Bankruptcy may be an option for you if the insolvency solutions – Debt Relief Notice (DRN), Debt Settlement Arrangement (DSA) and Personal Insolvency Arrangement (PIA) – are not appropriate. A personal insolvency practitioner (PIP) will advise you on the different options and the most suitable solution for your debt.
Criteria & Process
- You must have a minimum debt of €20,000 to be considered for bankruptcy.
- You must be resident in Ireland i.e. 183 days of the taxation year or 280 days over two years.
- Your property is transferred to the Official Assignee in Bankruptcy who sells it and pays the creditors (banks, for example).
- Your family home may be protected if a schedule of mortgage repayments can be agreed.
- A bankruptcy lasts for 1 year.
- Payments to creditors may last for 3 years, if the available funds are more than reasonable living expenses.
- Unsecured debt is written-off.
Visit the Insolvency Service of Ireland (ISI) Back on Track website here for information about the reasonable standard of living, the family home and the type of debt dealt with in a bankruptcy.
In December 2013, the bankruptcy period in Ireland was reduced from 12 years to 3 years. In December 2015, the term was reduced further to 1 year. The bankrupt person also contributes any income greater than the reasonable living threshold towards the debt for up to 3 years (previously 5 years).
APIP lobbied for the reduction in the bankruptcy period from three years to one year - our "Submission to the Joint Committee of Justice, Defence and Equality on the Period for Bankruptcy" can be viewed here.
The change in legislation - the Bankruptcy (Amendment) Bill 2015 was signed into law on Christmas day in December 2015.
For further information about bankruptcy, download the Insolvency Service of Ireland's “Information about Bankruptcy” publication here.
Who to Contact
APIP has over 80 members (PIPs) nationwide who represent debtors (people in debt) and help them to return to solvency by finding solutions for their unsustainable debt. APIP members are authorised by the Insolvency Service of Ireland (ISI). To contact a PIP in your area today, click here.