcy is when you are unable or refuse to repay your debt and are declared bankrupt as a result of a formal legal process which results in the High Court bankruptcy order.Creditors can apply to have a person declared bankrupt.

Voluntary Bankruptcy is when a Debtor applies in their own right to be declared bankrupt as their debts are greater than their assets.

In the event of a Bankruptcy (voluntary or involuntary) the assets belonging to the Debtor are given to the Trustee who is responsible for managing your Bankruptcy (an Insolvency Practitioner or an Official Receiver) who will realise those assets in order to make payments to your Creditors.

Advantages of Bankruptcy

  • It offers you a fresh start and peace of mind if you have no prospect of paying your debt otherwise
  • You will be discharged from bankruptcy after 12 months and your debts will be written off
  • It prevents Creditors from harassing you over unpaid debt
  • You will be allowed to retain essential assets and personal possessions

Disadvantages of Bankruptcy

  • Bankruptcy will remain on your credit file forever.
  • Your name will be included on a register held by ISI, the independent government body for tackling debt problems, which is publicly available
  • However, only limited details are shown and someone would have to actively search by name to find any information. Media published details of bankruptcies in the past but this is rare now.
  • It may affect your employment, depending on your profession or the type of employment you might take up

Why talk to PIP Ltd about Bankruptcy?

debt-solutionsHere at PIP Ltd we are qualified, professional financial advisors, regulated by the Insolvency Service of Ireland and the Institute of Chartered Accountants, and work with individuals and families with unmanageable and stressful debts in order to help them regain their solvency. We work with you to find a solution for your debt. We have over 20 years experience in this area.

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Click on the guides below to download further information about Bankruptcy.

information about bankruptcy after-bankruptcy-guide-ISI


William Fitzpatrick is authorised by the Insolvency Service of Ireland to carry on practice as a Personal Insolvency Practitioner