The problems with debt are not limited to people who may face bankruptcy, it also applies to nations. In this video by Bloomberg it takes a look at some of the historical backgrounds to this and explains how the past lead to the financial present.
The Oireachtas Justice Committee is having an open consultation for people who want to give their view on changing the bankruptcy rules so that a person is discharged after 1 year rather than the present standard of 3 years.
The page with the details can be found here, it closes on the 19th of June.
Our view is that 1yr would be of benefit to the people involved and give some extra creditor compulsion to dealing with debtors. On the other hand, there may be concerns about creditor lead petitions as well as ‘payment orders’ that could still go well beyond the one year term.
We see regular headlines indicating that insolvency is only for the ‘well off’, this is simply not true. The group making this statement do have an interest in such a claim because their main source of funding is going to end soon and it may be that they want state money to fill the gap which is behind the call for a state sponsored solution.
Insolvency isn’t just for the well off, we have shown in the past that it’s actually creditors who pay for the various insolvency solutions, this is a fact of accounting, not of opinion.
Perhaps the greatest testament of insolvency isn’t the numbers opting for it, we know they are low, but the fact that banks suddenly (and not coincidentally) started doing serious deals with people once it became an option.
They also ask PIP’s to run the applications past them prior to going for a full protective cert and that gives them the ability to make a better offer direct to the client – again, …
We wrote an opinion piece in the Irish Independent about insolvency and how using some form of it will be required to make lasting debt solutions. It appeared in the paper at the start of the month:
Even detractors will start to sing off the Insolvency Service of Ireland hymn sheet. The change of attitude that is about to take place will be interesting to watch. People who did nothing other than put down personal insolvency solutions claiming they don’t work will soon be converting and turning to genuflect at its altar. Why? Because informal debt solutions alone have too many downsides, and they aren’t backed by insolvency legislation that gives defined start and end times or other set boundaries to the deals. For the companies doing informal deals there’s the new regulatory burden, which creates more administration in the process and drives up costs, which end up heaped on the already financially pressed people who need the help. The Central Bank authorisation process is both long and hard, and a further round of changes to requirements is due out …
One of the people we helped spoke to Keelin Shanley on the Today Show on RTE radio 1. In this clip you’ll hear her speaking to Rory about what lead him to use bankruptcy as a solution and his expectations for the future.
The Irish Times did the second installation of a person going through bankruptcy today.
Of note is how quick and effective it is on the day, the process is not surrounded with doom or darkness in terms of how the judge deals with people, it is humane, and brief, something to be commended as so much of the road to court 6 is paved with fear and harsh treatment.
We think Conor Pope did a good job of looking into a bankruptcy from start to finish, and wish to thank him for it.
The Irish Times did a story on a person looking to go for bankruptcy and mentioned us in the article.
Conor Pope did a great job of outlining the issues in general and in particular to Rory, but this line sums it “He owes €60,000 to half a dozen lenders including banks, credit unions and credit card companies – an absolute pittance in the scheme of things – but a debt of sufficient size to give him countless sleepless nights“.
While we can’t assure people don’t lose any more sleep, we can help them find a route to finality of the problem and that, rather than superfluous statements about social rights and wrongs is really what this all boils down to.
The Irish Independent ran an article today on bankruptcy and mentioned BankruptcyAdvice.ie in it. It focused on the fees that are being charged and how the promoters of New Beginning felt that they were offering value for the level of professional service they offer.
We agree that they are professionals and well equipped for this type of work, as for the costs, they aren’t in the same market at all times as our firm, we have a DIY bankruptcy option they are not offering, with them you only get a full service option.
They are however, regulated for debt advice whereas some competitors are not and some may do work cheaper or more expensive and not offer the same services so it’s difficult to make proper comparisons and for that reason you need to know what you are getting and paying for.
Being regulated by the Law Society (for solicitors), the Bar council (barristers) and the Central Bank (financial advisors) or ACCA (for accountants) means you can’t possiblty work as …
It is really unfortunate that upon bringing out new rules on bankruptcy that the cost of doing it went up! The costs will now be €650 for the official assignee (stays the same) stamp duty of €190 (almost doubles), €20 affadavit fee, then €50 to athe petition in ‘Iris Oifigiuil’.
The rump of the increase is in the stamp duty at the examiners office, this used to be €80 now it’s more than double that amount. The problem with this is that many people going bankrupt are on welfare and there is no simple path in some cases towards people on the dole being able to raise this money.
We have yet to see a case where it was impossible, often it means borrowing from relatives or getting friends to help out, selling a car or some other asset, but raising the costs just makes it that little bit tougher on people and means there is less money to pay for professional advice, something many of them would do well to obtain.
This week in a court presided over by Judge McGovern there were 11 self-adjudicated bankruptcies. The first six were represented by solicitors.
In the first petition, the Judge asked for proof of efforts to reach arrangements with creditors.
He emphasised that he needs to be satisfied that actual steps were taken to negotiate with all the creditors. The solicitor said they had included a letter from PIP stating that he had reviewed matters and the best options available was bankruptcy as they were below the income level for a PIA or DSA.
Judge McGovern said that a bald statement in the affidavit that reasonable efforts have been made is not enough. All unsecured creditors, not just the bank or main creditor, must be contacted.
In the first six cases, once the judge said he was happy to adjudicate the debtor bankrupt, the solicitor asked for three orders.
1.Order specifying the date of the statutory sitting
2.Order permitting the adjudication to be published on the ISI website as per the Companies (Miscellaneous Provisions) Act 2013.
3.Order dispensing with the requirement to …