A general introduction to bankruptcy:
Here at PIP Ltd we are compiling a series of blog posts based on the most common questions we get asked about bankruptcy. Over the coming weeks we will be answering questions. We endeavor to break them down into 3 sections:
- A general introduction to bankruptcy
- How do you declare bankrupt? What is the process?
- What happens during and after bankruptcy.
If you have any topics you would like us to include as a part of our series on bankruptcy email us at info@pipltd.ie and we will do our best to include them.
A general introduction to bankruptcy:
What is bankruptcy?
According to the ISI “Bankruptcy is a process where the ownership of an insolvent person’s property transfers to the Official Assignee in Bankruptcy to be sold by him for the benefit of those to whom the individual owes debts (creditors).” If you are going bankrupt all your assets are transferred to the official Assignee in Bankruptcy. This brings us on to the next question.
What is the role of the Official Assignee of Bankruptcy?
The role of the Official Assignee is to investigate the full extent of your property, sell or otherwise dispose of your property and distribute the proceeds to your creditors.
Who is the official assignee of bankruptcy?
Chris Lehane is the civil servant who serves as the Official Assignee in bankruptcy. He is a court appointed official who is put in charge of the property and assets of bankrupt individuals.
What does bankruptcy mean?
All assets are gone and all debts are gone, from the date of Adjudication.
How much debt do I need to have to go bankrupt?
An insolvent person needs to have over €20,000 debt both secured and unsecured
How much does it cost to declare bankruptcy?
Chris Lehane, on behalf of the Government charges €200 to open your case file and your intermediary, if you require one, will have their fees.
Is it possible to remain in your home after declaring bankruptcy?
Yes it is possible to remain in your home after Bankruptcy if you can pay the repayments which are agreed with your Mortgage holder.
How long does it take to go bankrupt?
Bankruptcy can be done within six weeks via high court proceedings.
How long does bankruptcy last?
Bankruptcy lasts one year in Ireland. Before 2013 it was 12 years so it is now a very popular option.
How do I apply for bankruptcy?
Both MABS and the ISI recommends that anyone thinking of applying for bankruptcy seek legal advice. We advise you to talk to a Personal Insolvency Practitioner. We are experts and can guide you through this process making it as a stress free as possible.
Click on the guides below to download further information about Bankruptcy.
