Brendan Burgess
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This is a work in progress - take professional advice before acting on anything in this thread
I have no first hand experience of this, so I am compiling this from my research. I would welcome any corrections or questions.
Consider first if Irish bankruptcy is right for you...
Would a Personal Insolvency Arrangement or a DSA be better?
Will you lose your job if you go bankrupt?
Would UK bankruptcy be a better option?
How will your partners and family be affected - joint owner of your properties; guarantors of your loans
First of all, do you qualify for bankruptcy?
Preparatory work
Hold off payment of your creditors to build up around €3,000 to fund the bankruptcy
Be very careful about whom you pay or you could be accused of showing preference to certain creditors.
Get your lenders' agreement to sell your properties - bankruptcy will be simpler if there are only unsecured debts
If you own a property with someone who will not be going bankrupt, enter into discussions with the lender about sorting this out now. After your bankruptcy, your partner will be responsible for the whole mortgage on their own. You might as well sell them your interest in it, or transfer the negative equity now.
If you have a guarantor on your mortgage, speak to them now.
Tell your creditors you will be applying for bankruptcy - try to get their agreement to an informal settlement first
If you can't get an informal agreement, try for a Debt Settlement Arrangement
If you can't get a DSA...
Step 1 - Get a Personal Insolvency Practitioner to issue a statement that a PIA or DSA has been impossible or is unlikely to work - Fee €1,000
Step 2 - Apply to the Circuit Court on Form... Fee €650
Step 3 - Place an ad (on the Insolvency Service website?)
Step 4 - Attend the court on the appointed day
Step 5 - The Judge will adjudicate you a bankrupt (or the judge may refuse or may adjourn)
I have no first hand experience of this, so I am compiling this from my research. I would welcome any corrections or questions.
Consider first if Irish bankruptcy is right for you...
Would a Personal Insolvency Arrangement or a DSA be better?
Will you lose your job if you go bankrupt?
Would UK bankruptcy be a better option?
How will your partners and family be affected - joint owner of your properties; guarantors of your loans
First of all, do you qualify for bankruptcy?
- You must be have at least €20,000 of creditors in excess of debtors.
- You must swear that you have made a reasonable effort to reach an appropriate Personal Insolvency Arrangement or Debt Settlement Arrangement
- The Court may adjourn the hearing to allow you an opportunity to enter into a PIA or a DSA.
Preparatory work
Hold off payment of your creditors to build up around €3,000 to fund the bankruptcy
Be very careful about whom you pay or you could be accused of showing preference to certain creditors.
Get your lenders' agreement to sell your properties - bankruptcy will be simpler if there are only unsecured debts
If you own a property with someone who will not be going bankrupt, enter into discussions with the lender about sorting this out now. After your bankruptcy, your partner will be responsible for the whole mortgage on their own. You might as well sell them your interest in it, or transfer the negative equity now.
If you have a guarantor on your mortgage, speak to them now.
Tell your creditors you will be applying for bankruptcy - try to get their agreement to an informal settlement first
If you can't get an informal agreement, try for a Debt Settlement Arrangement
If you can't get a DSA...
Step 1 - Get a Personal Insolvency Practitioner to issue a statement that a PIA or DSA has been impossible or is unlikely to work - Fee €1,000
Step 2 - Apply to the Circuit Court on Form... Fee €650
Step 3 - Place an ad (on the Insolvency Service website?)
Step 4 - Attend the court on the appointed day
Step 5 - The Judge will adjudicate you a bankrupt (or the judge may refuse or may adjourn)