Bankruptcy news

There are new bankruptcies occuring and often in differnt jurisdictions to help resolve peoples indebtedness.

Some of the recent ones are Waterford developer Darryl Kavanagh who is looking for bankruptcy in the US. That case involves €17m of debt with assets of c. €4.7m. Shortfalls like that are hard to resolve other than with bankruptcy.

Closer to home there were some creditor lead bankruptcies involving two former spread betting executives. In this case the people involved were hoping to avoid bankruptcy sumons’s but the judge ruled against them and they were adjudicated bankrupts. Creditor petitions are still by far the most popular bankruptcy course, we are of the opinion it is because the general population has yet to see that it is a debt solution as well, not just some kind of punishment.

Another thing which is often overlooked in bankruptcy is the cost to the creditors, here is an update on

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Some solutions don’t work

While there is provision within the insolvency code to allow a personal insolvency application with more than €3,000,000 of debt to be considered, it is not highly likely that we will see much of this. The reason being that insolvency solutions are often predicated on some level of reasonable recovery.

This is the same as examinership for companies, so the individual must be a ‘going concern’, where they aren’t then bankruptcy becomes the more viable option which is perhaps also more appropriate.

So the message is simple, don’t try to use solutions that don’t or won’t work. Insolvency is often critiqued for any manner of reasons, but that is in part because it isn’t the actual appropriate solution.

Equally, bankruptcy may not be, we had a client this week who would be better off working with the bank then opting to go to the UK for an IVA style solution, the only thing we know for sure is that there are no forgone conclusions in dealing with debt and each case is unique.

So be weary of getting into what …

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When you go bankrupt you have to stick to the deal, here is why…

We have mentioned before how bankruptcy has some serious downsides, in a recent blog post we covered one case in particular which was back in the press again.

The alleged non-compliance issue regarding Paul Codd resulted in an arrest warrant which could have lead to a risk of further prison time but he now says he was coerced into giving his undertaking to avoid this because it could have resulted in him being there over Christmas.

His bankruptcy came about due to failure to satisfy a judgement in 2011 for more than a half a million euro. Mr. codd alleges that the police came and knocked down his door with a battering ram and it left his children traumatised.

His total estimated debts are thought to be close to €5m. What this story does is bring into focus some of the downsides of bankruptcy, in particular that of non-compliance, you simply can’t get around the decisions made by the Official Assignee.

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Sunday Times covers bankruptcy and mentions us 19th January 2014

We were pleased to see one of Ireland’s best known personal finance journalists Jill Kerby cover bankruptcy and mention our firm in the process.

Jill has long been an advocate of proactive solutions to debt and we think that our view on how bankruptcy and why it’s an important tool for debtors resonated with that outlook. Click on the article below to see the image in full scale.


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Irish Sun covers

The Irish Sun did a piece about us the content of the article is below:

PEOPLE struggling with massive debt have been told they can eradicate it through their own DIY bankruptcy. More than 1,200 people have sought help since Irish law was changed last month, with thousands more expected to go down that road this year.

But despite the numbers already signing up, the Government has just announced plans to overhaul the new personal insolvency regime to make it easier and cheaper.

The Irish Sun’s Mr Money Karl Deeter is part of a group who have set up the perfect tool for anyone seeking bankruptcy. He said: “There is often a protracted process when it comes to applying for bankruptcy but that doesn’t have to be the case. We predict in the course of the next year thousands of people will want to avail of the new legislation.

“Through DIY bankruptcy we can provide all the help and support a person needs. “Bankruptcy is non-negotiable so once you apply it’s …

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UK Regulator to consider how commercial borrowers are treated

It’s good to see commercial borrowers get a mention in how banks treat them, they tend to be the unsung victims who only qualify for any protection when their family homes fall into the mix of what will be lost in their debt solution.

The Financial Conduct Authority (FCA) have given an update on independent review of Royal Bank of Scotland’s treatment of business customers in financial difficulty


The Financial Conduct Authority (FCA) has appointed Promontory Financial Group and Mazars to conduct an independent skilled persons report under section 166 of the Financial Services and Markets Act (FSMA) 2000.

The report will examine Royal Bank of Scotland’s (RBS) treatment of business customers in financial difficulty and consider allegations of poor practice set out in the report by Dr Lawrence Tomlinson and referenced in Sir Andrew Large’s report.

The first stage of the review will consider RBS’ treatment of a sample of customers referred to its Global Restructuring Group. This will include some cases where customers have already raised concerns with Dr Tomlinson, the Department of Business, Innovation and Skills …

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Expert Group on Repossessions – what does it mean?

The Expert Group on Repossessions has submitted its report which was part of the 9th Troika review. It outlined some of the problems with the repossession process on the side of both borrowers and banks and made some suggestions on how the process could work better.

Far from being a free for all on repossessions as some have envisaged, it places much blame on banks and suggests standardised documentation for the courts so that there is some commonality across the banks operations when it comes to court.

There was also a rejection of thresholds and minimum payments which was pushing back on Troika suggestions on the matter.

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Is ‘free’ better or does it just cost less?

Normally when somebody is good at something they don’t do it for free, that isn’t to say they never offer their talents for free at times, or at their own discretion, but not all the time.

There are plenty of ‘free solutions’ for people in many areas, we have free hospitals and yet half the population pay for health insurance. There is free debt help through long running organisations like MABS and yet people still opt to come to private operators to get the solutions they need.

And that is why we made a decision from the outset to focus on a low cost rather than an unsustainable ‘free’ model. We value our time and the years we spent becoming experts and in turn we sell those talents at the lowest price we can in order to help the maximum number of clients possible.

On that basis we have a large team, people with huge levels of experience, and a commitment to respond to you quicker than other people will so that this is as easy a process as it …

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