Bankruptcy & Insolvency

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.

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.

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.

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.

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.