Bankruptcies

For almost forty years, Lavelle Partners have been advising all parties affected by bankruptcy. 

In addition to advising and representing individuals subject to bankruptcy proceedings, we have taken bankruptcy petitions on behalf of individual creditors and defended bankruptcy petitions on behalf of individuals.

We understand that there are often a wide range of factors which lead to bankruptcy and will always work to represent your best interests.  Bankruptcy can be deeply stressful for individuals due to the considerable uncertainty caused; therefore, our team will take the time to listen to all of the circumstances behind your case and will fully outline your legal options including the implications of bankruptcy for you.

What is Bankruptcy in Ireland?

Bankruptcy is the formal High Court process for making an individual insolvent (insolvency is the term typically used in reference to companies) who has debts in excess of €20,000. 

During the process, the ownership of the individual’s assets is passed to the Official Assignee in Bankruptcy who will seek to sell those assets in order to repay creditors.  Any debt which remains, including unsecured debt, will be written-off.

There are a number of implications which any individual considering bankruptcy should be aware of including:

• All property and possessions will transfer to the Official Assignee (except for essential assets up to a value of €6,000)
• Going forward, any surplus income (income less reasonable living expenses) must be used towards debts for up to three years
• The individual must disclose they are bankrupt if seeking credit above €650
• You will be discharged from bankruptcy typically after one year.  This may be less if a settlement with creditors is reached but, likewise, could be extended if the individual fails to co-operate with the process.

What is the Law regarding Bankruptcy in Ireland?

The Bankruptcy (Amendment) Act 2015 (the 2015 Act) brought into force a series of changes in 2016, including the reduction in the duration of bankruptcy from three years  to one year (this was twelves years up to 2013), the return of the bankrupt individual’s home to them after three years where possible and reducing the period of bankruptcy payment orders from five years to three years.

As such, the legislature has made amendments for individuals facing bankruptcy which makes the process shorter and less impactful.

In addition to the 2015 Act, the Personal Insolvency Act 2012 outlines other debt resolution mechanisms, including:

1. Debt Settlement Arrangement (DSA) – whereby an arrangement is made with creditors for the repayment of unsecured debt over a period of five years.
2. Personal Insolvency Arrangements – whereby an arrangement is made with creditors for the repayment or restructuring of secured debt (up to €3 million) over a period of six years.

Given the range of possible measures available to those in financial difficulty, it is imperative to seek specialist advice from a personal insolvency lawyer who can advise you of your legal options and the relative advantages and disadvantages of each.  Lavelle Partners’ insolvency team is renowned for its experience and level of expertise in this area of law and are well placed to advise and represent you.

Why choose Lavelle Partners to assist you with Bankruptcy?

• Lavelle Partners is recognised as one of Ireland’s leading insolvency and bankruptcy practices.  Our insolvency team is headed up by Managing Partner, Michael Lavelle.  Building on his own reputation as a leading insolvency expert for over thirty years, Michael has developed our bankruptcy and insolvency function as a top-tier practice, as reflected by the large number of landmark cases in which the firm has acted.
• Our insolvency lawyers are members of the Irish Society of Insolvency Practitioners.
• We provide expert advice across a range of bankruptcy matters.  Our insolvency lawyers have expert knowledge and experience in advising banking and other creditors.  Our firm is also instructed by leading insolvency practitioners in Dublin as well as foreign lawyers, accountants and creditors.
• The firm’s team of experienced insolvency lawyers is committed to achieving the best commercial outcome for our clients.
• Our lawyers are approachable, insightful, and pragmatic.  When it comes to handling bankruptcy matters, we will assess your situation objectively and provide a clear strategy.
• Lavelle Partners is a full-service law firm – meaning our clients benefit from advice and representation which is considered from all possible legal perspectives.  This affords our clients a considerable advantage in bankruptcy matters.

For further information regarding bankruptcy in Ireland, please contact Lavelle Partners in confidence on (01) 644 5800.