Debt Solutions | Ireland | Debt Management

In Ireland there are not as many debt solutions available as there are in other countries such as the UK. There are 2 main debt solutions on offer to the Irish residents; they are Debt Management and Bankruptcy. Debt Management Ireland recommend Debt Management Plans as a very appropriate debt solution for most of our clients as Bankruptcy in Ireland is not really a solution and is more seen as a last resort when you can definitely not afford to pay back your debts.

Debt Management / Debt Management Plans

A Debt Management Plan also known as a DMP is a debt solution for people who cannot afford their debt repayments. It is an informal arrangement between you and your creditors that enables you to repay your debts at a rate which is affordable to you. We can manage your DMP on your behalf. We will contact all your creditors and speak to them on your behalf and work out the terms of the DMP agreement for you. A debt management plan is a great debt solution for a temporary period if you are struggling financially.

To read our full breakdown on Debt Management Plans click here…

Bankruptcy

What is Bankruptcy?

Bankruptcy is a procedure available when you are unable to pay your debts. Bankruptcy proceedings can only be commenced without obtaining judgement but it is preferable to have obtained judgement first. The object of bankruptcy law is to hand over assets, liabilities and affairs of the bankrupt to a Trustee or Assignee for the purposes of realising the bankrupt's assets and then distributing the proceeds of sale amongst the Creditors.

Bankruptcy proceedings can be very tedious and expensive. With the advertising costs involved and Solicitor's and Counsel's fees in relation to 2 separate High Court attendances (assuming the Bankruptcy is not appealed by the Debtor) the total costs will almost certainly exceed € 6,000.
The first step in bankruptcy proceedings is that an 'act of bankruptcy' must be committed by the Debtor and the Creditor must be able to prove it to the Court. If Judgement has not been obtained by the Creditor a formal notice of demand called 'particulars of demand and notice requiring payment prior to the issue of a bankruptcy summons' form must be forwarded to the Debtor by post. A certificate of posting should be obtained at the time of posting. The Debtor has 4 working days to respond to this notice.

If no response is received, the Creditor may proceed to apply to the Court for the issue of a bankruptcy summons. A bankruptcy summons will only be issued when it is proved that the Creditor has exhausted all other means of execution of the Judgement.
A bankruptcy summons must be served within 28 days of issue by delivering to the Debtor a sealed copy of the summons together with a Bankruptcy Summons affidavit. The summons server must endorse in the summons the day and date of service. Following the service the Debtor has a period of 14 days to to make a payment or to apply to the Court to have the summons dismissed.
If no such application is made and the Debtor has not paid the debt within the time limit, he is deemed to have committed an 'act of bankruptcy' and the Creditor is now in a position to petition to the High Court to adjudicate the Debtor bankrupt.

The Creditor's petition must be made within 3 months after the date the 'Act of Bankruptcy' has taken place. On presentation of the petition proving the debt and the act of bankruptcy, the Examiner's Office will allocate a date for the hearing of the petition. A copy of the petitiion must be served personally on the Debtor at least 7 clear days before the hearing.
If the petition is successful an Order of Adjudication is signed by the Bankruptcy Judge and a copy of this Order forwarded to a Bankruptcy Inspector who serves a copy on the bankrupt. The Bankrupt has 3 days from the date of service to appeal against the Order.
Once Adjudication occurs all property belonging to the Bankrupt automatically vests in the Official Assignee for the benefit of his Creditors and the Adjudication is published by the Petitioner in Irish Oifigiuil and at least 1 daily newspaper.

Avoid Bankruptcy

If you are experiencing problems with your creditors and do not know what to do, you should talk to an expert. Call us now 01 247 8899 / 1890 719 465 now to find out what your options are.

Other Debt Solutions

If you did not find the information you need on this page or are still unsure what debt solution is right for you the best thing to do is call one of our debt advisors now and explain your situation and they will be able to tell you what your best solution is.
Call now on 01 247 8899 / 1890 719 465 or get in touch via our contact page.

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Customer Testimonials

"I would highly recommend Debt Management Ireland to anyone who finds themselves in financial difficulties. I have DMI to thank for my sanity and the fact that I am able to sleep again. I found the staff to be non judgemental, more than helpful in every aspect of my situation and the fact that you have your own negotiator & advisor on hand wonderful. I am now paying my debt at a rate I can afford and have peace of mind."