Personal insolvency

The Personal Insolvency Act came into effect in December 2012. If you are affected by personal insolvency we are here to help.

How we can support you:

  • Provide personal insolvency advice.
  • Assist debtors in the preparation of a prescribed financial statement.
There are three types of personal insolvency arrangements possible, including
  • Debt Relief Notice (“DRN”) which addresses unsecured debt up to €20,000.
  • Debt Settlement Arrangements (“DSA”) addresses unsecured debt greater than €20,000.
  • Personal Insolvency Arrangements (“PIA”) addresses unsecured debt without a limit, and secured debt less than €3,000,000.

The Personal Insolvency Act also introduces reforms and softening of the bankruptcy law, which raise additional considerations for banks as creditors:

  • Automatic discharge from bankruptcy after 3 years rather than 12 years, subject to certain conditions. The bankruptcy period can be extended to a maximum of 8 years where the bankrupt has been non-cooperative or has not disclosed income or assets.
  • The court is empowered to order the bankrupt to make payments to creditors for up to 5 years.
  • If a petition is presented by a creditor, the Court shall consider whether a DSA or a PIA would be a more appropriate solution.
  • If a petition is presented by a debtor the debtor must provide an affidavit that he has made reasonable efforts to reach an arrangement with his creditors by proposing a DSA or PIA.
  • Certain pension arrangements may be carved out of the bankruptcy estate and may be unavailable to creditors.