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 net debt position exceeding €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 discharge usually happens after 1 year.
- Payments to creditors may last for 3 years, if the available funds are more than reasonable living expenses.
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.
Bankruptcy Period
In December 2015, the bankruptcy period in Ireland was reduced 1 year. The bankrupt person also contributes any income greater than the reasonable living threshold towards the debt for up to 3 years.
For further information about bankruptcy, download the Insolvency Service of Ireland's “Information about Bankruptcy” publication here.
Who to Contact
APIP has 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.
