Guide To Bankruptcy Published
Bankruptcy will no longer be a dirty word in 2014, according to Neo Financial's Paul Carroll, who predicts that those filing for it this year will be at least double the forecasted figure.
The debt restructuring expert announced his augury to coincide with debt restructuring/personal insolvency firm Neo Financial's launch of a new bankruptcy guide for 2014.
Written in plain language, the Irish Bankruptcy Guide 2014 outlines the new changes and timelines to the bankruptcy process. It also details what bankruptcy is about, how it can be used to get debt relief and – using real case studies – outlines how it actually affects ordinary people. The guide is free to download from Neo Financial's website.
According to Carroll, who founded Neo Financial, only 5% of clients that he is acting for will now apply for insolvency. The rest are opting for bankruptcy (or voluntary arrangements), believing those processes to be easier and more suitable. Carroll also claims that the government/ISI's predictions of 15,000 insolvency cases and 3,000 bankruptcy cases are going to be the opposite of what will really happen. “This is because the insolvency process is too difficult to qualify for, is too long and, most of all, does not give people real relief, which bankruptcy will give,” he says.
Carroll adds: “We expect about 80% of our clients to go through bankruptcy (we are hoping to put through 15 in January alone) and the remaining 15% will be voluntary arrangements. The guide that we published is designed to dispel the myths that are attached to the word bankruptcy in this country. In the vast majority of cases, bankruptcy will be a simple process and will give full relief from all debts, with no commitment to six or seven years of payments, as a PIA or DSA will require.”
Neo Financial was established by Carroll in 2011 and is based in Dublin. (27/01/14)