Solicitor for Bankruptcy and Insolvency Law in Dublin

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Bankruptcy and Insolvency Law in Ireland: Navigating Financial Distress

Bankruptcy and insolvency law are critical legal frameworks that help individuals and businesses addre...

Bankruptcy and Insolvency Law in Ireland: Navigating Financial Distress

Bankruptcy and insolvency law are critical legal frameworks that help individuals and businesses address situations where they are unable to meet their financial obligations. Whether you’re an individual facing personal financial difficulties or a business struggling with debt, understanding bankruptcy and insolvency law is essential to finding the right legal solution. If you’re based in Dublin or anywhere else in Ireland, consulting a solicitor who specialises in this area can provide you with the guidance needed to make informed decisions and navigate the complexities of insolvency procedures.

What Is Bankruptcy and Insolvency Law?

Bankruptcy and insolvency law governs the legal processes by which individuals and businesses who are unable to pay their debts can seek relief. The law provides mechanisms for restructuring debt, liquidating assets, and distributing the proceeds to creditors. It offers individuals and businesses a chance to make a fresh start while ensuring that creditors receive fair treatment.

In Ireland, bankruptcy is primarily governed by the Personal Insolvency Act 2012, which provides a legal framework for individuals to deal with excessive debt. For businesses, insolvency law is governed by the Companies Act 2014, which covers company liquidation, receivership, and examinership. Whether you are an individual or a business entity, a solicitor specialising in bankruptcy and insolvency law can help you navigate these procedures and ensure that you comply with all relevant regulations.

Key Aspects of Bankruptcy and Insolvency Law

  1. Personal Bankruptcy
    Personal bankruptcy in Ireland is a legal process where an individual who cannot pay their debts can have their liabilities reduced or eliminated. The process typically involves the appointment of an Official Assignee, who is responsible for overseeing the sale of the individual’s assets to repay creditors. Bankruptcy in Ireland typically lasts for a period of one year, but it can be extended depending on the individual’s circumstances.

The Personal Insolvency Act also allows individuals to enter into a Debt Settlement Arrangement (DSA) or Personal Insolvency Arrangement (PIA), which enables them to restructure their debts and avoid full bankruptcy. These processes allow individuals to make reduced payments over a fixed period while preserving certain assets like their home.

  1. Business Insolvency
    Business insolvency can take several forms, depending on the type of company and its financial situation. There are three main processes available under Irish law for businesses facing insolvency:

    • Liquidation: This is the most common process for businesses that are insolvent and cannot continue trading. In liquidation, the company’s assets are sold to repay creditors. If the assets are insufficient to pay all debts, creditors may not receive full repayment.
    • Receivership: In cases where a company owes money to a secured creditor (such as a bank), that creditor can appoint a receiver to take control of the company’s assets and attempt to recover the debt.
    • Examinership: This process allows a company to continue trading while attempting to reach an agreement with creditors to restructure its debts. Examinership is typically used by businesses that believe they can become solvent again with financial restructuring.
  2. Insolvency for Partnerships
    Insolvency laws also apply to partnerships, though they are slightly different from those for corporations or individuals. Partnerships can enter into an agreement to restructure their debts, similar to a company going into examinership. The key difference lies in the liability of the partners: in most cases, partners are personally liable for the debts of the partnership.
  3. Creditor Rights and Protection
    In the context of bankruptcy and insolvency, creditor rights are central to the process. Creditors are typically divided into secured and unsecured creditors, with secured creditors having a higher priority in the repayment process. Insolvency law ensures that creditors receive fair treatment and that the legal procedures are followed to recover as much debt as possible from the bankrupt individual or company.

However, while creditors are given priority in repayment, the law also provides mechanisms to ensure that individuals and businesses are not unduly penalised. For example, personal bankruptcy allows for certain exemptions from asset seizure, such as the family home, depending on specific circumstances.

  1. Corporate Rescue and Restructuring
    In some cases, businesses facing financial difficulties may not need to resort to liquidation or receivership. Examinership is a legal process available to companies that are facing temporary financial issues and are still capable of being profitable. Under examinership, the company is given temporary protection from its creditors to allow it to attempt restructuring its business and financial affairs. This protection typically lasts for 70 to 100 days and can be extended if necessary.

