- Bankruptcy, Insolvency & Debt Solutions
Navigating personal or commercial insolvency can be overwhelming, but it offers a fresh start. At Catherine Allison & Co, we provide strategic, and compassionate advice to individuals facing serious debt issues, with specialist expertise in cross-border insolvency.
Our Expertise & Credentials
Catherine Allison is a highly experienced legal advisor in personal insolvency and holds a recognised Insolvency Law qualification. She is one of the few legal practitioners who has successfully completed the Personal Insolvency Practitioner (PIP) exam set by the Law Society of Ireland in conjunction with the Insolvency Service of Ireland (ISI).
- Authorisation: Catherine Allison is authorised by the Insolvency Service of Ireland (ISI) to carry on practice as a Personal Insolvency Practitioner In Ireland.
We focus on finding positive and structured solutions for individuals and their homes, including negotiating with banks and creditors.
| Service Area | Ireland (RoI) | Multi-Jurisdictional (NI, England, Wales) |
| Bankruptcy | We secure Self-Adjudicated Bankruptcy under the modernised Irish regime. We were the first firm in Ireland to successfully obtain the first six Irish Bankruptcy Orders under the new Insolvency Act 2012. | We have obtained a substantial number of UK & Northern Ireland Bankruptcies and advise on the complex rules for establishing a Centre of Main Interest (“COMI”) in the UK to avail of those jurisdictions’ bankruptcy laws. |
| Insolvency Arrangements | We offer advice on formal debt restructuring under the ISI regime: Debt Settlement Arrangements (DSA’s) and Personal Insolvency Arrangements (PIA’s). | N/A (These are specific to Irish Law) |
| Home Protection | We specialise in helping to save family homes from repossession through legal and negotiated restructuring. | We advise on the implications of bankruptcy for property in all jurisdictions. |
| Negotiated Solutions | Negotiating Debt Settlement Arrangements with creditors, voluntary consent sales, and restructuring existing bank loans. | Advising on voluntary consent sales for multi-jurisdictional property assets. |
Modern Irish Bankruptcy & Home Protection
The legal landscape in Ireland has significantly modernised, making bankruptcy a much less punitive solution:
- Reduced Duration: Under the Bankruptcy (Amendment) Act 2015, the standard bankruptcy period has been reduced from three years to a minimum of one year (effective from January 29, 2016).
- Income Payments: The income payment period (where a portion of income is paid to the Official Assignee) has been reduced from five years to three years.
- Protecting the Family Home: A key change provides for the revesting of family homes in debtors where the Official Assignee has not initiated proceedings for the sale of the property within three years of the adjudication. This change aims to protect the Principal Private Residence, enhancing the debtor’s negotiating position with mortgage providers, even following bankruptcy.
“Abhaile Scheme” Appeals
We are a key legal resource on the government’s “Abhaile Scheme” legal aid panel for insolvency appeals involving the Principal Private Residence (PPR).
- We have a successful track record in securing appeals, frequently resulting in mortgages being written down to the market value of the property, providing a lifeline for individuals struggling with negative equity.
FREQUENTLY ASKED QUESTIONS
- What is the minimum period for bankruptcy in Ireland now?
The bankruptcy period in the Republic of Ireland is now reduced to a minimum of one year (since January 2016). This is a significant reduction from the previous three-year period and is part of the legislative changes designed to offer a faster fresh start.
- What is a PIA and a DSA? These are formal debt restructuring options under the Insolvency Service of Ireland (ISI):
- PIA (Personal Insolvency Arrangement): Designed for individuals with secured debt (like a mortgage) and unsecured debt, allowing for a restructure of both to enable the person to remain in their home.
- DSA (Debt Settlement Arrangement): Designed for individuals with only unsecured debts (like credit cards, personal loans), allowing for a compromise with creditors, usually involving partial payment over a fixed term.
- What is the “Abhaile Scheme” appeal process you assist with?
The “Abhaile Scheme” provides state-funded legal advice for certain insolvency matters. We assist clients with the PIA appeal process, particularly where the Principal Private Residence (PPR) is involved. We fight to ensure the mortgage write-down or arrangement reflects the true market value of the property, helping clients retain their homes.
- How does the bankruptcy process protect the family home?
The Bankruptcy (Amendment) Act 2015 introduced a key protection: if the Official Assignee (the person managing the bankruptcy) does not take legal action to sell the family home within three years of the bankruptcy order, the home automatically revests (returns) to the debtor. This provides substantial protection for the Principal Private Residence.
- Why would someone choose UK Bankruptcy over Irish Bankruptcy?
While the Irish bankruptcy term is now competitive at one year, individuals sometimes choose the UK path (especially in Northern Ireland or England) due to:
-
- Slightly different criteria for entry.
- Specific differences in the treatment of family assets or certain debts.
- A desire for the process to be administered in a location closer to their current residence or creditors.
- If I go bankrupt in the UK, does it cover my debts in Ireland?
Generally, yes. Under EU regulations (which still broadly apply to insolvency cases post-Brexit), a valid bankruptcy order obtained in one EU jurisdiction is recognised across all other member states. This means a bankruptcy order in England or Wales usually covers debts owed to Irish banks and creditors, providing a “worldwide” debt discharge.
