Below are some case studies on how bankruptcy can relieve financial pressure by individuals or companies in Ireland. Phone our bankruptcy solicitors in Dublin on 01 5313494 to arrange a suitablility assessment.
Bankruptcy Case Study - David
David had a retail business until a downturn in the economy forced him to close his business in 2011. He was self-employed, and had guaranteed a number of his business debts personally. His total debts were approximately €650,000, and there were 22 creditors affected. Separately, David was paying his mortgage on time, however the house was worth less than the mortgage owed.
Three years on from the closure of his business, he was still getting weekly calls from his creditors, many of whom were threatening legal action against him, and threatening to take charges over his home.
Following a discussion with us, we evaluated his income and expenditure, and found that as he was only working in a low paid job, and his wife was working part-time, he could not afford to offer anything to his creditors, and that bankruptcy was the most suitable option for him. We prepared the paperwork, and six weeks later, David was declared bankrupt in the high court.
He continues to pay the mortgage on his home, and when he emerges from bankruptcy, he will still keep ownership of his house. As his wife was not involved in any of the business debts, she did not have to go bankrupt. The phone calls and legal threats have stopped, and his creditors cannot take any further action against him.
Bankruptcy Case Study - Sinead
Sinead is a single mother of two, who had a good job until two years ago, when the company she worked for was forced to close. Until her job ended, she was able to manage her repayments, but now has outstanding debts of €55,000, owed to three different creditors, with no means of meeting her repayments. As she was renting privately, she did not have to worry about losing her home, but she was surviving on social welfare payments only.
As Sinead could not offer a proposal such as a debt settlement arrangement to her creditors, because of her limited income, it was decided was the best way to deal with her debt. Her family provided her with the funds to go bankrupt, and very soon afterwards, this was declared in the high court.
Sinead has since secured part-time work, and while her financial situation has improved somewhat, her income is still below ISI Reasonable Living Expense guidelines, and therefore she does not have to give any of her new income to her creditors.