Neo Financial Solutions

Personal Insolvency Or Bankruptcy?

Personal Insolvency may not be the best option for nearly 70% of people with financial difficulties.

Paul C Carroll Accountant NEO Financial Solutions                                   01 4370908

As we have heard over the past few weeks the way the personal insolvency process is set up currently it will not be possible for everyone who is insolvent to use the processes.

So what is available for them?

Well there are lots of options available and coming available the most notable is the bankruptcy option where new rules are to be introduced by the minister for justice before the end of the year.

The main new provisions of the bankruptcy process will be the reduction of the time in bankruptcy going from 12 years to 3 years. Also there will not be an automatic discharge from bankruptcy after the 3 years.

These changes to the bankruptcy law will come some way towards making the current personal insolvency processes of either 5 or 6 years (and up to 7 Years) un attractive to those who have significant financial difficulties.

So the bankruptcy process lasts for 3 years while the persona solvency process is up to 7 years.

Personal Insolvency Restrictions


To make a monthly payment of up to 7 years If any payment  max 5 years
Restrictions on your borrowing for 7 years Max 3 years
You have to give up any increase in income over €500 per month to creditors for up 7 years Max 3 years
Abide to the ISI reasonable living standards (RLS)for up to 7 Max 3 years
Be subject to the annual review by a PIP No annual review
Have your home loan write down subject to a 20 year claw back No such claw back

Download the Bankruptcy Guide Here

So if you are considering a solution to financial difficulties look at all of the options including bankruptcy.

More information available from Paul C Carroll Accountant 01 437 0908.

NEO Financial Solutions