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 Nina

Nina is a Senior Associate on the Technology and Privacy and Data Security teams. She works on both contentious and non-contentious privacy-related matters.

The contentious practice consists of working on large scale investigations and inquiries by data protection autho...

About Nina

Nina is a Senior Associate on the Technology and Privacy and Data Security teams. She works on both contentious and non-contentious privacy-related matters.

The contentious practice consists of working on large scale investigations and inquiries by data protection authorities (including matters that have been escalated to the European Data Protection Board) and privacy-related litigation. She also works on navigating engagements with government agencies around data disclosure, including law enforcement.

The non-contentious work consists of advising fast-scaling companies and established West Coast internet companies about establishment in the EU and their privacy compliance which usually goes beyond just the GDPR. As part of this, she also handles cross-border data breaches including the notification and post data breach remediation.

Nina also works with clients on compliance with emerging data laws, including the Digital Services Act and AI Act. This includes from understanding whether and how these laws apply to designing effective and efficient compliance measures with minimal impact on business.

ninam@mhc.ie
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About Stephen

Stephen is a Senior Associate in our Financial Regulatory team. He originally qualified and practised as a barrister in Northern Ireland.

Stephen’s work encompasses the wide range of licensing and regulatory issues, which face both domestic and international financial...

About Stephen

Stephen is a Senior Associate in our Financial Regulatory team. He originally qualified and practised as a barrister in Northern Ireland.

Stephen’s work encompasses the wide range of licensing and regulatory issues, which face both domestic and international financial institutions. He works with established credit institutions, insurance undertakings and payment institutions, as well as those looking to operate in Ireland for the first time.

Stephen gained invaluable experience of the Irish regulatory landscape from his time in the Central Bank of Ireland. He has a particular interest in areas such as AML, white collar crime, fitness and probity, risk mitigation programmes and enforcement actions taken by the Central Bank.

smcveigh@mhc.ie
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About Caoimhe

Caoimhe is a Senior Associate in our Real Estate Team.

Caoimhe has experience across a broad range of real estate transactions and advises clients on all aspects of commercial real estate. Caoimhe works with borrowers, lenders and investors on various financing transa...

About Caoimhe

Caoimhe is a Senior Associate in our Real Estate Team.

Caoimhe has experience across a broad range of real estate transactions and advises clients on all aspects of commercial real estate. Caoimhe works with borrowers, lenders and investors on various financing transactions as well as advising clients on sales and acquisitions and the disposal and leasing of commercial and mixed-use real estate assets.

Caoimhe’s commercial insight and practical and problem-solving approach allows her to give straightforward and strategic advice to clients to ensure a positive outcome for our clients.

ccusack@mhc.ie
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About Richard

Richard is a Senior Associate with our Insurance and Risk team. He acts in the defence of employer liability, public liability, product lability, and data protection defence litigation claims. He specialises in acting for insurers or self-insured clients in the defence of cl...

About Richard

Richard is a Senior Associate with our Insurance and Risk team. He acts in the defence of employer liability, public liability, product lability, and data protection defence litigation claims. He specialises in acting for insurers or self-insured clients in the defence of class action type claims. He has extensive experience in acting for clients before the High Court, Court of Appeal and Commercial Court.

Richard has worked on delivering large scale technology assisted discovery projects. He works with clients, and third-party consultants, through each stage of the discovery process from identifying data custodians, to managing review teams.

Prior to joining the insurance and risk team, Richard worked in commercial litigation advising a range of commercial clients and state bodies on contract disputes, trustee disputes, shareholder disputes and partnership disputes.

richardhogan@mhc.ie
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About Aine

Aine is a senior associate on our Employment and Benefits team. Her area of expertise is in Business Immigration.

Her immigration experience covers all immigration and employment applications to include advice sought by both companies and private individuals in relation ...

About Aine

Aine is a senior associate on our Employment and Benefits team. Her area of expertise is in Business Immigration.

Her immigration experience covers all immigration and employment applications to include advice sought by both companies and private individuals in relation to immigration matters.

Aine has extensive knowledge in Business Immigration and regularly advises clients on transferring their non-EEA employees to Ireland and on employing non-EEA nationals in Ireland. She also has extensive knowledge on citizenship applications, visa requirements in Ireland and entry into the State. Aine also advises voluntary organisations and missionaries in relation to transferring non-EEA volunteers to Ireland and securing their permission to stay in the State.

ainewright@mhc.ie
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About Noel

Noel is a Senior Associate in our Privacy and Data Security team.

