The personal bankruptcy in Ireland or colloquially called Ireland bankruptcy is the short and sustainable way to strip your debts. With the UK’s rejection of a European Union referendum on 23 June 2016, the future of EU bankruptcy in the UK is uncertain. The Republic of Ireland, on the other hand, closes this gap. The insolvency law was essentially taken over by the United Kingdom, thus the way for an exceptionally fast debt relief procedure is also clear in the future. Find out more about the procedure for EU insolvency proceedings in Ireland, the necessary conditions and decide for yourself whether you want to benefit from the EU’s most liberal insolvency law. In our opinion, the bankruptcy in Ireland is the royal road to debt relief.
Key facts about the Ireland bankruptcy
In order to be eligible for private insolvency in Ireland, evidence of the point of residence should be provided in the Republic of Ireland. This means that an apartment, social security number, bank account, utility bills, and evidence of daily living, as well as an employment relationship, must be available for at least six months at the time of application. This is the unconditional basis for the representation of the center of life. In addition, appointments to the doctor, dentist and many other evidence of the permanent food point to provide.
The actual procedure takes just 12 months . With the opening of the proceedings, an official of the court (official assignee) undertakes any communication with the creditors. All assets are distributed equally by the Official Assignee to all creditors. If there is neither a notable insolvency estate nor a distributable income that exceeds the subsistence level, the process ends after only 12 months and the coveted discharge of residual debt takes place.
After that, the remainder of the exemption must be over-certified, apostilled and professionally translated into German. As a result, the residual debt exemption decision will be sent to the creditors and they must recognize the verdict. Our German-speaking lawyer is a pioneer of EU insolvency and has decades of experience and explicit expertise. There is no better legal counsel in European insolvency law!
Is Ireland bankruptcy the right procedure for me?
Bankruptcy in Ireland is a formal trial before the High Court (similar to the German District Court) and is a way to settle debts available to individuals with debts starting at € 20,000. However, before this path can be taken, the alternative options contained in the Personal Insolvency Act 2012, such as out-of-court debt settlement, must be exhausted. If these alternatives are not applicable, Irish personal bankruptcy may be the right procedure for you.
What advantages does the bankruptcy in Ireland offer me?
Shortest procedure in Europe
The bankruptcy in Ireland offers the shortest procedure time of just 12 months in the entire EU.
No claimants from Germany
Once Irish personal bankruptcy proceedings have been opened, creditors in Germany can not file a claim against you. This requires that your residence has been demonstrably relocated and the new jurisdiction is in Ireland. Then the Irish bankruptcy court declares itself competent and the proceedings are opened. You no longer need to fear German insolvency proceedings.
No refusal reasons
Most of the German refusal exemptions do not exist in Ireland.
They finally come to rest again
You sleep much more quietly, for several reasons: As soon as you are logged out in Germany, the creditors are suddenly very quiet. The motivation to nachzustehlen practically goes to zero.
No employment obligation
No employment obligation (compulsory labor), as in Germany.
Reasonable standard of living
Insolvency proceedings leave enough money for a decent standard of living
Account with VISA card
The days when you did not get an account with a bank are over. In Ireland, even small amounts are paid by credit card. Anyone who wants to participate in modern consumer life may be human again in Ireland.
Dublin is worth living
When you settle in Dublin, you will enjoy the convenience of an English-speaking stay abroad and a good infrastructure. An exciting time is ahead.
No tax liability in Germany
If you move residence correctly, you will lose your unlimited tax liability in Ireland after half a year in Ireland and will only be taxed in the Federal Republic of Germany in a limited way. This brings many exciting advantages.
What does the bankruptcy procedure in Ireland mean for me?
After the trial has been opened, the court officially declares it insolvent. If there is still significant property, then the property is the insolvency administrator, who has the task to distribute the bankruptcy estate evenly to all creditors.
Which conditions do I have to fullfill?
You definitely have to be insolvent
Your liabilities must be at least € 20,000 and you will no longer be able to pay your debts. You prove this by a documented failed attempt to unite with your creditors.
Your food is located in Ireland
Your food point must have been detectable and reasonably understandable in Ireland for the past six months. This is checked by the court by the sighting of account statements, leases and consumption bills.
No parallel procedure in Germany
You may not already be in your German or Austrian private insolvency proceedings. It always applies the insolvency law of the country in which the proceedings against you was opened. By contrast, a GbR insolvency in Germany prior to the Irish proceedings is harmless.
Do I still have to deal with my creditors?
No. The Official Assignee will take care of your creditors. This is the end of all claims on unpaid debts – no more annoying phone calls, no letters, no visits from creditors.
Does a reasonable standard of living remain for me?
Yes. a reasonable standard of living is even yours. Your income is first used to deny your living. Rent, utilities, food, education, spending on one’s health, and other daily necessities have priority over creditor satisfaction. Even a moderate savings rate is in it.
