Independent piece by us: Why insolvency will be the only game in town

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 …

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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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Irish Sun covers BankruptcyAdvice.ie

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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Our PIPs – find them on the register

We have a few PIPs working with BankruptcyAdvice.ie and you can find them on the Insolvency Service of Ireland website. There you will find Seamus Carrick (PC00107) and Anthony Joyce (PC00109) who are both fully regulated Personal Insolvency Practitioners.

That doesn’t factor in the legal, accountancy and financial advice experience we also have, but we think it’s important that you know you are dealing with people where their qualifications are recognised and registered. Some companies will put a junior in front of you, or the person heading the firm doesn’t have the relevant qualifications, we don’t operate like that, we don’t try to talk a good game, we are more interested in playing a good game.

 

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New bankruptcy guide and scenarios published today

The Insolvency Service of Ireland launched some new information today on the back of the changes announced in Bankruptcy law.

The two main documents are a ‘Debtors Guide to Bankruptcy‘ and a ‘Bankruptcy Scenarios‘ booklet which gives worked examples. These are both welcome publications in light of the new rules.

Some of the main changes we highlighted before were that the need to advertise in the national press will be removed – you will be able to do this on the ISI website in the future and also the lowering of the discharge date down to 3 years automatically (unless the Official Assignee has cause to do otherwise; for non-compliant bankrupts).

These documents are well worth reading before considering bankruptcy, along with the services we help to co-ordinate they will be good to keep on hand for reference purposes.

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New bankruptcy regime expected within days

We have been informed that the new bankruptcy changes are due to come into force in a matter of days. This will mean that the discharge period will be reduced to 3 years automatically (in line with European norms).

Another change that will come about is that people will be able to advertise intention to petition for bankruptcy on the Insolvency Service of Ireland website. up to now a national paper advertisement was required, but that is set to change and instead a person will be able to submit their name to the ISI website meaning a figure of several hundred euro can be saved in the process.

All things considered, the changes will bring about both a reduced cost to going bankrupt as well as the introduction of the reduced automatic discharge time. What this means for people in debt who are considering bankruptcy is that the older version (this ‘change’ has been flagged for some time and many commentators are of the mistaken opinion the current discharge time is 3yrs) is eradicated and the discharge will occur in …

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