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 …