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 Lisa

Lisa is a Partner in our Public, Regulatory and Investigations team, specialising for over 10 years in Public Sector Law and sectoral regulation, including energy, financial services, data privacy, product and life sciences regulation.

Lisa provides practical and i...

About Lisa

Lisa is a Partner in our Public, Regulatory and Investigations team, specialising for over 10 years in Public Sector Law and sectoral regulation, including energy, financial services, data privacy, product and life sciences regulation.

Lisa provides practical and informed advice to public and regulatory bodies and those dealing with such bodies. This includes advising on what public and regulatory bodies can properly do, fair procedures and statutory interpretation, as well as on regulatory compliance, investigation and enforcement. It also includes advising on all types of public law litigation. Lisa also has a particular focus on Information Law, advising extensively on all aspects of access to, and disclosure of, information.

Clients appreciate Lisa's expert insight and succinct advice.

ljoyce@mhc.ie
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About Brian

Brian is a Partner on our Privacy and Data Security team. His focus is helping leading technology companies to manage large scale regulatory investigations, implement global privacy and data transfer programs, and launch new and innovative technologies in Europe.

Brian ...

About Brian

Brian is a Partner on our Privacy and Data Security team. His focus is helping leading technology companies to manage large scale regulatory investigations, implement global privacy and data transfer programs, and launch new and innovative technologies in Europe.

Brian provides companies with solutions to their privacy and data protection problems. He also has particular expertise advising companies throughout their engagement with regulators and law enforcement agencies, including helping them to navigate and resolve complex investigations and enforcement action.

Prior to joining us, Brian gained much of his experience with a leading technology firm in London and in-house at Samsung as its European Data Protection Officer. He also gained valuable experience working in the Irish Data Protection Commission a number of years ago. This diverse and varied experience means Brian has a strong understanding of the privacy and data protection challenges companies face and the pragmatic and commercial advice they need.

bjohnston@mhc.ie
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About Peter

Peter is a Dispute Resolution Partner. He advises domestic and international clients on complex commercial disputes, and contentious regulatory matters. Known for his commercially focused advice, Peter has extensive experience in advising clients on matters involving financial...

About Peter

Peter is a Dispute Resolution Partner. He advises domestic and international clients on complex commercial disputes, and contentious regulatory matters. Known for his commercially focused advice, Peter has extensive experience in advising clients on matters involving financial services litigation and shareholder disagreements.

Peter leads large-scale projects associated with all legal aspects of regulatory inquiries. In addition, he has comprehensive experience in matters involving expedited case management in the Commercial Court.

Peter advises professionals and their insurers in professional negligence claims and partnerships in various professions. He has wide-ranging experience in property disputes, and advises airlines, lessors and financiers on a range of contentious issues and disputes in the aviation sector.

pjohnston@mhc.ie
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About Peggy

Peggy is Partner in our Pensions team. Known for her pragmatic and solution-orientated advice, she has established herself as a leading Pensions expert. Peggy has advised on a wide range of pension matters and holds a professional Pension Trustee qualification.

Mo...

About Peggy

Peggy is Partner in our Pensions team. Known for her pragmatic and solution-orientated advice, she has established herself as a leading Pensions expert. Peggy has advised on a wide range of pension matters and holds a professional Pension Trustee qualification.

More recently Peggy has been appointed by various trustees to act as an independent expert under the terms of internal dispute resolution procedures. In these roles, Peggy has reviewed specific disputes and provided reports and commentary to facilitate the resolution of the disputes. She has also provided guidance on the future handling of disputes and engagements with pensions regulatory bodies.

Peggy has also written, spoken and lectured on pensions matters.

phughes@mhc.ie
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About Kevin

Kevin is a Consultant at Mason Hayes & Curran. Previously, he was Head of Financial Services and then Real Estate before becoming Chair of the firm. He served for many years on the firm’s Management Group. Now Kevin’s focus is on executive coaching and talent development at th...

About Kevin

Kevin is a Consultant at Mason Hayes & Curran. Previously, he was Head of Financial Services and then Real Estate before becoming Chair of the firm. He served for many years on the firm’s Management Group. Now Kevin’s focus is on executive coaching and talent development at the firm.

Kevin is a member of the boards of Sport Ireland, Mercy International Association and St Michael’s House Special National School Raheny. Kevin is Chair of Clontarf GAA, a member of the Governance Committee of Golf Ireland and he is the CODA Officer of the Dublin Ladies Gaelic Football Association.

khoy@mhc.ie
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About Michaela

Michaela is head of our Product Regulatory team. In addition, Michaela is Head of Life Sciences. She advises clients across a number of industries on regulatory compliance, product safety and product liability.

Michaela advises life sciences, technology, cosmetic an...

About Michaela

Michaela is head of our Product Regulatory team. In addition, Michaela is Head of Life Sciences. She advises clients across a number of industries on regulatory compliance, product safety and product liability.

Michaela advises life sciences, technology, cosmetic and consumer product clients on the regulatory framework applicable to their products and services throughout their life cycle. This includes advising clients on all issues they encounter on the EU market from R&D, marketing authorisations & CE marking, packaging, market access, product launch and marketing, through to safety issues, product recall and defending product liability claims. She is known in particular for her experience in working as EU counsel with a number of global technology and life sciences companies and advising them on their digital health strategies, with a particular focus on software medical devices and wearables.

