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 Dermot

Dermot is a Partner in our Commercial team. His expertise combined with business acumen means that he is an invaluable resource to clients looking for clear and pragmatic advice.

He has particular expertise managing large scale technology outsourcing contracts and a r...

About Dermot

Dermot is a Partner in our Commercial team. His expertise combined with business acumen means that he is an invaluable resource to clients looking for clear and pragmatic advice.

He has particular expertise managing large scale technology outsourcing contracts and a range of related matters, such as privacy and sector specific regulatory issues. Dermot regularly acts as trusted counsel on strategically important and novel technology projects.

His commercial contract experience is extensive and market leading, covering operational / supply chain agreements, route to market agreements, preparing and implementing template agreements and associated playbooks and providing an overflow service to in-house teams. He has also spent time on secondment and provided several commercial contract retainer services. This experience means that Dermot understands the challenges in-house lawyers face and is able to offer commercial advice which is tailored to risk profile.

Dermot has practised in both Ireland and the UK. He is best known for his work in the Financial Services and Life Sciences sectors. He has a deep understanding of the sensitivities in these sectors and the need to balance strategy and commercial intent with sector specific regulatory requirements.

dmcgirr@mhc.ie
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About Brian

Brian is a Partner in our Technology Law team and is Head of our Artificial Intelligence (AI) team.

Brian re-joined us in January of 2023 having spent time in-house as Chief Intellectual Property counsel with an Irish AI fintech start-up. During that time, he gained sig...

About Brian

Brian is a Partner in our Technology Law team and is Head of our Artificial Intelligence (AI) team.

Brian re-joined us in January of 2023 having spent time in-house as Chief Intellectual Property counsel with an Irish AI fintech start-up. During that time, he gained significant experience in operationalising and commercialising AI platforms and solutions. He led AI invention harvesting and international patent and trademark portfolio filing projects. He was also part of a team that conceived and developed a bespoke inhouse software invention and R&D tagging tool that has applications in the trade secret space also.

Brian helps clients prepare for compliance with the AI Act. This involves guiding them through:

  • EU AI Act strategy and compliance planning.
  • prohibited and high-risk AI systems threshold analyses
  • high-risk AI systems compliance planning
  • advising LLM / GenAI providers on their compliance obligations under the AI Act
  • working with clients to implement transparency obligations into the output of AI products.
  • Structuring and advising clients on AI Governance and related responsible AI policies and procedures.

Prior to working in-house, Brian was a Partner in our intellectual property team with many years’ experience in IP and technology law in a number of large firms. He is a proven results-driven and collaborative leader able to navigate complex technology and intellectual property issues in a fast-paced environment. Brian is an expert in designing and implementing business-focused AI and IP strategies and a trusted legal advisor to R&D and business leadership. His experience also includes M&A transactions, negotiating strategic partnerships, overseeing AI and IP asset management, and regulatory compliance. He has a passion for working in diverse technical and complex fields.

brianmcelligott@mhc.ie
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About Rob

Rob is a partner in our Construction, Infrastructure & Utilities team, specialising in Energy law. He is a seasoned practitioner with over 22 years’ experience in Ireland and Australia.

Prior to returning to Ireland in December 2021, Rob was Deputy General Counsel at Iber...

About Rob

Rob is a partner in our Construction, Infrastructure & Utilities team, specialising in Energy law. He is a seasoned practitioner with over 22 years’ experience in Ireland and Australia.

Prior to returning to Ireland in December 2021, Rob was Deputy General Counsel at Iberdrola Australia (previously called Infigen Energy), based in Sydney.

Rob has extensive and varied renewable energy and infrastructure experience, and has advised owners, operators and contractors on significant wind farm, solar farm and energy storage projects. Having spent over 10 years' in-house, he is particularly attuned to the commercial drivers of businesses operating in the Energy sector.

Rob is also admitted as a solicitor in New South Wales, Australia.

rmcdwyer@mhc.ie
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About Dorit

Dorit is a Partner in the Competition & Antitrust team and Head of Public Procurement, with extensive experience advising on all aspects of EU competition and procurement law.

She regularly advises clients on the competition law implications of commercial contracts, mer...

About Dorit

Dorit is a Partner in the Competition & Antitrust team and Head of Public Procurement, with extensive experience advising on all aspects of EU competition and procurement law.

She regularly advises clients on the competition law implications of commercial contracts, merger control, antitrust investigations, abuse of a dominant position, compliance and enforcement issues, State aid as well as competition litigation. She also advises clients on state aid matters and the impending Irish foreign direct investment screening regime.

In addition, Dorit has an excellent track record of advising public and private sector clients in the public and utilities sectors on a wide range of procurement issues, including advising on procurement strategy and execution, drafting procurement documentation, advising on selection and award criteria, evaluation methodology and scoring matrix, debrief requirements and defending or initiating a legal challenge.

Dorit is known for her keen eye for detail and pragmatic and solution-focused advice. She has practised law in England, Northern Ireland and Ireland for 25 years and is used to advising clients on cross-jurisdictional issues. Her experience allows her to draw on the practice in these jurisdictions and to develop strategies and solutions to difficult issues.

dmccann@mhc.ie
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About Hazel

Hazel is a Partner in our Intellectual Property Law team, and our Food, Agriculture & Beverage sector co-lead.

She partners with clients to identify, secure and commercialise their intellectual property rights and protect their intellectual property rights from infringe...

About Hazel

Hazel is a Partner in our Intellectual Property Law team, and our Food, Agriculture & Beverage sector co-lead.

She partners with clients to identify, secure and commercialise their intellectual property rights and protect their intellectual property rights from infringement.