When is it Necessary to Consult a Solicitor for Bankruptcy and Insolvency Law?

Understanding when to seek legal advice is crucial for anyone facing financial difficulties. Whether you are an individual struggling with debt or a business dealing with insolvency, consulting a solicitor can help ensure that you are aware of your legal rights and obligations. Here are some common situations where legal assistance is essential:

  • Personal Bankruptcy: If you are unable to meet your personal financial obligations and are considering bankruptcy or a personal insolvency arrangement, consulting a solicitor is important to ensure you understand the legal consequences and explore the best available options.
  • Business Insolvency: If your business is struggling with debt, a solicitor specialising in business insolvency can advise on whether liquidation, receivership, or examinership is the most appropriate course of action.
  • Negotiating with Creditors: If you are facing aggressive creditor actions or are unsure how to negotiate with creditors, a solicitor can help you explore options such as a Debt Settlement Arrangement (DSA) or Personal Insolvency Arrangement (PIA).
  • Cross-Border Insolvency: If your business or personal financial situation involves international elements, such as creditors in other jurisdictions, you will need a solicitor who understands the complexities of cross-border insolvency law.
  • Protecting Assets: A solicitor can advise on how to protect your assets, such as your home or business, from being seized in bankruptcy or insolvency proceedings.

Why is Bankruptcy and Insolvency Law Important?

Bankruptcy and insolvency law serve several key purposes:

  1. Financial Relief: For individuals and businesses facing overwhelming debt, bankruptcy and insolvency law provides a path to relief. It offers a chance to start over, either through debt restructuring or the discharge of liabilities.
  2. Fairness and Transparency: Bankruptcy and insolvency procedures ensure that the process is fair to both debtors and creditors. The law ensures that creditors are repaid as much as possible, while debtors are given a clear process to resolve their financial troubles.
  3. Economic Stability: By allowing businesses and individuals to recover from financial setbacks, bankruptcy and insolvency law helps maintain economic stability and encourages a healthy economy by ensuring businesses can be restructured or liquidated efficiently.

Conclusion

Bankruptcy and insolvency law is essential in Ireland to help individuals and businesses overcome financial distress. If you find yourself or your business in financial difficulty, it’s vital to consult a solicitor who specialises in bankruptcy and insolvency law to understand your rights, the legal processes involved, and the best path forward. Whether you are facing personal bankruptcy, business insolvency, or dealing with creditor disputes, expert legal advice can help you navigate these challenges effectively and make informed decisions. If you are in Dublin or anywhere in Ireland, seeking legal assistance can provide you with the support needed during financially challenging times.

About Judith

Judith Riordan is a Partner in our Dispute Resolution team. She specialises in insolvency and financial restructuring matters along with all related litigation.

Judith has broad experience advising and protecting the interests of all stakeholders in formal insolvency p...

About Judith

Judith Riordan is a Partner in our Dispute Resolution team. She specialises in insolvency and financial restructuring matters along with all related litigation.

Judith has broad experience advising and protecting the interests of all stakeholders in formal insolvency processes including examinership, liquidation, receivership, SCARP and bankruptcy. She routinely represents insolvency office-holders in court and out of court. She also advises companies and their officers on solvency issues and risks.

In addition to advising troubled businesses, Judith frequently advises secured creditor in formal insolvency processes and informal work-out arrangements.

She has experience advising both domestic and international clients in cross border cases across a range of sectors. Judith also has extensive experience of insolvency related litigation.

jriordan@mhc.ie
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About Robert

Robert is a Partner in our Construction, Infrastructure and Utilities team. Robert specialises in construction legal issues, both contentious and non-contentious.

Robert leads on contentious matters in the commercial court as well as arbitration, conciliation and medi...

About Robert

Robert is a Partner in our Construction, Infrastructure and Utilities team. Robert specialises in construction legal issues, both contentious and non-contentious.

Robert leads on contentious matters in the commercial court as well as arbitration, conciliation and mediation, usually with a construction or public procurement focus.

