What are the three debt resolution options in Ireland before bankruptcy?
The Insolvency Service of Ireland (ISI) administers three non-bankruptcy solutions: the Debt Relief Notice (DRN) for debts under €35,000 with low income, the Debt Settlement Arrangement (DSA) for unsecured debts of any amount, and the Personal Insolvency Arrangement (PIA) which can include mortgage debt. Bankruptcy through the High Court is a separate last resort.
What is a Debt Relief Notice (DRN) and who qualifies?
A DRN is designed for people with very low income and assets whose total qualifying debt is under €35,000. If approved, your debts are written off after a 3-year supervision period. You must apply through an Approved Intermediary (AI), which MABS can help you access for free. You cannot own property valued above a set threshold.
What is a Debt Settlement Arrangement (DSA) in Ireland?
A DSA is a formal agreement between you and your unsecured creditors (such as credit cards and personal loans) to repay what you can afford over up to 5 years. Any remaining debt is written off at the end. You must apply through a licensed Personal Insolvency Practitioner (PIP) and creditors must vote to approve the arrangement.
What is a Personal Insolvency Arrangement (PIA) and does it cover mortgage debt?
Yes. A PIA is the only ISI option that can include secured debt such as a mortgage. It lasts up to 6 years and can restructure both secured and unsecured debts simultaneously. A licensed PIP must manage the application. If your mortgage lender rejects the proposed PIA, you can appeal to the Circuit Court.
How does bankruptcy through the High Court work in Ireland?
Bankruptcy is a last resort for those who cannot avail of the ISI options. You apply to the High Court, which adjudicates you bankrupt if your debts exceed €20,000 and cannot be repaid. The Official Assignee takes control of your assets. Since 2016, the discharge period is 1 year in most cases.
How do I apply through the Insolvency Service of Ireland?
Start at isi.gov.ie. For DRN applications, contact MABS to find an Approved Intermediary. For DSA and PIA applications, you must engage a licensed Personal Insolvency Practitioner. The ISI website has a searchable register of PIPs. Initial consultations with PIPs are often free.
What role does MABS play in Irish insolvency?
MABS (Money Advice and Budgeting Service) provides free financial assessment and can refer you to an Approved Intermediary for DRN applications. MABS advisers can also help you understand whether a DSA, PIA, or bankruptcy is more suitable for your situation before you engage with any formal process.
What debts are excluded from ISI debt resolution processes?
Certain debts cannot be included in DRN, DSA, or PIA arrangements. These include family law orders, fines imposed by courts, debts arising from fraud, certain taxes, and debts incurred through dishonesty. Review isi.gov.ie for the full list of excluded liabilities before applying.
Will insolvency affect my credit record in Ireland?
Yes. ISI arrangements and bankruptcy are recorded on the ISI Register, which is publicly accessible. Your credit history with the Central Credit Register will also be affected. However, for many people dealing with unmanageable debt, the structured relief outweighs the credit impact.
How does uplaw.ai help with bankruptcy and insolvency questions in Ireland?
Tell uplaw.ai about your debts — the types, amounts, whether you have a mortgage, and your income. We help you understand which ISI option may suit your situation and what documents you need to gather before contacting MABS or a PIP.
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