Caught declaring false bankruptcy

Last year marked one of the busiest years for the Insolvency Service of Ireland due to the large number of cases they examined in relation to bankruptcy. With at least 210 cases seeming somewhat suspicious, this independent statutory body had to dig deeply into financial and asset related records of every bankrupt person. 

In order to be eligible for bankruptcy declaration in Ireland, you must fulfill three main requirements. The first one is that your debts must exceed your assets by €20,000. Assets are both financial and physical; some examples include stocks, pension funds, receivables, homes, cars, exc. 

Many of the issues that the Insolvency Service of Ireland has seen in relation to this part of bankruptcy declaration is that many people who are declaring bankruptcy are attempting to keep some of the assets that are most important to them by illegally transferring the ownership to a family member or close friend. 

The asset cannot be leveraged by the bankrupter in the repayment of loans if it is not under their name, which is why this it is now being …

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Credit union caps

The change in the economic climate of Ireland in the last few months has caused many money lending institutions to change their policies. Credit unions are among the most common to change, with the current amount totaling 36 unions all across the state.

The largest adjustment to these businesses are focused around savings accounts of current members. People who are utilizing these saving tools are now being asked to keep their savings below a certain amount.

Some of the caps imposed on these deposit accounts range from €15,000 to €40,000, causing major problems for many of the current users. If an account is above the cap amount, the account owner is required to find an alternative place to store these additional funds in less than a month.

One of the largest draws towards credit unions for people is the ability to get higher interest rates on savings and lower interest rates on loans. High interest rates can be very beneficial on savings but without a significant amount of funds able to be held in an account you …

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DEAR CLID

This is a useful little acronym in accountancy, you may well learn it when studying financial accounting. It has to do with how you either debit (dr) or credit (cr) an account depending on the type of transaction you are considering.

So ‘DEAR’ stands for ‘Debit any Expense, Asset or Reduction in Liabilities’

and ‘CLID’ stands for ‘Credit any Liability, Income or Decrease in Assets’.

Knowing these will help you make the right choice in nearly all of the journal entries you might make, so if for instance you had a sale for €400 and you put the money in the bank it would be fair to say that

1. the sale is an income (therefore credit ‘sales’) and 2. the cash paid to you is an asset (debit bank or cash).

The idea of placing this money in different named accounts can be tricky once you move beyond a simple cash sale. For instance, if you sold something on credit you would have a ‘trade receivables’ account to debit and you still credit ‘sales’, but only upon payment of …

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