How do you declare bankrupcy?

lomb · 25-01-2005 12:52PM

Bond-007 wrote:

I have found that taking the matter to a solictor won't help as most won't take on civil debt cases. I was told by a solicitor that having represenation in a district court for a debt case sends all the wrong signals to the judge, i.e. he has a lawyer how did he pay for it.

Under the bankrupcy act social welfare money cannot be taken to pay any debts. This is important to note.

He should not be afraid of the courts as they will only look badly on those that WON'T pay and not those that CAN'T pay. The banks should realise this and they will quickly see that they would be wasting their money and the courts time if the debtor has nothing.

I am currently helping a personal friend thru a similar ordeal and I have found the district court judges to be more than sympathic to his plight. One creditor was particularly strong in chasing for their money that the judge dismissed the case and told the solictor to go and chase bigger fish. The judge even suggested to go to the High court to seek protection orders from his creditors. He is in the final stages of getting bankrupcy sorted so he should be free and lear shortly.

he wont be free of anything for 10 years

spongebob · 25-01-2005 12:53PM

MABS can negotiate 2 types of agreement for him in the following sequence

1. A Standstill where his debts are frozen .
2. A Writeoff where most of (even 99.9%) of his debts are written off.

(if the creditors .....even one of them.... will not play ball then go with your plan by all means )

You help by writing everything down, listing the creditors/ amounts etc and helping the admin .

Then he pays the remaining amount with the creditors and is in the clear with no bankruptcy .

MABS will only do step 2 after step 1 and will need to be satisfied that there is full disclosure, EG that your mate will not inherit half of Killiney the day his writedowns come in or that there is an insurance policy to cash in. If the legwork is done for them they can be great .

Your friend will have to make the same kind of disclosures to the Bankrupcy Court mob anyway , its just that he may find it less stressful if a friend does it with him instead.

I fail to see how he has no interest in the house he once lived in, I woulda thought he got some sort of share after the youngest kid was 18 (the house may be sold after that ) . His eventual share may have to be pre divided amongst the creditors as part of the writedown deal but they can all wait till its sold anyway .

HTH

^%))(*{

Our man in Havana · 25-01-2005 12:54PM

Bankrupcy Lasts for 12 years after which he is discharged as a bankrupt. The banks would prefer to get 12x52x€10 instead of nothing.

zenith · 25-01-2005 12:56PM

alkjdflkajf wrote:

I fail to see how he has no interest in the house he once lived in, I woulda thought he got some sort of share after the youngest kid was 18 (the house may be sold after that ) . His eventual share may have to be pre divided amongst the creditors as part of the writedown deal but they can all wait till its sold anyway .

HTH

^%))(*{

He didn't own his own home.

zenith · 25-01-2005 12:59PM

alkjdflkajf wrote:

MABS can negotiate 2 types of agreement for him in the following sequence

1. A Standstill where his debts are frozen .
2. A Writeoff where most of (even 99.9%) of his debts are written off.

(if the creditors .....even one of them.... will not play ball then go with your plan by all means )

You help by writing everything down, listing the creditors/ amounts etc and helping the admin .

Then he pays the remaining amount with the creditors and is in the clear with no bankruptcy .

MABS will only do step 2 after step 1 and will need to be satisfied that there is full disclosure, EG that your mate will not inherit half of Killiney the day his writedowns come in or that there is an insurance policy to cash in. If the legwork is done for them they can be great .

Your friend will have to make the same kind of disclosures to the Bankrupcy Court mob anyway , its just that he may find it less stressful if a friend does it with him instead.

This is helpful, thanks. Understand point now that nothing to be lost by going to MABS, but on his own terms, with full possibility of still going nuclear if it's not going to work out. And he still needs to do his homework. Would like a little more info on the bankrupcy process, though, if anybody has it. What criteria should he use to determine whether MABS is right for him?

lomb · 25-01-2005 01:09PM

Bond-007 wrote:

Bankrupcy Lasts for 12 years after which he is discharged as a bankrupt. The banks would prefer to get 12x52x€10 instead of nothing.

Ur probably right its many years since i did my leaving cert

antoinolachtnai · 25-01-2005 01:46PM

Your friend is definitely right on one particular issue. He should not enter a deal with MABS unless he is planning to fully comply with it. There are a number of reasons for this. For one thing, he would break the trust with the adviser and undermine his credibility if he ends up in court. For another, making a contract without the intention of complying with it is reckless, and he could in theory end up in court on a criminal charge. Making a deal with MABS with the idea that he can file for bankruptcy later isn't necessary a great idea.

