Irish Bankruptcy Laws

D

dewdrop

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Not so long ago there was a clamour in some quarters that Bankers should be hanged. Now people are saying our bankruptcy laws are too penal and people should be free to start again in 1/3 years. We are a funny nation!
 
Problem is that is nearly impossible in this country to bankrupt someone, in the UK there are about 10,000 a month - here about 10 a year!
 
Luckycharm said:
Problem is that is nearly impossible in this country to bankrupt someone
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Well Seanie did manage to bankrupt the country, it started at 1.5bn, then 4bn, then 24bn and now we stand at 33bn. Anyway, I am sure he will not be stuck for a few bob (as know to plebs) and once it is finished, he can get in a few more rounds of golf each week.
 
Luckycharm said:
Problem is that is nearly impossible in this country to bankrupt someone, in the UK there are about 10,000 a month - here about 10 a year!
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It is not nearly impossible at all. The banks are unwilling to bankrupt anyone as they must pay all the legal and other fees related to the bankruptcy. These would amount to a fair few thousand over time. Once they have bankrupted the person, they will be there fighting amoungst the other creditors for the scraps that make up the bankrupts estate. In the end after spending all that money on legal fees they may end up with a pittance i.e. less than their outlay.

A bank has to be 100% sure before they attempt to bankrupt anyone that:
(a) The person has loads of assets that can be sold to cover all the debts and,
(b) Those assets when sold will cover all of the costs and will give the bank the maximum return for their investment in the bankruptcy.

Now you see why it is very unpopular from the banks point of view? This is why they prefer to eek out a small amount monthly through instalment orders and the threat of committal to prison rather than waste money on bankruptcy.
 
Moral Ethos said:
Now you see why it is very unpopular from the banks point of view? This is why they prefer to eek out a small amount monthly through instalment orders and the threat of committal to prison rather than waste money on bankruptcy.
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I thought you couldn't go to prison for unpaid debts in this country any more
 
Moral Ethos said:
It is not nearly impossible at all. The banks are unwilling to bankrupt anyone as they must pay all the legal and other fees related to the bankruptcy. These would amount to a fair few thousand over time. Once they have bankrupted the person, they will be there fighting amoungst the other creditors for the scraps that make up the bankrupts estate. In the end after spending all that money on legal fees they may end up with a pittance i.e. less than their outlay.

A bank has to be 100% sure before they attempt to bankrupt anyone that:
(a) The person has loads of assets that can be sold to cover all the debts and,
(b) Those assets when sold will cover all of the costs and will give the bank the maximum return for their investment in the bankruptcy.

Now you see why it is very unpopular from the banks point of view? This is why they prefer to eek out a small amount monthly through instalment orders and the threat of committal to prison rather than waste money on bankruptcy.
Click to expand...

Bankruptcy is where the value of your assets is less than the value of your debts. If you can cover all the debts, then you are not bankrupt! (Edited).
 
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