The Personal Insolvency Act 2012 represents an overhaul of bankruptcy law in Ireland, bringing it more up to date with new legislation similar to that in other countries. In the past Bankruptcy in Ireland would not have been seen as a suitable option for dealing with your unaffordable debts, where as now the new changes allow it to be a much more suitable option. The new changes are detailed below. Do I Qualify?
- The maximum period for the duration of bankruptcy has been reduced from twelve to three years.
- To avail of the bankruptcy procedure, a debtor’s debts, (secured or unsecured) must exceed assets by at least €20,000.
- Reasonable efforts must have been made to enter into a Personal Insolvency Arrangement or a Debt Settlement Arrangement without success.
- You may be requested to contribute your surplus income (being the surplus amount after you pay your mortgage/rent and reasonable living expenses) towards your bankruptcy for a period of up to five years.
Bankruptcy proceedings can be very tedious and expensive. With the advertising costs involved and Solicitor’s and Counsel’s fees in relation to 2 separate High Court attendances (assuming the Bankruptcy is not appealed by the Debtor) the total costs will almost certainly exceed € 6,000.