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Almost 800 People Discharged From Bankruptcy

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Almost 800 People Discharged From Bankruptcy

793 people were discharged from bankruptcy in Ireland on the 29th of July 2016. These people are the very first group to qualify for a faster discharge from bankruptcy under the changes made to the bankruptcy laws last year.

 

According to the news the Insolvency Service of Ireland welcomed the fact that almost 800 people would be released from bankruptcy under the new one year term which applied to anyone made bankrupt since 29th of July 2015. The 793 bankrupts will be able to start again from today “without the burden of unsustainable debt”, commented Lorcan O’Connor the Director of the Insolvency Service of Ireland.

 

Ireland’s bankruptcy laws have been radically overhauled in less than three years. Up to 2013, it took people 12 years to qualify for a discharge from bankruptcy which was a like a life sentence.

 

The Insolvency laws in Ireland were very old fashioned compared to other countries in the EU. The 12 year rule was one of the longest restrictions in the EU so the new changes to the bankruptcy legislation were badly needed. The Bankruptcy term was cut to three years from 12 years in 2013 but the three year term was quickly criticised as being restrictive before it was changed last year.

 

The UK has had the 1 year bankruptcy term in place since April 2004 and lots of Irish people were heading to the north and the UK to live there for a few years to avail of this 1 year bankruptcy term.

 

It’s great to see that Irish people can have the same fresh start as other people struggling with debt in other countries and now they don’t have to leave Ireland to get the debt help they need.

 

The Personal Insolvency Act 2012 has made major changes to how Irish people will be able to move on from debt. Before if you were in debt you didn’t have many options at all and being in debt could last for 12 years or longer.

 

We now have debt solutions available that will reduce your monthly payments on your credit cards, loans or mortgage and will write off debt you can’t afford to pay if you are insolvent (unable to pay your debts as they fall due).

 

Here is more information on the debt write off solutions now available, you maybe be eligible for one of these solutions below if you are unable to pay your debts as they fall due:

 

Debt Relief Notice 

Formal agreement that gives debt relief to people who have little or no disposable income or assets which they could use to repay what they owe. This is a debt settlement solution to clear less than €35,000 of debt. It enables eligible insolvent debtors to write off their debts where they can prove they are not in a position to repay their debt and it is unlikely their financial situation will improve in the next 3 years.

 

 

Debt Settlement Arrangement
Formal agreement where a percentage of the debt is paid and the creditors agree to write off any debt outstanding. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years. If you owe more than €20,000 and have unsecured debt such as credit cards, loans and overdrafts and are insolvent then a Debt Settlement Arrangement could be the right solution to help your clear your debts.

 

 

Personal Insolvency Arrangement

Formal agreement that includes secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. This debt solution was brought in by the Government to help people deal with unaffordable secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts)

 

 

Bankruptcy 

A high court process to clear all your debts if you have little or no money available to repay your creditors. Before you consider applying for bankruptcy you must have explored the alternative solutions to bankruptcy which includes a Debt Settlement Arrangement, Personal Insolvency Arrangement and Debt Relief Notice. Unsecured and secured debt such as mortgages for family homes or buy to let properties, business loans and credit card loans can be included in bankruptcy.

 

 

It’s really good to see that anyone burdened with debt has lots of different solutions now available to them.

 

If you are struggling to pay to your credit cards, loans or mortgage please don’t worry as there is now help available.  We can arrange a Free appointment for you with a Personal Insolvency Practitioner who will able to see if you are eligible for a debt solution, just give us a call on 01 4434125 today.

 

 

R.McGonnell 29th August 2016

 

 

 

 

 

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