# Can I go bankrupt?



## james j (20 Mar 2012)

I have debts with revenue about 55000  from a failed business a mortgage with 2 judgements on it of about 16000  house in negative equity of about 80000 and suppliers chasing me for 20000 .We are now receiving social welfare payments and have 2 court dates looking for judgements coming up .can i go bankrupt before this or is it an option


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## Bronte (20 Mar 2012)

Welcome to AAM James.  You cannot go bankrupt as you have no money.  If you are brought to court either they will try and put a judgment mortgage on your home, which is already in negative equity, so that's a complete waste of time for the bank or they will be looking for an instalment order, also a complete waste of time and money by the bank as you are on social welfare and the court will probably not order you to pay anything.


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## james j (20 Mar 2012)

Thanks for advice I just find it hard to see why they are chasing me so hard for something i havent got .It is also just a noose as that i would love to start back up in business and put into practice everything that was learned from last time but I just feel that the minute I start I will have people hounding me and probably the revenue sherif in aswell .If these judgements were got would that kind of put them to bed and let me start again


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## Bronte (20 Mar 2012)

We have to hope James that one of these days one of the bright Ministers in our governement actually take the time to enact the new insolvency legislation as a matter of urgency.

If you are a bright young man and have pleny of business ideas than I recommend that you go forthwith to the UK, you will be done and dusted bankruptcy wise in little over a year and come back and start afresh a new business, that would be of immense benefit to you, your family and the Irish economy.


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## james j (20 Mar 2012)

I wouldn't like to be holding my breath as I feel the government are trying to secure as many judgements as they can get quickly maybe this is there policy before they change the law.The UK is not really an option as i have 5 young children .,but i am sure I will think of something once the dust settles and clarity reigns


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## number7 (22 Mar 2012)

James j
it is perfectly legit to move yourself up north, establish an address and after 3 months file for bankruptcy in the courts. This is as a result of one of the treaties we signed up to as part of europe either nice or mastrict 2 i think.

my understanding is that once the courts have made you a bankrupt that you are free to live where ever you want. (your family does not have to move)

Discharge can in some cases be achieved in 3 - 4 months ( dont think you have to remain there for this, once the court makes you bankrupt, back to roi)

I am aware of someone currently with a rented room in newry that spends a few days a month there and will shortly file for bankruptcy. They are however running all of their finances and bank accounts from there as well. its pretty easy for them as they live within 30 minutes of the boarder.


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## james j (22 Mar 2012)

I think you are made sell your home sadly for me my wife also has her own debt issues so w would both have to go


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## Wibblywobbly (22 Mar 2012)

The court appoints an official assignee to manage your case, their job is primarily to gather an distribute your assets according to the rules.

If your home is in negative equity then it will not be of any interest to them they also have no power to act in Ireland as far as I am aware.

Couple of other points that my be of interest.

Mortgages bought by couples are generally issued on a jointly or severally liable basis, this means that if you go bankrupt the full debt will pass to the other half of the couple.

There is nothing stooping any couple jointly or one after the other going bankrupt.

It doesn't cost anything to ring a bankruptcy practitioner and get general advise on your case.


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## itsallwrong (25 Mar 2012)

How likely are a bank to force bankruptcy if you have a small amount of equity in your home? say barely enough to cover the debt?
Is a court likely to entertain the request to get you totally shafted for the sake of a small debt?
And then you are putting the hand out to the government for even more money like rent.
I'm sure the judges know that a rental allowance will cost the state dozens more than the debt over time.


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## Time (25 Mar 2012)

Banks do not bankrupt little people. It costs a bank around €5000 to bankrupt someone.

They use the tools of getting a judgement and then using an instalment order to get their pound of flesh.


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## Steve Thatcher (27 Mar 2012)

number7 said:


> James j
> it is perfectly legit to move yourself up north, establish an address and after 3 months file for bankruptcy in the courts. This is as a result of one of the treaties we signed up to as part of europe either nice or mastrict 2 i think.
> 
> my understanding is that once the courts have made you a bankrupt that you are free to live where ever you want. (your family does not have to move)
> ...


 
I really hope their paperwork stacks up because the bankruptcy judge in Belfast is refusing to make orders where she believes that the living in the North may be a sham.

In short your friends situation sounds a sham.

Let us know if this gets through please

Steve


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## Wibblywobbly (28 Mar 2012)

(name change: formerly number 7) Yes Steve I agree it is a sham, however that does not necessarily mean he will not be successful. 

How do you satisfy yourself that your clients are genuine?

I will let you know the outcome.


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## cormirl (3 Apr 2012)

Bronte said:


> Welcome to AAM James. You cannot go bankrupt as you have no money. If you are brought to court either they will try and put a judgment mortgage on your home, which is already in negative equity, so that's a complete waste of time for the bank or they will be looking for an instalment order, also a complete waste of time and money by the bank as you are on social welfare and the court will probably not order you to pay anything.


 
I don't think that you are right that he cannot go bankrupt because he has no money.Bankruptcy serves as a protection from his creditors,any assets he has will be disposed of to repay the creditors and if he goes through for the UK bankruptcy option he can be discharged after 12months.


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## Bronte (3 Apr 2012)

cormirl said:


> I don't think that you are right that he cannot go bankrupt because he has no money.Bankruptcy serves as a protection from his creditors,any assets he has will be disposed of to repay the creditors and if he goes through for the UK bankruptcy option he can be discharged after 12months.


 
I answered his question in relation to Ireland. He will not be able to go bankrupt in Ireland. He can though move to the UK and go through bankruptcy there. He mentions that as a couple they both have debts and that he doesn't feel the UK is an option as he has 5 children. Might be better to move lock stock and barrell to the UK nevertheless so that he can start again as soon as possible and become a productive member of society. Or he can wait for the new insolvency regime which doesn't look like it's coming any time soon and the banks are fighting it tooth and nail.  And we know the Irish government record on capitulating to banks.


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## cormirl (6 Apr 2012)

Bronte said:


> I answered his question in relation to Ireland. He will not be able to go bankrupt in Ireland. He can though move to the UK and go through bankruptcy there. He mentions that as a couple they both have debts and that he doesn't feel the UK is an option as he has 5 children. Might be better to move lock stock and barrell to the UK nevertheless so that he can start again as soon as possible and become a productive member of society. Or he can wait for the new insolvency regime which doesn't look like it's coming any time soon and the banks are fighting it tooth and nail.  And we know the Irish government record on capitulating to banks.



Yes,that makes sense....Make a new start and be done with it,probably easier said than done if you have a family to look after...


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