Bankruptcy (under the new provisions)

mozattack

Hello there,

Been speaking to a friend of a friend who are both civil servants earning in the region of €100k per annum.

Not lying here in saying that I understand they are going down the bankruptcy route later this year because they owe circa €1.2m on 3 houses which are worth €700k in total. They are told they would lose their houses and for 3 years they would be bankrupt but it seems too easy for someone to do this as opposed to "Joe Soap" who will struggle away paying their mortgage of €200k down on a house worth €100k.

Am I missing something?

It comes from the advice of an insolvency expert.

chris85

mozattack wrote: »

Hello there,

Been speaking to a friend of a friend who are both civil servants earning in the region of €100k per annum.

Not lying here in saying that I understand they are going down the bankruptcy route later this year because they owe circa €1.2m on 3 houses which are worth €700k each. They are told they would lose their houses and for 3 years they would be bankrupt but it seems too easy for someone to do this as opposed to "Joe Soap" who will struggle away paying their mortgage of €200k down on a house worth €100k.

Am I missing something?

It comes from the advice of an insolvency expert.

Total owed is €1.2m or is this per house?

Hootanany

Will they keep there jobs while being declared Bankrupt.

chris85

Hootanany wrote: »

Will they keep there jobs while being declared Bankrupt.

Interesting point as certain professions cant work when bankrupt.

hfallada

Generally in Ireland you don't declare bankrupt. The bank goes after you and as a result you are mad bankrupt. It's not as simple as people make it out to be.

If it is possible they won't be able to work for a while. They should go to the uk and declare bankrupt. They are freed of the debt for a year. But I think if your bank rupt you can't be a td or a company director but I think thats all thats affected.

It's not a simple process and it's the absolute last resort and not just because they are in negative equity and want to have a burden off their chest

wmpdd3

There may be more to this like a massive revenue bill? Then bankruptcy may be their only option.

mozattack

Hi,

Now they owe €1.2m in total... €400k in negative equity and can't pay the mortgages.

They are teachers and I am fairly sure only accountants (who practice) and certain company directors can no longer work.

I personally think this is way forward for most... no point in paying down mortgages when you can pick up a house for €25k in some parts... yes €25k.

Anyone

This doesnt make sense, they have 3 houses, worth 700k each, and owe 1.2m. Sell 2 houses and clear the debts. Wheres the issue?

chris85

Anyone wrote: »

This doesnt make sense, they have 3 houses, worth 700k each, and owe 1.2m. Sell 2 houses and clear the debts. Wheres the issue?

Thats my look on it too. 2 houses worth €2.1m and debts totalling €1.2m. Unless we are missing something here.

Henry Ford III

mozattack wrote: »

Hi,

Now they owe €1.2m in total... €400k in negative equity and can't pay the mortgages.

They are teachers and I am fairly sure only accountants (who practice) and certain company directors can no longer work.

I personally think this is way forward for most... no point in paying down mortgages when you can pick up a house for €25k in some parts... yes €25k.

Solicitors, Judge's, Barristers, TD's (and many more I'm sure) all cannot practice/work if declared bankrupt.

mozattack

No, three houses worth €700k to €800k in total... Debts of over €1.2m.

oldhollowman

rent a house in northern ireland. you must live in it for 3 mos. then apply for bankruptcy, its fairly quick. you must pay any amount of income in excess of a means assessed process back to the banks. you cannot keep the property. a limit of something like a car worth 1200 is allowed, anything above that must be sold. assets must be sold. after 1 yr you are free.