Which debts are covered by the residual debt exemption?
Unsecured and secured debt, such as mortgages for real estate financing, business loans or credit card debt, are covered by the private bankruptcy process in Ireland. On the other hand, what is not covered by the Irish residual debt exemption is debt resulting from financial penalties for crimes or debts incurred after the opening of the proceedings.
Legal basis for insolvency in Ireland
Irish Bankruptcy Law
The Personal Insolvency Act 2012 regulates the exact procedure in the Republic of Ireland. The Personal Insolvency Act 2012 thus forms the national framework for the implementation of the Ireland bankruptcy.
European bankruptcy law
The European Insolvency Regulation stipulates that, pursuant to Art. 16, 17, 25 EUInsVO, a residual debt waiver granted in Ireland must be recognized without further formalities in all member states of the European Union.
Is an Ireland bankruptcy worth it for me?
That depends on your individual situation, just make the calculation for yourself. Irish personal bankruptcy will completely drain your debt. Compared to a German procedure you save many years of time. Cost of living you would have in Germany too. As a rule, you are even better off financially during the insolvency proceedings in Ireland because suddenly more money is left to live as debt service ceases to exist.
How high must the liabilities be? The lower limit is 20,000 EUR, upwards there is no limit. However, you will have to include certain costs for legal advice and support, the infrastructure on site. As a rule, our clients have several hundred thousand euros in liabilities or are in the low to mid seven-digit range. Do you find yourself here again?
Who actually makes an EU bankruptcy in Ireland?
As a rule, doctors, dentists, entrepreneurs or private persons fall into insolvency in the context of business disputes, divorce, failed real estate financing and many other circumstances.
The process of EU insolvency in Ireland in 6 steps
Dissolve the German food spot
Cover the essential connections to Germany. Announce lease, mobile contract, electricity, heating and gas supply. Finish any employment and cancel your trade. Then go to the registration office or Bürgerbüro and officially sign off in Germany. Have the process confirmed by means of a log-off certificate.
Shift the center of life to Ireland
In the next step, move your center of life to Ireland. That means, in plain language, you need an apartment, without an apartment you will not get an Irish bank account, you will not be able to receive mail and you will not receive a Social Security number (Personal Public Service Number). All important building blocks for your center of life. The Personal Public Service Number (PPSN) gives you access to the Irish health system through the Health Service Executive (HSE), and every employer will ask you about your PPSN, and the Social Security number will give you access to the Irish job market.
File the Irish bankruptcy petition in court
Since you have optimally prepared for insolvency proceedings with our help, now after about half a year the time has come for you to file for bankruptcy petition in court. Depending on the place of residence and the amount of the debts different courts are responsible, we know where you are in good hands.
Interviews with the official Assignee
Once all documents have been fully submitted, they will be reviewed and the creditors informed of your application. The creditors have a few weeks to file any objections to your petition. As a rule, you will say that your center of life is just fictitious, which you can of course refute on the basis of appropriate evidence. Pass these interviews with our help and the process will be opened, time is finally working for you again.
Go through the Irish bankruptcy process
Once the process has been opened, a rock has started to roll, which can not be brought to a standstill without a great deal of effort. Claims for creditors from abroad are excluded, and it will be over in just 12 months. On the calendar day, you are finally debt free. If you are deprived of wealth and there are no other assets, such as real estate, you will quickly become uninteresting to the official Assignee, there is nothing to fetch. Just let it go.
Preservation of the Irish residual debt exemption
About two weeks before the trial ends, you can get the Irish Residue Exemption Order for a small fee from the bankruptcy court. It is a document in English. This will allow you to translate and apostize accredited. Then send this document to your creditors and the SCHUFA. All titles obtained against you are no longer enforceable and the negative SCHUFA entries will be redeemed completely three years after the end of the calendar year in which you received the discharge of residual debt. Nothing stands in the way of your new creditworthiness in Germany.
Our services for EU insolvency in Ireland
We help you with the relocation of your food point, this includes the housing agency, assistance with the Opening an account in Ireland , going to the authorities, obtaining the Personal Public Service Number, telephone line etc. We do valuable translation work, especially in correspondence with the Irish judiciary. If you have any questions, we are always at your disposal with expert advice and assistance. You can consult our lawyer specializing in international bankruptcy law.
Contact us and we will work together to determine your situation and explain how to get there step by step. Take the royal road of debt relief in the context of EU insolvency in Ireland.
Real alternative: the German insolvency plan
Many debtors are unable to just sweep the sails and move to a foreign country. If you are professionally or privately bound to Germany, an EU bankruptcy in Ireland is usually not possible. However, German insolvency law has been offering a real sensation since 2014: the insolvency plan – with one Insolvency plan , it is possible in Germany within a year to leave all liabilities behind.