Bankruptcy is a legal process where an individual or organisation is declared unable to pay its Creditors. Creditors can file a Bankruptcy petition against a business or corporate Debtor (involuntary Bankruptcy) in order to recover money that is owed to them.
The property or assets of an individual, who is unable or unwilling to pay their debts (called a Debtor) is transferred to be sold by a person given charge of the property by the High Court (called a Trustee).
When the property or assets are sold, the costs, expenses, court fees and certain priority debts are paid. After this, the net proceeds are distributed to those owed money (the Creditors).
In nearly all cases, the Official Assignee in Bankruptcy (an officer of the Courts Service) is the trustee to whom this property is transferred. This is the person who administers the estate of Bankrupt persons.
Application for Bankruptcy
Bankruptcy proceedings are brought in the High Court in Dublin. The Healy O’Connor Corporate Recovery Team can provide legal advice in relation to the instigation of a petition for Bankruptcy in the High Court and provide legal representation in court for a Bankruptcy judgment.
The High Court makes a Debtor Bankrupt either at the request of a Creditor or at his own request. In either case, this request is made in a document called a petition. This must be filed in the Office of the Examiner of the High Court.
When the petition is filed, the petitioning Creditor or Debtor must advertise notice of the Bankruptcy in national newspapers. The advertisement must also contain details of the place, date and time of the next time that this is before the court (called the statutory court sitting). The petitioner must also lodge €650.00 towards the costs and outlays of the Bankruptcy in the Official Assignee’s Office and give an undertaking to the Official Assignee as to the further costs and outlays which may be incurred.
If you are thinking of declaring yourself Bankrupt, or if you are being threatened with Bankruptcy proceedings, Healy O’Connor’s Corporate Recovery Team can provide you with legal advice and guide you through the Bankruptcy process.
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