Bell & Company have commented regularly on Personal Bankruptcy in Northern Ireland. It can prove to be a useful tool for borrowers whose debts are so significant that there is no route to negotiate with lenders. Providing the Client’s circumstances align, Personal Bankruptcy can “clear the decks” and the individual can start again. We regularly assist individuals going through Personal Bankruptcy in Northern Ireland.

Conversely, the Bankruptcy Legislation in Republic of Ireland has been complex for some time. Under the previous Legislation those declared Bankrupt where held in Bankruptcy for 3 years and a possible Income Payment Order would last 5 years. Speaking from our experiences in the Republic of Ireland a lack of suitable Personal Bankruptcy options has meant many borrowers who have defaulted on financial products for some time have not been able to proceed with Bankruptcy.

Furthermore, those who had no option but to go Bankrupt have found it very difficult to recover given they are declared Bankrupt for 3 years!

The new Legislation in the Republic of Ireland brings about the following key changes:
1. Reduced duration of Bankruptcy to 1 year. However, the term will be extended for non-cooperation or concealment by Bankrupt individuals.
2. Maximum duration of Payment Order has now been reduced to 3 years. Again non-cooperating or Bankrupt individuals concealing information will find this term extended.
3. Bankruptcy Fees have been reduced greatly.
4. The Act allows for Automatic re-vestment of the home in the discharged Bankrupt 3 years after the Bankruptcy adjudication, if the Official Assignee has not sold it (or applied for a Court order to do so) within that period. (Section 8)
5. The Process has been streamlined removing the additional Statutory Court Sitting.
Other changes have also been made to prevent “Bankruptcy Tourism’” to Northern Ireland and make Bankruptcy a more accessible option for individuals heavily indebted with no other option.
The Bankruptcy (Amendment) Act 2015, was signed into law on 25 December 2015 with the new changes are expected to commence early this year.

The Independent Insolvency team at Bell & Company are working to fully understand the ramifications and changes under the new Legislation so we can give the best advice to those in the Republic of Ireland who need to consider Personal Bankruptcy. The team also intend to travel to Dublin to meet Insolvency Service Ireland (ISI) to discuss the changes further.

If you are feeling under pressure from debt and do not know how to approach your debt burden than please call Bell & Company today on 02895 217373. Our team can discuss Corporate Debt, Secured Debt, Unsecured Debt and offer independent insolvency advice tailored to your circumstances. We look forward to welcoming you at our office for a FREE INITIAL CONSULTATION.

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