Robert also advises on infrastructure and life science contracts. Robert provides mid-stream advice on high value construction projects, keeping the focus on successful project delivery and avoiding formal dispute resolution processes.

Robert has worked with the Irish Public Works Contracts since their introduction in 2007, including some of the most significant contracts awarded under that form. Robert also work regularly with FIDIC and RIAI forms of contract, as well as bespoke forms.

rrooney@mhc.ie
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About Áine

Áine Quirke works on our market-leading Privacy and Data Security team and is based in our New York office. She advises some of the world’s leading tech and social media companies on all aspects of GDPR compliance. Her practice focuses on counselling clients on the roll-out of ...

About Áine

Áine Quirke works on our market-leading Privacy and Data Security team and is based in our New York office. She advises some of the world’s leading tech and social media companies on all aspects of GDPR compliance. Her practice focuses on counselling clients on the roll-out of new and emerging technologies and products. She also has particular expertise advising companies on cookies and similar tracking technologies.

Áine advises clients on regulatory investigations and enforcement actions taken by data protection authorities. She also has experience in contentious data protection-related litigation, take down requests and navigating engagements with government agencies, including law enforcement.

She regularly counsels US technology companies on their international expansion plans and privacy structure in Europe.

Áine is also qualified as an attorney-at-law in New York.

aquirke@MHC.ie
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About Shane

Shane is a Health & Prosecutions Partner. He provides strategic advice to State entities in complex regulatory investigations and enforcement proceedings.

Shane advises a number of state agencies in the area of regulatory prosecutions in courts nationwide in diverse ar...

About Shane

Shane is a Health & Prosecutions Partner. He provides strategic advice to State entities in complex regulatory investigations and enforcement proceedings.

Shane advises a number of state agencies in the area of regulatory prosecutions in courts nationwide in diverse areas such as public health, food hygiene, environmental law and energy.

Shane acted in High Court injunctive proceedings initiated as a test case for local authorities and which formed an important part of the Government’s national waste management priorities.

Shane has developed standard criminal prosecution procedures and civil enforcement policies for state bodies. Shane presents training seminars in the area of regulatory investigations.

Shane advises corporates and privates individuals in regulatory and financial crime matters.

sreynolds@mhc.ie
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About Elizabeth

Liz is a Partner in our Debt Recovery team. She has deep and wide-ranging experience in advising on complex commercial disputes. She currently manages a team who recover debt for a large public sector client.

Prior to embarking on her commercial career, Liz advised...

About Elizabeth

Liz is a Partner in our Debt Recovery team. She has deep and wide-ranging experience in advising on complex commercial disputes. She currently manages a team who recover debt for a large public sector client.

Prior to embarking on her commercial career, Liz advised charitable clients appearing before State Inquires. She has also managed large scale bulk litigation on behalf of charitable bodies, as well as commercial entities. Her experience also includes fraud, product liability & professional negligence.

She further specialises in complex enforcement procedures and remedies, such as bankruptcy, fraudulent transfers, and appointment of a receivers by way of equitable execution. She continues to maintain a practice in resolving commercial disputes and pursuing enforcement such as bankruptcy.

equinn@mhc.ie
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About Áine

Áine is a Partner in our Real Estate and Built Environment team. She has broad experience advising corporate clients on all aspects of commercial property transactions to include landlord and tenant law, sales and acquisitions.

Áine acts for corporate clients on the mana...

About Áine

Áine is a Partner in our Real Estate and Built Environment team. She has broad experience advising corporate clients on all aspects of commercial property transactions to include landlord and tenant law, sales and acquisitions.

Áine acts for corporate clients on the management of extensive and high-profile portfolios of Irish Assets from purchase, financing, and development to leasing and ultimate sale.

Áine acts for lenders on the financing of commercial real estate, to include portfolios of mixed-use developments and social housing developments. Áine leads the team that advises a number of State utility providers on all real estate matters including diverse and large volume transactional work.

Áine’s broad experience, commercial insight, and legal expertise, means that she can recognise and cut through potential issues at an early stage in a transaction, and avoid delays with pragmatic and commercial solutions.

aquigley@mhc.ie
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About Kevin

Kevin is head of our Medical Law team. He specialises in healthcare and life sciences law and regulation. As a former practising medical doctor he has particular insight on challenges in the sector.

