Steve Thatcher
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This is a comparison of the existing Irish regime with the UK regime. I have asked Steve to update it to compare the UK regime with the regime as proposed in the Bill.
Brendan has asked me to post a small number of articles on UK bankruptcy due to an interest in the subject. Please free to ask any questions at all.
The UK and the Irish bankruptcy regimes and processes have come under the spotlight in recent months as many more Irish citizens look to see whether or not they have a viable option for dealing with their burdensome investment property debt. I have done an analysis of the two processes and picked out the main differences between the two to highlight what I see as the benefits of the system here in England and consequently how it may be used by you to wipe off debt that you cannot cope with anymore.
Cost and hassle much less in England
From what I have read it seems that in Ireland the filing of bankruptcy proceedings can be very tedious and expensive. I understand that there are advertising costs, solicitors and barristers fees, and two separate High Court attendances. It is commonly accepted that that the costs will not be less than €6,000. You will need €650 as a deposit and €1900 in realisable assets to start the process.
By contrast in England, the fees are currently £700. It is completed in just one morning with one appearance at court.
Open court in Ireland vs. in chambers in England - In England your bankruptcy is not even advertised
In Ireland I believe that you are subject to cross examination in open court about your affairs, which for those not used to a court process must be very difficult to handle.
In England your case is dealt with by a District Judge in chambers (private) where you can take your advisor for help and support.
Your bankruptcy is not even advertised anymore.
In England, you can keep your pension
Your affairs in both jurisdictions are handed by a similar official. Your assets such as you have them vests in this person and he realises any value for your creditors. The main difference it seems to me is that in the Irish system any property acquired during your bankruptcy for as long as it lasts can be taken from you and even your pension is not safe.In England, you get to keep your pension, a car with a value of up to £2000. You also have decent allowances which you can set against any income that you have. Here if you wish you can also keep your matrimonial home, subject to certain criteria. Your job in the very vast majority of cases is not at risk and you can keep and operate a bank account.
But best of all, there is automatic discharge after one year in England
In Ireland the there is an expectation that you should cover all your costs, fees and expenses and also the preferential creditors. They even expect your creditors to get 50c/€.
In England the repayment process is set out in statute. You can only pay an income payments order from your excess income for a maximum of 36 months. The Official Receiver has only 36 months to deal with any equity in your property or it reverts back to you.
The biggest difference is that in Ireland, subject to any subsequent changes, you will discharged only when , all after acquired property has bee disclosed, when all fees, costs and expenses and preferential creditors have been paid in full and either a dividend of 50C/€ has been paid or 12 years has elapsed.
In England you will automatically be discharged after one year.
You must establish a Centre of Main Interests in England
In order to qualify for a bankruptcy in England, you need to establish your Centre of main interest as being in England. I am going to do a separate piece on how to establish your centre of main interest.
[broken link removed]
Brendan has asked me to post a small number of articles on UK bankruptcy due to an interest in the subject. Please free to ask any questions at all.
The UK and the Irish bankruptcy regimes and processes have come under the spotlight in recent months as many more Irish citizens look to see whether or not they have a viable option for dealing with their burdensome investment property debt. I have done an analysis of the two processes and picked out the main differences between the two to highlight what I see as the benefits of the system here in England and consequently how it may be used by you to wipe off debt that you cannot cope with anymore.
Cost and hassle much less in England
From what I have read it seems that in Ireland the filing of bankruptcy proceedings can be very tedious and expensive. I understand that there are advertising costs, solicitors and barristers fees, and two separate High Court attendances. It is commonly accepted that that the costs will not be less than €6,000. You will need €650 as a deposit and €1900 in realisable assets to start the process.
By contrast in England, the fees are currently £700. It is completed in just one morning with one appearance at court.
Open court in Ireland vs. in chambers in England - In England your bankruptcy is not even advertised
In Ireland I believe that you are subject to cross examination in open court about your affairs, which for those not used to a court process must be very difficult to handle.
In England your case is dealt with by a District Judge in chambers (private) where you can take your advisor for help and support.
Your bankruptcy is not even advertised anymore.
In England, you can keep your pension
Your affairs in both jurisdictions are handed by a similar official. Your assets such as you have them vests in this person and he realises any value for your creditors. The main difference it seems to me is that in the Irish system any property acquired during your bankruptcy for as long as it lasts can be taken from you and even your pension is not safe.In England, you get to keep your pension, a car with a value of up to £2000. You also have decent allowances which you can set against any income that you have. Here if you wish you can also keep your matrimonial home, subject to certain criteria. Your job in the very vast majority of cases is not at risk and you can keep and operate a bank account.
But best of all, there is automatic discharge after one year in England
In Ireland the there is an expectation that you should cover all your costs, fees and expenses and also the preferential creditors. They even expect your creditors to get 50c/€.
In England the repayment process is set out in statute. You can only pay an income payments order from your excess income for a maximum of 36 months. The Official Receiver has only 36 months to deal with any equity in your property or it reverts back to you.
The biggest difference is that in Ireland, subject to any subsequent changes, you will discharged only when , all after acquired property has bee disclosed, when all fees, costs and expenses and preferential creditors have been paid in full and either a dividend of 50C/€ has been paid or 12 years has elapsed.
In England you will automatically be discharged after one year.
You must establish a Centre of Main Interests in England
In order to qualify for a bankruptcy in England, you need to establish your Centre of main interest as being in England. I am going to do a separate piece on how to establish your centre of main interest.
[broken link removed]
