Bankruptcy can seem like a drastic course of action to take, but often it can be the most realistic and helpful option available to help you clear your debts in an effective manner. That said, it can still be a difficult decision to make, and when faced with the possibility, it’s important that you talk to a professional who has extensive experience in the field. When you call the team at Anthony & Joyce Co., we will discuss every option available to you, examine the pros and cons of each course of action, and discuss the matter until you have all the facts you need to make the decision confidently. Pick up the phone to talk to our Dublin 8 based solicitors, or, if you’d prefer, read over some of our bankruptcy tabs and use the form to get in touch today.
Anthony Joyce, the principal solicitor of our firm, has been a vocal proponent of advancing bankruptcy law in Ireland for many years. As such, our team of Dublin bankruptcy solicitors are more than suitably qualified to advise if it’s an appropriate solution for you. Furthermore, should you decide to engage our service, we can ensure that your case is handled responsibly and that you get the best possible result.
When deciding whether Bankruptcy is the best option for you to pursue, it’s worth learning about some of the benefits is has over the other insolvency options. Insolvency is defined as when a person’s assets are worth less than their liabilities or when a person cannot pay their debts as they fall due. Bankruptcy is the ultimate legal mechanisms to take a person from insolvency to solvency because it does not require the consent / agreement of the creditor. The other insolvency solutions are either by way of an informal agreement by negotiation or formal agreement through a Personal Insolvency Practitioner (PIP). The formal solutions for debts over €35,000 are either a Personal Insolvency Arrangement (PIA) or a Debt Settlement Arrangement (DSA). If there is a surplus over the reasonable living expenses then the PIA or DSA may last between 5 and 7 years with annual reviews. In bankruptcy this period is 3 years. The benefit of bankruptcy is that creditors have NO RIGHT to windfall claw back after one year, while with insolvency they have the right to do so for up to twenty years in a PIA / DSA.
Nevertheless, bankruptcy may also have additional negative consequences to consider.
The main reason people wish to avoid bankruptcy is that there is a risk that you might loose the family home. If there is equity in the family home, the official assignee may seek to sell the interest in the family home. This is why a formal arrangement might be preferred to take away the uncertainty. If there is very little or no equity in the family home and the repayments are manageable then the family home can be kept out of the bankruptcy despite the debtor availing of the benefits of bankruptcy. Certain professions / employment contracts could be terminated as a result of bankruptcy. If there is a change in your financial circumstances throughout the bankruptcy year then you are obliged to inform the Official Assignee’s office in the Insolvency Service of Ireland (ISI).
Anthony Joyce & Co. are a long standing voice in bankruptcy in Ireland and that is in no small part thanks to our namesake who has been on record since 2009 in calling for realistic updates to the system.
Thankfully, Bankruptcy in Ireland recently changed when the Bankruptcy (Amendment) Act 2015, was signed into law by President Michael D. Higgins on Christmas Day, 25 December 2015. The Act is now the tip of the arrow of an arsenal of insolvency solutions to free debtors from their creditors. However, it also punishes any debtors who seek to “game the system.”
The main changes in the Act from when Minister for Justice and Equality, Frances Fitzgerald TD signed the commencement order on Friday 29th January 2016 are as follows:
Reducing the normal duration of bankruptcy in Ireland from 3 years to 1 year (up to December 2013 it was 12 years).
Returning ownership of the bankrupt person’s home to them after 3 years (subject to any outstanding mortgage) unless it must be sold to pay creditors.
Reducing the maximum duration of bankruptcy payment orders from 5 years to 3 years, except in cases of non-co-operation or concealment of assets.
Extending the duration of bankruptcy in cases of non-co-operation or concealment. Streamlining and clarifying the processes of bankruptcy in Ireland.
While these changes are very welcome, unfortunately we still have a huge insolvency overhang in Ireland and this drag on the economy will remain a live issue for many years to come no matter what government we have. The bankruptcy solicitors at Anthony Joyce aren’t just committed to calling for further changes in the law, but most importantly, are committed to helping you find a satisfactory resolution within the system.
Our team of Dublin bankruptcy solicitors are communicative and passionate, so when you decide to work out a bankruptcy with us, you’ll understand exactly what’s happening each step along the way, and be able to make informed and well educated decisions.