Hazel is an expert on brand protection issues and trade mark strategies and manages international trade mark portfolios for clients. She acts in contentious trade mark, copyright, designs and patent matters.

Hazel also advises on intellectual property commercialisation and intellectual property issues in commercial transactions. She understands the commercial needs of her clients in a range of jurisdictions and particularly in cross border matters, as a result of advising on intellectual property issues in Ireland and Australia.

Prior to joining us, Hazel was an intellectual property partner in a leading Australian commercial law firm, based in Sydney.

hmcdwyer@mhc.ie
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About Robert

Robert is a partner in our leading Privacy and Data Security and Technology, Sourcing and Innovation teams. He helps major tech and other companies successfully implement global privacy, transfer and digital compliance programs.

He assists clients with how best to stra...

About Robert

Robert is a partner in our leading Privacy and Data Security and Technology, Sourcing and Innovation teams. He helps major tech and other companies successfully implement global privacy, transfer and digital compliance programs.

He assists clients with how best to strategically manage security incidents and privacy related regulatory engagement and claims. Robert also works with major tech and other companies in developing and refining specialist product and service terms, particularly those with a privacy dimension. In addition, he acts as trusted advisor on complex technology and outsourcing deals and has a niche expertise in procurement as a result of leading on significant public tech projects like the National Broadband Project and National Postcode Project.

Robert is known as an astute lawyer with a keen eye for detail, whilst always remaining business savvy. Robert excels at strategic and long-term thinking and an ability to scenario plan for all contingencies.

rmcdonagh@mhc.ie
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About Mark

Mark is a Partner in our Healthcare & Medical team. He specialises in the defence of high value and complex medical malpractice claims whilst representing the interests of hospitals and healthcare professionals in both the public and private sector. He also handles inquests on ...

About Mark

Mark is a Partner in our Healthcare & Medical team. He specialises in the defence of high value and complex medical malpractice claims whilst representing the interests of hospitals and healthcare professionals in both the public and private sector. He also handles inquests on their behalf.

Mark acts for several major Irish hospitals on the instructions of the Clinical Indemnity Scheme of the State Claims Agency and acts on behalf of clinical laboratory service providers in cases where the misreporting of cervical slides is alleged.

In previous roles with two leading healthcare firms in Ireland, Mark has represented the interests of private consultants and GPs on behalf of the largest indemnifier operating in Ireland, as well as private hospitals and other healthcare service providers on the instructions of their Irish and international indemnifiers and insurers.

mmccabe@mhc.ie
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About Eimear

Eimear is a Partner in our Corporate team. She advises on a range of corporate matters and is particularly active in the healthcare and energy sectors.

Eimear is recognised for her significant experience acting in the sale, purchase and restructuring of healthcare ass...

About Eimear

Eimear is a Partner in our Corporate team. She advises on a range of corporate matters and is particularly active in the healthcare and energy sectors.

Eimear is recognised for her significant experience acting in the sale, purchase and restructuring of healthcare assets. She advises many of the leading Irish and European operators and organisations on their portfolios of Irish healthcare assets.

She has extensive experience advising on renewable energy transactions having acted for many of the prominent developers and investors in the Irish energy sector. In addition, Eimear worked for a number of years as in-house counsel in a well-known renewables energy company.

Eimear joined us in 2015 having previously worked in-house and in corporate departments of other Dublin law firms. Due to her valuable experience working in industry, she understands clients’ needs and is commercial and solution focused in her approach.

elyons@mhc.ie
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About Kevin

Kevin is Co-Head of our Tax team. Kevin advises domestic and international clients on the tax aspects of doing business in Ireland.

Prior to joining us, Kevin spent 6 years advising on international tax structuring activities and tax controversy with a major inter...

About Kevin

Kevin is Co-Head of our Tax team. Kevin advises domestic and international clients on the tax aspects of doing business in Ireland.

Prior to joining us, Kevin spent 6 years advising on international tax structuring activities and tax controversy with a major international technology company and, before that, Kevin held roles in the tax groups of another leading Irish law firm and a Magic Circle law firm in London.

Kevin’s experience offers a unique perspective to clients operating internationally and in Ireland and in supporting the implementation of their business strategies in a tax efficient and compliant manner.

Kevin works with international groups on cross-border tax structuring, assisting with the design of their global holding, financing, intellectual property and supply chain structures in Ireland and internationally. He also advises clients on the use of holding companies in Ireland, migrations, M&A, reorganisations and private equity investment structures.

Kevin brings significant tax experience in financial services matters, including structured finance transactions, RMBS, CMBS and CLOs, and on real estate investment structures and on tax controversy matters, both in Ireland and other territories.

kmangan@mhc.ie
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About Michael

Michael is a Partner in our Commercial Department. With over 20 years’ experience, he is a regulatory specialist with a focus on content and communications regulation.

Technology companies are subject to an increasingly complex legal and regulatory landscape in ...

About Michael

Michael is a Partner in our Commercial Department. With over 20 years’ experience, he is a regulatory specialist with a focus on content and communications regulation.

Technology companies are subject to an increasingly complex legal and regulatory landscape in the EU, particularly as it relates to harmful and illegal online content. Michael is centrally involved in assisting some of the world’s largest technology companies navigate these laws, from understanding whether and how they apply to designing effective and efficient compliance measures with minimal impact on business.

Michael advises clients on all aspects of the EU’s Digital Services Act as well as on related laws such as the AVMS Directive, Terrorist Content Online Regulation, CSAM Regulation Proposal and Ireland’s Online Safety and Media Regulation Act.

Michael also has intimate knowledge of the EU electronic communications regulatory framework, including its complex ePrivacy rules, which now apply to a wide range of technology companies.

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

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