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BANKRUPT NO MORE

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Recently, we discussed some proposed changes to bankruptcy terms in Ireland. We can now report that these legislative changes have been largely accepted by the government. These changes have been hailed as being one of the most positive changes to Irish bankruptcy law for the many people currently suffering from debt issues.

 

It has been reported recently that although these changes will be widely accepted, some minor changes may need to be made. As we previously stated, the main proposed change would be that the discharge term for bankruptcy is to be reduced from three years to one year. This would be a major change in Irish bankruptcy procedures and would allow for those individuals who have been made bankrupt to return to business far sooner than was previously possible.

 

An amendment has been suggested on the proposed document. It was originally stated that those who have been bankrupt for more than one year prior to legislation being passed would see their bankruptcy discharged after 3 months. It is suggested that the government may now amend this to six months. This will still allow for many people to have their bankruptcy period greatly shortened, and it is hoped we will then see many entrepreneurs surge back into the market.

 

Another major change to Irish bankruptcy proceedings is in relation to the seizure of family homes following bankruptcy. TD Willie Penrose who is the main driving force behind these changes has proposed in his bill that these properties must be sold within three years, or be returned.

 

There have been some whisperings of these changes making bankruptcy appear a more attractive option. IMHO Chief Executive David Hall has rubbished these claims stating that:

“Going bankrupt is a daunting process for anyone – subjecting yourself to having the knives and forks in your house counted by a third party to establish what asset value you have in your house.”

 

Indeed, the very idea of the word bankruptcy is an incredibly daunting notion for anyone to face. It is hoped, however that these new changes, whilst bringing Irish law into line with Northern Ireland and the UK, will also make the process somewhat less devastating. This perhaps will then assist in Irish recovery as we see some of our entrepreneurs and hard-working business owners who have fallen on hard times make a swifter return to business.

 

Once again, we hope that this clears up any confusion about the ongoing changes within bankruptcy law and procedures in Ireland. If you yourself are experiencing difficulty and would like to know more about the process, please don’t hesitate to give us a call here at DCA Accountants.

WHO YOU GONNA CALL? …BANKRUPTCY BUSTERS!

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Bankruptcy is not a word that fills anyone with a sense of glee, but sometimes it is the only option for both you and your business during hard times. As is often said in business, there certainly comes a time when it is best to cut your losses and move on. For many, this involves the necessity of filing for bankruptcy until such a time as your finances are once again in order. In the past, becoming bankrupt has often been a very stressful and arduous time. Fortunately, new reforms are set to be introduced which could change this process and make it a lot easier and about as pain free as it is possible for this task to be.

 

Taoiseach Enda Kenny has said that there will be reforms introduced which will reduce the period that an individual is bankrupt for from three years to one year. These reforms would require an amendment in the Personal Insolvency Act of 2015, a change which the Taoiseach is said to be strongly in favour of.

 

This amendment would bring Irish insolvency and bankruptcy procedures into line with those currently in practise in the UK and Northern Ireland. TD Willie Penrose has been a major driving force behind this proposed change stating that in his believe it is better that these people be allowed to return to making economic contributions after one year rather than being outside of the business world for three. Penrose states that these people could be entrepreneurs ready to re-enter the business world, but they cannot.

 

CEO of the Irish Mortgage Holders Organisation, David Hall has largely welcomed these proposed changes stating that:

“This development will be of huge benefit to those debtors who are seeking a fresh start and want to rid themselves of debt.”

 

Certainly, these changes will somewhat change the face of business in Ireland and allow more opportunity for change and the ability to move on at a faster pace from a period of business which may have been unsustainable for a great many reasons. As we have seen in the UK and Northern Ireland models of dealing with bankruptcy, this has not caused a great many extra financial issues and should be a good fit for the Irish system.

 

Whilst these new rules will make the process of applying for bankruptcy in Ireland somewhat less painful, it is advisable to seek professional assistance when doing so. Should you require any professional advice or guidance in a matter such as this please do not hesitate to contact us at DCA Accountants where we will be happy to assist and to guide you in the best direction for you and the brighter future of your business.