Michaela also frequently advises clients on regulatory investigations by enforcement authorities. She has also overseen the implementation and coordination of high volume product withdrawals and product recalls, including rectification strategies, in multiple jurisdictions.

Michaela has also acted on behalf of clients in significant commercial disputes including judicial reviews and product liability class actions, particularly in the medical device industry. Her work is recognised internationally by clients, particularly her proactive and strategic approach. Michaela was named as the sole winner of the Lexology Client Choice Award for Life Sciences in Ireland in 2022 & 2023.

mherron@mhc.ie
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About Brian

Brian is Head of our Health and Prosecutions team. Brian advises on all aspects of Healthcare law, prosecutions and criminal law.

This often involves urgent advice or Court applications for protective orders or for medical treatment.

Brian has 20 years Court adv...

About Brian

Brian is Head of our Health and Prosecutions team. Brian advises on all aspects of Healthcare law, prosecutions and criminal law.

This often involves urgent advice or Court applications for protective orders or for medical treatment.

Brian has 20 years Court advocacy experience which gives a unique perspective on avoiding disputes where possible and preparing for and presenting cases where necessary.

Brian successfully advised a hospital in a 4 day remote Supreme Court action in which judgement was delivered in Jan 2021. The Special Rapporteur for Children described this case the most significant children's rights decision of Irish courts in 15 years.

bhorkan@mhc.ie
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About Liam

Liam is a Partner in the Competition & Antitrust team with first-rate experience advising on all aspects of EU and Irish competition law, digital regulation and the incoming Irish foreign investment screening regime. Liam specialises in merger control, cartels, abuse of dominan...

About Liam

Liam is a Partner in the Competition & Antitrust team with first-rate experience advising on all aspects of EU and Irish competition law, digital regulation and the incoming Irish foreign investment screening regime. Liam specialises in merger control, cartels, abuse of dominance, competition litigation and State aid.

Liam has considerable experience advising regarding complex merger control and foreign investment screening reviews at EU and national level, and multijurisdictional antitrust investigations concerning cartels and abuse of dominance. Liam also advises clients about complex competition litigation proceedings actions before the Irish courts.

He routinely advises on other behavioural and regulatory matters such as distribution systems, co-operation agreements, and joint ventures. Liam also has extensive experience advising on all aspects of EU State aid law.

Liam advises across a multitude of industries including technology; financial services; life sciences; consumer products; aviation; energy; and natural resources and media and telecommunications.

Prior to joining Mason Hayes & Curran LLP, Liam gained invaluable international experience having previously worked at leading antitrust and competition practices at Freshfields Bruckhaus Deringer LLP in Brussels and Gibson, Dunn & Crutcher LLP in London where he advised on global merger control transactions requiring multi-jurisdictional review and large-scale antitrust investigations and enforcement proceedings. Liam also previously worked as senior associate in the EU, competition and regulatory group at another leading Irish law firm advising on all aspects of EU and Irish competition law.

lheylin@mhc.ie
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About Jennifer

Jennifer is a Partner in our Healthcare & Medical team. Specialising in the defence of complex catastrophic injury cases, she is known for her ability to distil intricate and multi-layered claims into core and manageable matters.

Jennifer practices primarily in the d...

About Jennifer

Jennifer is a Partner in our Healthcare & Medical team. Specialising in the defence of complex catastrophic injury cases, she is known for her ability to distil intricate and multi-layered claims into core and manageable matters.

Jennifer practices primarily in the defence of medical malpractice High Court actions. She is a skilled litigator with extensive experience in handling high value medical negligence actions on an urgent and fast-tracked basis.

Jennifer represents several major Irish hospitals on the instruction of the Clinical Indemnity Scheme of the State Claims Agency. She also represents private clients to include pharmaceutical and clinical laboratory entities. Prior to joining the firm, Jennifer worked for a well-known international law firm where she acted for two of the largest private medical indemnifiers.

jhenry@mhc.ie
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About Laura

Laura is a Partner in our Dispute Resolution team and is Head of our Data Solutions Group.

Laura has significant experience in the end-to-end management of all aspects of document review projects including Regulatory Investigations, High Court and Commercial Court disc...

About Laura

Laura is a Partner in our Dispute Resolution team and is Head of our Data Solutions Group.

Laura has significant experience in the end-to-end management of all aspects of document review projects including Regulatory Investigations, High Court and Commercial Court discovery projects as well as Data Access Requests.

Laura has advised clients in the management of large-scale discovery projects in high-profile regulatory investigations and civil disputes for professional services firm and financial institutions. Laura advises clients on all aspects of document preservation, filtering and production and in the use of AI to identify evidence and adopt the most efficient approach to document reviews. Laura has advised clients extensively in the use of AI in both civil disputes and criminal investigations as well as in the context of Data Access Requests.

Laura has over 15 years of experience as a commercial litigator dealing with complex, high-profile cases in the Irish Commercial Court including professional negligence claims, contractual disputes and product liability claims.

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

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