The ISI has published a Detailed Bankrupcty guide.This document provides detailed information on the implications and processes of bankruptcy in Ireland.  While it is written from a debtor’s perspective, it is relevant to all stakeholders.

Proof of Debt

All debts for inclusion in the bankruptcy process must be proven by filling in the following form - Proof of Debt Form (which will open at bottom of the screen)

Legislation

The main provisions of bankruptcy law are contained in the following Acts:

 

How does a creditor make a debtor bankrupt?

The High Court can make a debtor bankrupt at the request of a creditor. This request is made in a document called a petition (this is a sworn document which sets out the nature of your debts and promises that you will do various things such as attend the court hearing, advertise the court sitting and pay any fees or expenses of the Official Assignee).  This must be filed in the Office of the Examiner of the High Court.

When the petition is filed, the petitioning creditor undertakes to the court to advertise notice of the bankruptcy in the Iris Oifigiúil and a national daily newspaper*. The petitioner must also lodge €200 towards the costs and outlays of the bankruptcy with the Bankruptcy Division of the ISI and give an undertaking to the Official Assignee to cover any further costs and outlays which may be incurred.

Grounds for petition

A creditor may petition for bankruptcy against a debtor where the debtor has committed an act of bankruptcy within the previous three months. The most common acts of bankruptcy relied upon by a creditor are:

The Personal Insolvency Act 2012 has introduced a number of additional ‘acts of bankruptcy’. These are:

Petition requirements

For a creditor to be entitled to petition the court to make a debtor bankrupt, a number of conditions must be met. These include:


The debtor must be either resident in the State or within three years prior to presentation of the petition, have ordinarily resided, had a dwelling house or place of business, or carried on business within the State.

The creditor's petition must state whether any security (for example, a mortgage or a charge) is held by them in respect of the debt. If so, the creditor must indicate whether he/she intends to give up the security for the benefit of other creditors or put a value on their security.

Court

When the Court considers the creditor’s petition, it will have regard to the debtor’s assets and liabilities and will consider whether the debtor’s inability to pay his/her debts could be more appropriately dealt with by a Debt Settlement Arrangement or a Personal Insolvency Arrangement.

Where the Court considers either of these alternatives to be more appropriate, it may adjourn the hearing of the petition to allow the debtor the chance to enter one of these alternative arrangements.

*The Companies (Miscellaneous Provisions) Act 2013 contains a provision which provides an alternative to the requirement to advertise details of a petition for bankruptcy in a national newspaper.  The provision provides for a person to publish details of the bankruptcy on the ISI website, at no cost.