Noel advises on a broad variety of privacy / data security issues across a number of contexts. The range here includes legal compliance advisory work and more contentious matters such as data protection co...

About Noel

Noel is a Senior Associate in our Privacy and Data Security team.

Noel advises on a broad variety of privacy / data security issues across a number of contexts. The range here includes legal compliance advisory work and more contentious matters such as data protection complaints, regulator investigations and related litigation.

He has assisted clients in successfully developing and maintaining products and services that are compliant with applicable laws and in navigating their way through complex, cross-border regulatory investigations involving multiple regulators.

nkealy@mhc.ie
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About Brian

Brian Cronin is an Associate on our market-leading Privacy and Data Security team.

Brian advises some of the world’s leading technology companies on GDPR and other regulatory compliance matters including advising on the roll-out of emerging and innovative technologies ...

About Brian

Brian Cronin is an Associate on our market-leading Privacy and Data Security team.

Brian advises some of the world’s leading technology companies on GDPR and other regulatory compliance matters including advising on the roll-out of emerging and innovative technologies and products, international data transfers, internal governance issues, privacy structures, cookies and similar tracking technologies, and privacy by design.

He is a proven results-driven and collaborative lawyer with deep technological knowledge of the fields he advises on, meaning that he is able to navigate complex issues at the intersection of technology and the law in a fast-paced environment.

bcronin@mhc.ie
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About Chloe

Chloe Wilkinson is an Associate in our market leading Privacy & Data Security team.

Chloe works with international and domestic leading technology companies on a diverse range of complex issues.

Chloe regularly advises clients on data protection issues arising ...

About Chloe

Chloe Wilkinson is an Associate in our market leading Privacy & Data Security team.

Chloe works with international and domestic leading technology companies on a diverse range of complex issues.

Chloe regularly advises clients on data protection issues arising as a result of the various and continually evolving legislative regimes including the GDPR, e-Privacy Directive and the Digital Services Act. Chloe assists on a diverse range of privacy related matters, including advising organisations on the roll out of their innovative products and ensuring privacy by design is incorporated from the beginning of any innovative design. She also advises clients on data and security breach incidents. In addition, she regularly advises clients on developing and implementing their privacy governance frameworks, as well as data mapping organisations data processing activities and formulating compliance plans.

As well as advisory experience, Chloe also regularly works with clients on contentious data protection matters. She has particular experience in this area, acting for well-known multinational organisations in statutory inquiries commenced by the Irish Data Protection Commissioner, as well as inquiries involving the European Data Protection Board. As a result, Chloe has gained experience dealing with most European regulators on GDPR issues that have resulted in worldwide media coverage and fines of a huge quantum. Chloe also engages with government agencies and non-for profits in law enforcement privacy related matters.

Prior to joining us, Chloe gained experience working in-house in a multinational pharmaceutical company, working on the legal and compliance team. This role and diverse experience means Chloe has a strong understanding of the regulatory challenges companies face and an acute understanding of the pragmatic and commercial advice they need.

cwilkinson@mhc.ie
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About Cathal

Cathal Minihane is a Senior Associate in our Public, Regulatory and Investigations team.

Cathal advises and represents public sector and regulatory bodies on their statutory powers, and in relation to governance, statutory interpretation, judicial review and statutory ...

About Cathal

Cathal Minihane is a Senior Associate in our Public, Regulatory and Investigations team.

Cathal advises and represents public sector and regulatory bodies on their statutory powers, and in relation to governance, statutory interpretation, judicial review and statutory appeals, drafting of legislation, inquiries and investigations, administrative law, fair procedures, and regulation. He also advises those interacting with public sector bodies and regulators on these issues. He has worked as an in-house legal advisor in the public sector as well as an external legal advisor to public bodies.

cminihane@mhc.ie
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About Alex

Alex has been with the firm since 2022.

Prior to this, Alex most recently managed HR and Recruitment for an Engineering firm with 5 offices across Europe. He also ran a Recruitment Agency for over 6 years. From this experience, Alex prides himself on not only finding the...

About Alex

Alex has been with the firm since 2022.

Prior to this, Alex most recently managed HR and Recruitment for an Engineering firm with 5 offices across Europe. He also ran a Recruitment Agency for over 6 years. From this experience, Alex prides himself on not only finding the best fit for the practice areas, but also working with people to identify a career path which most appeals to them.

Should you be interested in a career with us, Alex will always look forward to aligning our career offering, with your career preferences.

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

Can I Legally Record a Conversation in Ireland? 1 Answer

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