If you cannot pay your debts, you are insolvent. Depending on your situation, Irish Law offers a number of possible solutions.
Insolvency does not automatically mean bankruptcy. Only a court can declare you bankrupt. There are options to avoid bankruptcy. Understanding which option is best for you requires’ both an understanding of Insolvency legislation and your situation.
Under the Personal Insolvency Act, 2012 you have three new options
- Debt Relief Notices where the courts declare you unable to pay your debts protecting you from a lender for three years.
- Debt Settlement Arrangements where a payment arrangement for unsecured debt is approved by the courts having been made by a Personal Insolvency Practitioner.
- Personal Insolvency Arrangements where a payment arrangement for both secured and unsecured debt is approved by the courts having been made by a Personal Insolvency Practitioner.
If you need to reorganise your business and financial affairs, both personal and corporate, to ensure the better protection for you and your family, the advice of a professional may make all the difference. You can avoid bankruptcy.
Bill Holohan, Senior Partner with Holohan Law has been active in the area of insolvency law for 30 years and is a member of the Council of the Irish Society of Insolvency Practitioners. Bill is also the Co- Author of numerous books on the subject.