Bankruptcy in

Ireland
Burak Fenerci
 Table of contents
01 02 03
What is Bankruptcy Legal Basis Authorities

04 05 06
Personal Insolvency Act Debt Settlement
Conclusion
2012 Arrangement
What is Bankruptcy?
Bankruptcy is a legal process that can
provide relief to those who are struggling
with debt.

Purpose of declaring of it is to give debtors a

financial "fresh start" from burdensome
debts.
 Legal Basis

The bankruptcy procedure for companies in

Ireland is governed by the Companies Act
2014 and the Bankruptcy Act 1988
How the procedure goes for companies?

Petition for
Bankruptcy Order
Bankruptcy

If the court is satisfied that the

A creditor or the company can file
company is insolvent, it will make
a petition for bankruptcy in the
a bankruptcy order. The order will
High Court. The petition must be
appoint a bankruptcy trustee,
supported by evidence that the
known as the Official Assignee,
company is unable to pay its
who will take control of the
debts.
company's assets and liabilities.
How the procedure goes for companies?

Realization of Assets

• The bankruptcy trustee will take an inventory of the company's assets and liabilities and will sell the assets to
pay off the creditors.
• The trustee will also investigate the company's affairs and may seek to recover any assets that were
improperly transferred or disposed of prior to the bankruptcy.
How the procedure goes for companies?

Discharge Restrictions
Once the trustee has realized all the company's assets, After discharge, the company will be subject to certain
paid off the creditors, and completed the investigation, restrictions, such as restrictions on acting as a director
the company will be discharged from bankruptcy. or carrying on certain types of business.
The discharge typically occurs after 12 months, but it
can be longer if the trustee needs more time to realize
assets or investigate the company's affairs.
How the procedure goes for individuals?

Application for
Bankruptcy

An individual can apply for bankruptcy by completing a form called a "petition for adjudication of bankruptcy"
and submitting it to the Insolvency Service of Ireland. The form must be accompanied by a statement of affairs
that lists the individual's assets and liabilities.
 Eligibility for individuals?

Eligibility

• An individual must owe at least €20,000 and be unable to pay their debts as they fall due.

• Additionally, they must have been living in Ireland or have conducted business in Ireland in the past year.

• The individual must also prove that they have made efforts to reach an agreement with their creditors.
Personal Insolvency Act 2012
Debt Relief Notice
A DRN provides debt relief
for individuals with
unsecured debts of up to
€35,000 who have no
available income or assets.
The individual must apply
through an approved
intermediary, and
approved, the debts are
written off after three years.
Debt Settlement Personal Insolvency
Arrangement Arrangement
A DSA provides debt relief
for individuals with A PIA provides debt relief for
unsecured debts of any individuals with secured and
amount who have a regular unsecured debts of any
income but are unable to amount who have a regular
meet their debts in full. The income but are unable to
individual must apply meet their debts in full. The
if through a Personal individual must apply
Insolvency Practitioner (PIP), through a PIP, and if
and if approved, the debts are approved, the debts are
restructured over a period of restructured over a period of
five years. up to six years.
Conclusion
It's important to note that
bankruptcy should be considered
a last resort and that there may be
other options available to
companies facing financial
difficulties, such as a voluntary
arrangement or examinership.
Also, it is not the best solution
for everyone
 Thanks!
Do you have any
questions?
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