What is bankruptcy?
Bankruptcy is a formal High Court insolvency solution for people in debt over €20,000. During the bankruptcy process, the ownership of the person’s property and possessions transfer to the Official Assignee in Bankruptcy to be sold by him for the benefit of those to whom the individual owes debts (creditors).
When the person’s property is sold, the Official Assignee will make sure that the proceeds are shared out among creditors and any outstanding debt will be written off.
Bankruptcy proceedings are brought in the High Court. The application for a Bankruptcy Order is filed in the Office of the Examiner of the High Court.
Bankruptcy normally lasts for 1 year.
Main consequences of Bankruptcy
All unsecured debts are written off
Property and possessions transfers to the Official Assignee (except for essential assets up to a value of €6,000)
Any surplus income (income less reasonable living expenses) must be contributed towards debts for up to 3 years
If seeking credit above €650, a person must disclose that the are bankrupt
Discharged from bankruptcy is normally after 1 year. However, this term could be shorter if settlement with creditors is reached but it could also be extended if a person does not fully cooperate with the process.
If you feel Bankruptcy is your only option in dealing with your debt, contact R Hendy & Co and we can assess your situation and give you advice on what options are available to you. If we feel Bankruptcy is the best solution for you we can assist you with your application for Bankruptcy.
Contact R Hendy & Co today on 0402 29376 ext.1