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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Why not make a bank’s veto backfire on them?

There are two views that have been mentioned recently, one is that bankruptcy should have a reduced term to 1 year and the second is that banks have a veto on insolvency deals.

Perhaps the best way to resolve the issue isn’t to make bankruptcy one year for everybody, but rather to make it one year when and where a bank has rejected an insolvency solution put forward by a personal insolvency practitioner.

This would mean their decision to veto has a negative impact upon them, there are consequences to rejecting genuine offers. Obviously this would require some tweaking because individual cases and circumstances can become quite complex, but it would certainly help a creditor to sharpen their mind if they knew that a refusal could then have worse outcomes without affecting their contractual rights.

The good thing about this is that it would also channel more people into the proper route for dealing with debt (the official regulated insolvency one) and keep them out of what will probably become a scandal some day in the future (the informal channel …

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BankruptcyAdvice.ie our new bankruptcy offering

We have been in the debt solution space for many years now and we also offer personal insolvency solutions, but even with that there was a missing string to the bow which was bankruptcy.

Bankruptcy is a legal process and that is why we teamed up with one of Ireland’s experienced solicitors in this area to make the new joint venture. Anthony Joyce Solicitors in Dublin 8 have been working in the bankruptcy space for many years now and they also offer this solution in other jurisdictions.

BankruptcyAdvice.ie is a service which has two options DIYbankruptcy.ie which is a simple way of doing it for cheap by yourself with all of the instructions you may require as well as including a face to face meeting. The more involved option (typically for more complicated cases) is where you have various professionals with you throughout the process.

We have a unique service in this respect as we don’t just have qualified financial advisors, insolvency practitioners and solicitors. We also have compliance experts (to ensure …

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Morning Ireland: Business news with Brian Finn, speaking to Karl Deeter about bankruptcy

Brian Finn of RTE’s Business News spoke to Karl Deeter on Morning Ireland’s business news. He asked how the new changes to bankruptcy legislation would affect both borrowers and the property market.

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AIB debt writedowns? What does it mean?

The Irish Times carried an article that stated that AIB would write down some mortgage debt. What does this mean though and who will be the beneficiary?

To begin with, the write-downs should be no surprise, that is what the provisions AIB have been putting aside for several years are for, in fact, to date it’s almost like they weren’t playing fairly because they were booking provisions but not actually using them for what they were for.

Secondly, there are 33,000 AIB mortgages with problems, of these about 10,000 are ‘unsustainable’ and for those mortgages there will be losses booked – that is the ‘writedowns’ they are talking about in the main, but on the end of whatever solution comes out of if the person may not be the owner of the home.

Several solutions are things like ‘split mortgages’ which require no writedown, others will be ‘mortgage to rent’ which will, because in that process the ownership will change and that means crystallizing the loss. How many of the 10,000 will come out …

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Mortgage writedowns occurring, but how much?

We often hear that banks are writing down mortgage debts, but then the lenders themselves say ‘this isn’t happening’. For such a large rumour there is a surprising lack of evidence on either side of the argument, although we do see scant documentation indicating this in some cases.

If you click on the picture it will give you the larger version of the kind of documents we see from time to time. In this instance the client has said they owe over €200,000 but that they lender will take less than half of this, settling on a figure of c. €90,000 to clear in full or they’ll owe the difference if it goes for less.

The property seems to be at a significant discount to others in the same area, and unless the person in question is not being honest (we have no reason to think they aren’t) then the letter indicates over …

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