For this reason, your friend would be well advised to be very careful about making any commitments.

I wouldn't get a lawyer involved in the court proceedings or other stuff, but it would be a good idea to have someone he could go back to and get legal advice from.

The reason you find it difficult to get much information about bankruptcy in Ireland is because people hardly ever do it. It's just too onerous. It would make it difficult for him to even own a car, which could seriously comprimise his ability to get a job later.

The best source of information is going to be a solicitor or an accountant with insolvency experience. I can see how that probably isn't an option, so two sources for information about bankruptcy that I've tracked down might be:

Michael Forde, Bankruptcy Law in Ireland (Mercier Press, Dublin, 1990) (at least 50 euro)

Sanfey and Holohan, Bankruptcy Law and Practice in Ireland (Round Hall Press, Dublin, 1991) (around 200 euro)

(See http://www.ucc.ie/law/irishlaw/subjects/commercial.shtml)

As you can see from the price tags, these books are not really targeted at the down-at-heel. You might be able to get them through the local library, but it will probably take a few weeks.

noelo · 13-08-2009 03:05PM

zenith wrote: »

He didn't own his own home.

a guy i know is in the same boat,he owe's a fortune to the halifax and the credit union and doe's have a penny now after been made redundant a year ago,he moved out off the family home when his marrage fell apart now the house is for sale but she's not agreeing to any offer's she said saids she can syay there as long as! 2kids are still young so?....he'd love to sell the house to clear all dept and make a fresh start of life .but cant seem like every one wants:mad: money from him. he was considering B.R

leitrim lad · 13-08-2009 11:41PM

im no expert on personal bankruphsies ,but i do know alot about company law and companies going bankrupt,

none of mine ever did ,but they may in the future who knows,

but here goes,
a company is similar to a person, apart from it has directors, if the directors dont give a personal gauruntee or dont put any money into the company and it goes bust ,then the companies creditors may as well forget about what they are owed.
and to declare a company bankrupt ,it takes a high court sitting and a court order, proclaiming that the company is insolvent,and has no future of any kind good or bad.

but for a person i presume its a similar process, your personal creditors take you to court and issue a motion to declare you bankrupt.

however i know of people who were directors of companies that went bust for millions, and the next day they had a new company trading again , with bank accounts and facilities in the same bank as previous,

but i would advise not to go bankrupt, as it will be a shadow on you forever, now they say 10 years, but i dont beleive that, and you cannot even have a bank account if your bankrupt, therefore if you ever get oaid by electronic transfer ,or cheque ,your going to be left waiting a hell of a long time for your money,

i would advise that person to go to a solicitor or mediator, who has a degree in banking law, and bring all of their agreements to this expert, to test the legality of the contracts, ie, payment protection, where the agreements were signed, and other loopholes like this which i think your friend will find that 90% of his documents are probably illeagal , meaning that the banks gave him a contract that they shouldnt have, and he may now have grounds to challenge this contract and get the debt written off in good faith on the banks behalf , and it may not affect his future credit rating either.

alot of people panic when they come under pressure, but no matter what problem you have there is always someone some where who can help you resolve the problem, and this guy needs to find the person i advised ,and you never know it may give him a new life without going to the fires of hell for the rest of his life.

i know of alot of people who have already succeeded in doing what i just said, and its the bank who broke the law , if the contract is wrong , not you

Victor · 14-08-2009 06:12AM

leitrim lad wrote: »

you cannot even have a bank account if your bankrupt

This has been disputed, judges tend to allow people thier living expenses.

leitrim lad · 14-08-2009 01:09PM

you were aswell not have one as the pure basic ,the bank would supply to this situation, and the snotty noses looking down on you every time you go to make a lodgment ,

and facilities are totally out of the question for life, i would advise to get your contracts for the loans , or whatever they are gathered up and bring them to someone who knows how to read them properly, in banking language, as there is loopholes, that can wipe away the balance and clean your credit history on the icb if the contract is proven illeagal,

one fine example is payment protection, alot of bankers will tell you that the underwriters make it compulsary to take this on the loan,

however its just another way for them to make extra money, and it is against the law to make it compulsary on any form of loan, if you personally want it you can buy it, but it cannot be forced on you,

any contract that is signed under this kind of situation is illeagal, and void

How do you declare bankrupcy?

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