Insolvency Law at Ireland
Ireland's insolvency framework offers structured solutions for individuals and businesses facing financial difficulties. The system, established under the Personal Insolvency Act 2012, provides various mechanisms to address unsustainable debt. (Personal Insolvency Arrangements)
🧑⚖️ Personal Insolvency Options
Ireland provides three primary debt resolution procedures for individuals: (Personal insolvency options)
Debt Relief Notice (DRN)
Eligibility: For individuals with unsecured debts up to €35,000 and minimal income/assets.
Duration: 3 years.
Outcome: At the end of the period, qualifying debts are written off.
Application: Must be made through an Approved Intermediary (AI). (Personal insolvency options)
Debt Settlement Arrangement (DSA)
Eligibility: For individuals with unsecured debts exceeding €35,000.
Duration: Typically 5 years, extendable to 6 years.
Outcome: Debts are settled through agreed repayments.
Application: Must be made through a Personal Insolvency Practitioner (PIP). (gov.ie - Personal Insolvency Arrangements, Personal insolvency options)
Personal Insolvency Arrangement (PIA)
Eligibility: For individuals with secured debts up to €3 million (can be increased with creditor agreement).
Duration: Up to 6 years, extendable to 7 years.
Outcome: Combination of debt write-off and restructuring.
Application: Must be made through a PIP. (Personal insolvency options, Personal Insolvency Arrangements)
🏛️ Bankruptcy
Eligibility: Individuals with debts exceeding €20,000.
Duration: Typically 1 year.
Process: Initiated through the High Court.
Outcome: Discharge from debts after the bankruptcy period. (Personal insolvency options)
🏢 Corporate Insolvency
For businesses, Ireland offers several procedures:
Examinership: A court-supervised process allowing companies to restructure and continue operations.
Liquidation: The winding up of a company's affairs, distributing assets to creditors.
Receivership: Appointment of a receiver to manage and sell assets to satisfy debts.
🏢 Insolvency Service of Ireland (ISI)
The ISI is an independent statutory body established to: (gov.ie - About the Insolvency Service of Ireland)
Regulate and supervise personal insolvency arrangements.
Maintain registers of Debt Relief Notices, Debt Settlement Arrangements, and Personal Insolvency Arrangements. (gov.ie - About the Insolvency Service of Ireland)
Provide information and guidance to the public on insolvency options. (gov.ie - About the Insolvency Service of Ireland)
Authorise and regulate Personal Insolvency Practitioners and Approved Intermediaries. (Personal insolvency options)
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