Is Bankruptcy in Ireland An Option?

Unlike in many other countries such as the UK and USA where bankruptcy legislation has been modernised to enable people with overwhelming debts to obtain access to the protection of the courts relatively easily, Ireland's bankruptcy legislation is arguably out of date and in much need of modernisation.

A debtor does have the right to instigate a petition for bankruptcy at the court and likewise creditors can also start bankruptcy proceedings. If a debtor is unable to meet their repayment obligations to their creditors then the debtor may ask the court for a bankruptcy judgment provided that the individual has a realisable estate worth at least €1900.00.

Getting Discharged From Bankruptcy in Ireland

Because of the complexities of the current bankruptcy legislation in Ireland many people feel that obtaining a discharge from bankruptcy may realisticaly be complicated and as such prefer to deal with their debt problems without entering into the Irish bankruptcy process. Discharge form bankruptcy in Ireland can be achieved in a number of ways and these are set out below. It is worth noting however that enough funds must have been realised in the via the bankruptcy in order to cover the costs, fees, expenses and preferential debts arising in the bankruptcy.

Discharge After Twelve Years

Where the bankruptcy has lasted for twelve years, the debtor's property has been fully realised, and the court is satisfied that the debtor has disclosed any property acquired since bankruptcy and that it would be reasonable and proper to discharge the debtor from bankruptcy.

Discharge From Bankruptcy After Payment Of Debts In Full

Where the debtor's creditors have been paid in full, together with such interest as the court allows. Where the bankrupt's property is sufficient to permit payment of interest at the rate payable on judgments, that rate will apply .

Discharge From Bankruptcy With Full Creditor Consent

A bankrupt can be discharged from their bankruptcy statues where all of the debtor's unsecured creditors have consented to the discharge.

Discharge After Making Composition With Creditors

Where the debtor has provided the Official Assignee with the funds needed to meet a settlement (referred to as a Composition After Bankruptcy ) with their unsecured creditors - for a settlement to be effective, it must receive the support of at least sixty per cent in number and value of the unsecured creditors voting on it.

Discharge After Paying Fifty 'Pence In The Pound'

Where the debtor's property has been fully realised and his/her creditors have received fifty pence in the pound on their debts.

Further Advice

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