For over
thirty years, Lavelle Partners have been advising all parties affected by bankruptcy. In addition to advising and representing
individuals subject to bankruptcy proceedings, we have taken bankruptcy
petitions on behalf of individual creditors and defended bankruptcy petitions
on behalf of individuals.
We
understand that there are often a wide range of factors which lead to bankruptcy
and will always work to represent your best interests. Bankruptcy can be deeply stressful for
individuals due to the considerable uncertainty caused; therefore, our team
will take the time to listen to all of the circumstances behind your case and
will fully outline your legal options including the implications of bankruptcy for
you.
What is Bankruptcy in Ireland?
Bankruptcy
is the formal High Court process for making an individual insolvent (insolvency
is the term typically used in reference to companies) who has debts in excess
of €20,000.
During
the process, the ownership of the individual’s assets is passed to the Official
Assignee in Bankruptcy who will seek to sell those assets in order to repay
creditors. Any debt which remains,
including unsecured debt, will be written-off.
There are
a number of implications which any individual considering bankruptcy should be
aware of including:
- All property and possessions will transfer to the Official Assignee
(except for essential assets up to a value of €6,000)
- Going forward, any surplus income (income less reasonable living expenses) must be used towards debts for up to three years
- The individual must disclose they are bankrupt if seeking credit above
€650
- You will be discharged from bankruptcy typically after one year. This may be less if a settlement with
creditors is reached but, likewise, could be extended if the individual fails
to co-operate with the process.
What is the Law regarding Bankruptcy in Ireland?
The
Bankruptcy (Amendment) Act 2015 (the 2015 Act) brought into force a series of
changes in 2016, including the reduction in the duration of bankruptcy from three
years to one year (this was twelves years
up to 2013), the return of the bankrupt individual’s home to them after three
years where possible and reducing the period of bankruptcy payment orders from five
years to three years.
As such,
the legislature has made amendments for individuals facing bankruptcy which makes
the process shorter and less impactful.
In addition
to the 2015 Act, the Personal Insolvency Act 2012 outlines other debt
resolution mechanisms, including:
- Debt Settlement
Arrangement (DSA) – whereby an arrangement is made with creditors for the
repayment of unsecured debt over a period of five years.
- Personal Insolvency Arrangements – whereby an arrangement is made with
creditors for the repayment or restructuring of secured debt (up to €3 million)
over a period of six years.
Given
the range of possible measures available to those in financial difficulty, it
is imperative to seek specialist advice from a personal insolvency lawyer who
can advise you of your legal options and the relative advantages and
disadvantages of each. Lavelle Partners’
insolvency team is renowned for its experience and level of expertise in this
area of law and are well placed to advise and represent you.
Why choose Lavelle Partners to assist you with Bankruptcy?
- Lavelle
Partners is recognised as one of Ireland’s leading insolvency and bankruptcy
practices. Our insolvency team is headed
up by Managing Partner, Michael Lavelle.
Building on his own reputation as a leading insolvency expert for over
thirty years, Michael has developed our bankruptcy and insolvency function as a
top-tier practice, as reflected by the large number of landmark cases in which
the firm has acted.
- Our
insolvency lawyers are members of the Irish Society of Insolvency Practitioners.
- We
provide expert advice across a range of bankruptcy matters. Our insolvency lawyers have expert knowledge
and experience in advising banking and other creditors. Our firm is also instructed by leading insolvency
practitioners in Dublin as well as foreign lawyers, accountants and creditors.
- The
firm’s team of experienced insolvency lawyers is committed to achieving the
best commercial outcome for our clients.
- Our
lawyers are approachable, insightful, and pragmatic. When it comes to handling bankruptcy matters, we will assess your situation
objectively and provide a clear strategy.
- Lavelle
Partners is a full-service law firm – meaning our clients benefit from advice
and representation which is considered from all possible legal
perspectives. This affords our clients a
considerable advantage in bankruptcy matters.
For further information regarding bankruptcy in Ireland,
please contact Lavelle Partners in confidence on (01) 644 5800.
