Do I qualify to apply for insolvency?

[anniearkins]

Hello, posted earlier but I did something wrong, so here goes.

I owe 27,000 in debt, I was managing ok with repayments but had to leave my job two years ago to become my mothers carer. Up until then, no arrears. Shortly after, they built up very quickly.

Through help with mabs, I now pay €35 weekly to the debts. As I receive 204 per week on carers allowance, the repayment is small enough but I am genuinely starting to struggle again, just little things, a pair of shoes last winter as my boots were letting in, underwear, a winter jacket/coat, or something needed for my home, such as the bathroom tap broke, I couldn't pay for it to be fixed, as every penny is calculated to the last cent with mabs, there was nothing to pay a plumber.

I know 35 seems nothing to people paying huge amounts on mortgages and families with larger bills, but it's a lot to me from 204 weekly.

Basically, I don't really understand the debt insolvency thing, I don't have a car, property or any assets. At the rate of paying 35 per week, it will be a long time before the debt is completely gone. I don't drink, don't smoke, don't socialise whatsoever. I can't cut back anymore than I have. So after all that explaining, does anyone know if I can apply when it comes into effect?

Nearly forgot, no dependents anymore and I am single if any of that matters

 

[44brendan]

Insolvency is not currently an option in Ireland. (i.e you cannot declare yourself insolvent).
Given that your only income is SW, it does appear that you are currently struggling to pay the 35pw. If you own a house you run the risk of action being taken against you by creditors and a judgement registered against the property. If not, there is little that the creditors can do. Who is handling the 35 weekly payment currently? If it is someone in MABS you should advise them of your inability to keep up this payment. Creditors are unlikely to create much of a fuss if you have no assets.

 

[anniearkins]

Thanks for the quick reply Brendan. I don't own my home, it's a Council flat. I don't have any assets at all. It is MABS that are organising the repayments. I originally started paying back €30 per week, I think I left work in 2009 ( I can't remember exactly) then the last two years the carers allowance rate went down, but MABS said I needed to pay more than €30 to the debtors, even though there was less income.

Sure it's all falling down now, I'm terrified I will end up in court and everyone knowing my business. I know the debt insolvency is not passed yet but if it is, I hope I can go for that. I read on some of the categories, but the one for over 20,000 seems to be that you pay an amount off in lump sum to clear the debt, sure there's no way I would be able to do that. I don't see one that I could apply for if the insolvency thing does come through.

 

[Brendan Burgess]

Annie

Under current legislation, it would be held in open court.

However, there is no need to be embarrassed anymore by debt problems. Many, many people have them. You should not allow this embarrassment to prevent you seeking a solution. Publicising your problem may actually help others in a similar position.

When the new legislation is passed, it is likely that any deal done would be done in private.

Brendan

 

[Bronte]

but MABS said I needed to pay more than €30 to the debtors, even though there was less income.

I'm terrified I will end up in court and everyone knowing my business. .

Welcome to AAM Anniearkins. I think as a first step you need to go back to Mabs and say you cannot afford the €35 as quite clearly you cannot afford this. Your situation has not been calculated correctly if things like basic necessities (clothes, shoes and repairs) are unaffordable. Mabs should help you to reduce it but it may be the case that your creditors will not. If this is the case you have a couple of options.

1. Pay nobody anything, then they may or may not pursue you for an instalment order, but no judge is going to order you to pay anything like 35€ on your income. Most people on social welfare are ordered to pay zero by judges currently. Yes the case will be in public but so what, you're only one of many that will be going throught the courts. The papers are littered with people from all walks of life and the neck of some of the elite in our society and their defenses in court beggers belief so I cannot see what you are worried about. Apart from the ones in court are your own neighbours keeping up a front and pretending everything is ok.

2. Your second option is to wait for the new insolvency regime, looks to me that you're going to quite easily come under that, when it is more clear what the rules are.

Have a look here on this AAM website for people in a far worse situation than you. And if reading your local paper freightens you (of similar people to yourself) don't let it worry you as life is too short. You are doing your best and caring for your mother and should be proud of yourself not ashamed, there are plenty out there who should be ashamed of themselves but you are not one of them. Not based on what you've posted here. And as for the politicians who should also be ashamed of themselves for not having thus far sorted out the insolvency laws roll on the next election.