Despite the stigma that still exists in Ireland, if you are considering bankruptcy you should immediately forget the notion that bankruptcy exists to punish you. The purpose of bankruptcy in the past, lasting for up to twelve years was certainly punitive, however recent changes to the bankruptcy laws in Ireland reflect a more modern approach to dealing with debt.
If you decide to petition for bankruptcy in Ireland today, the term lasts for up to three years at which point, if you have complied with your obligations, you will be automatically discharged. The purpose of the new regime is to give those in serious financial difficulty a fresh start, a clean slate.
Bankruptcy is a settlement of debts by an individual who is unable to repay their debts and can include both unsecured debts for example credit cards or personal loans, as well as secured debts such as mortgage debts. Filing for bankruptcy ensures that any assets you have (if any) are distributed fairly among creditors, and protects you from these creditors with immediate effect. It is a formal process adjudicated over by the High Court and supervised by the Insolvency Service of Ireland (ISI) for individuals who are unable to pay debts of more than €20,000.
There are other solutions which should be considered first, such as a Debt Settlement Arrangement (DSA) or Personal Insolvency Arrangement (PIA), or indeed informal arrangements with creditors, but where these attempts fail, you have bankruptcy as the option of last resort. Contact us today to get the best advice, and find out which option best suits your needs to finally sort out your debt problems.