Strict criteria must be met
If the debt is below €20,000 and you can prove you cannot pay, and it and your financial situation is unlikely to improve in the next three years, the debt could be written off under a debt relief notice (DRN).
* You are insolvent in that you are unable to pay your debts in full as they fall due, and there is no likelihood of doing so in three years;
* You have a net monthly disposable income of €60 or less after reasonable living expenses, which will be calculated by an approved intermediary (AI);
* You owe €20,000 or less in respect of your qualifying debts;
* You have assets of €400 or less. You are also allowed one item of jewellery not exceeding a value of €750, one motor vehicle worth a value of €2,000 or less, and reasonably necessary household equipment/tools the combined value of which may not exceed €6,000.
You may include: Credit card debt, overdrafts, personal loans, credit union loans, utility bills, store cards.
The creditors’ consent is required for: Taxes, duties, levies owed or payable to the State, local government charges, amounts due to the HSE under the Nursing Home Support Scheme, annual service charges to owner’s management companies (apartments and housing estates), liabilities arising under the Social Welfare Consolidation Act 2005, local authority rates, and household charges.
You seek a DRN via an AI, who will act on your behalf during the application. The ISI will maintain a list of AIs on www.isi.gov.ie. To be considered for a DRN you will need to give full and accurate details of your financial situation, setting out details of all of your debts, assets, liabilities, income, etc
If all information is in order, the ISI will forward your application to the Circuit Court. If the court approves, it will issue a DRN.
The ISI will notify you, your creditor(s) and the AI of the issue of the DRN. From the date of issue, there will be a three-year supervision period. During that time, the listed creditor(s) cannot pursue you for the debts specified in the DRN.
After the three-year period, provided you have complied with the Act, the listed debts specified in the DRN will be written off in full.
You must tell the ISI should your circumstances change materially.
You must inform the ISI where:
* Your monthly net income increases by €400 or more; or
* You receive a gift or sum of money of €500 or more; in both cases 50% must be surrendered to the ISI for your creditors;
* You can make payment(s) to the ISI at any stage during the supervision period of your DRN and the ISI will distribute the payment(s) to your creditor(s) accordingly;
* You can discharge yourself from the DRN by making a payment to the ISI of 50% or more of the total amount owed to the creditor(s).
If you do not comply with the terms of the DRN or if it emerges that you were not truthful, the DRN will be terminated and you will again owe the full amount you owed prior to entering into the DRN, including interest accrued.
Will your name be published as being in receipt of the DRN?Your details (name, address, date of birth, date of issue of DRN, and any other information deemed relevant) will be put on an electronic public register of Debt Relief Notices. This will remain in place for the three-year supervision period. Members of the public can inspect the register and request copies of entries contained on that register.
If you seek credit while your details are on the register, the creditor is likely to check the register before approving your application.
Upon completion of the DRN or if you make a payment of 50% or more of your debts, your details will be removed from the register.
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