Kevin advises a number of Ireland’s major hospitals in both public and ...

About Kevin

Kevin is head of our Medical Law team. He specialises in healthcare and life sciences law and regulation. As a former practising medical doctor he has particular insight on challenges in the sector.

Kevin advises a number of Ireland’s major hospitals in both public and private sectors for the Clinical Indemnity Scheme. He also works for multinational laboratories, pharmaceutical and medical device manufacturers.

He has particular expertise in the defence of complex high value clinical negligence cases, advocacy and product liability litigation. Kevin also advises a wide range of clients on regulatory issues including enforcement, product safety and recall.

Kevin is known for his clear, definitive advice to clients which enables them to make confident and informed decisions.

kpower@mhc.ie
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About Maurice

Maurice is Head of our Dispute Resolution team. He specialises in complex commercial disputes and arbitrations and is recognised for his skill in finding commercial solutions to complex matters.

Maurice has experience in a wide range of commercial litigation matters ...

About Maurice

Maurice is Head of our Dispute Resolution team. He specialises in complex commercial disputes and arbitrations and is recognised for his skill in finding commercial solutions to complex matters.

Maurice has experience in a wide range of commercial litigation matters including high value contractual and tortious disputes and shareholders disputes, often with an international component. He has acted in some of the most high-profile matters in the Irish market and is consistently acknowledged for his technical ability and strategic approach.

He routinely advises insolvency office holders and stakeholders in the insolvency process. He also provides strategic advice to companies and their directors in distressed situations on corporate restructuring and insolvency issues.

mphelan@mhc.ie
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About Hannah

Hannah is a Partner in our Privacy and Data Security team.

Hannah advises on all aspects of privacy and technology, from product counsel to cybersecurity, AI, international data transfers and law enforcement. Hannah has a multitude of experience in working with client...

About Hannah

Hannah is a Partner in our Privacy and Data Security team.

Hannah advises on all aspects of privacy and technology, from product counsel to cybersecurity, AI, international data transfers and law enforcement. Hannah has a multitude of experience in working with clients across the tech and IoT space, from traditional blue-chip manufacturers to next-generation AI and crypto businesses.

Hannah is known for providing commercial and pragmatic solutions to complex privacy issues. Hannah acts as lead product counsel for the world’s leading technology companies and specialises in building complex, multi-faceted privacy programmes for fast-growth companies.

From her experience as a commercial contracts lawyer, Hannah also has a reputation as a keen negotiator and is regularly instructed by top tech companies to handle their challenging contracts.

Prior to joining us, Hannah gained much of her experience with a Tier 1 technology practice and from her time in the European Court of Human Rights. Her variety of experience and knowledge means that she brings a unique depth of understanding and exposure to her advice.

hperry@mhc.ie
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About Anthony

Anthony is a Financial Services partner in our Investment Funds team.

He provides advice on a wide of range of UCITS and AIF structures which employ a broad range of investment strategies including passive, smart beta, active, fund of funds, hedge funds, private...

About Anthony

Anthony is a Financial Services partner in our Investment Funds team.

He provides advice on a wide of range of UCITS and AIF structures which employ a broad range of investment strategies including passive, smart beta, active, fund of funds, hedge funds, private equity and private credit.

In addition to advising on collective investment schemes, Anthony regularly engages with the owners of fund service providers on the acquisition and disposal of Irish operations or Irish branches of entities domiciled in other jurisdictions. Anthony also regularly provides guidance on the addition of financing into Irish fund structures.

Anthony is an active member of Irish Funds, the industry association with responsibility for promoting funds based in Ireland. Anthony was previously based in London and New York and regularly travels between and works with clients in those locations.

Anthony has completed secondments in the product teams of two of the World’s largest asset managers and a well-known white label third party management company based in Dublin. Prior to joining the Firm, Anthony worked in the asset management departments of two leading Irish firms in Dublin.

aohanlon@mhc.ie
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Questions and answers about Bankruptcy and Insolvency Law

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