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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Can you get bankruptcy representation ‘for free’

This is something we are hearing about more often in the media, that some organisations are doing this ‘for free’ for their clients. We are highly skeptical of this message as in the first instance there is no ‘free’ bankruptcy process in Ireland.

There are certain expenses which will have to be paid irrespective of what advice you get, payments to the Official Assignee and other application fees that are set costs laid down by the various branches of the state such as the Examiners Office.

Then you have professional services such as solicitors, barristers, accountants, financial advisors and potentially others. That they would all work ‘for free’ is true in some instances, most of us in industry do a certain amount of pro-bono work, but it isn’t a business model without funding, meaning it can’t be broadlyl offered.

Some representation groups have said in the past that they work for free but time and again what we have seen is that the do charge, they may say they only charge in some cases, but after a while there are …

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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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An ‘avalanche of bankruptcies’? It may be the solution of choice in time.

Ross Maguire a barrister was quoted in the Sunday Independent stating that  “There is going to be an avalanche of people applying for bankruptcy through the courts. We have had hundreds and hundreds of people contacting us in the past few weeks inquiring about the new legislation” (via the advocacy group New Beginning).

“We are seeing an explosion of interest in bankruptcy. Each week we give seminars at which hundreds of people show up.

This is depressing news in one respect, but positive in when viewed as people considering a total financial reboot which will bring with it debt forgiveness. For too long people have tried to deal with and negotiate with banks that didn’t want to negotiate with their clients. Bankruptcy will fundamentally change this and change the dynamic.

For our part we hope to be part of that change, our bankruptcy service is designed to give people value for money while helping them make a difficult choice but not one that is tied to bankruptcy, rather one that will help them make the right choice – and that …

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Debt choices – there is really only three routes

Generally there are three routes you can use to deal with debt.

The first is an informal agreement, this can be done by you on your own, or you can hire an expert to deal with this on your behalf. Until this year the area of debt mediation was an unregulated one which meant that anybody could claim to be, and work as a debt mediator irrespective of their experience or formal qualifications.

We would advise people to only ever deal with a debt mediator who is regulated by the Central Bank. For our part we do have this service but it is not offered via rather you will have to independently get in touch with Irish Mortgage Brokers and speak to them if you want to pursue an informal deal using a regulated professional.

The second choice is insolvency. This has been a solution which has received a lot of press and for which several of our promoters have expertise, but it does have limitations and in a situation where a person doesn’t have enough left over income …

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