What to do when your debtor becomes bankrupt
You cannot use normal debt recovery remedies to secure payment of your debt if the money is owed at the date of bankruptcy. Instead you must make a claim to the Official Assignee by submitting a completed Proof of Debt Form to the Bankruptcy Division of the ISI. The forms should be returned to the ISI via the following email address firstname.lastname@example.org with "Proof of Debt forms (ISI bankruptcy reference no.)" included in the subject line. Alternatively they can be submitted via post to ISI, Block 2, Phoenix House, Conyngham Road, Dublin 8 D08 T3CK.
Process in Proof of Debt
If funds are available for distribution, the Official Assignee will publish an advertisement for creditors in a newspaper and write seeking claims from all creditors listed on the Statement of affairs. Creditors are required to submit proof of their debt to the Official Assignee. Creditors however do not have to wait until the advertisement - they can send their proof to the Official Assignee before that date if they wish. Dividends to creditors will only be paid after this advertisement appears and the Official Assignee has adjudicated on all claims received. You will be notified if your claim has been admitted or not admitted. If your claim has not been admitted, you can appeal the Official Assignees decision by application to the Bankruptcy Court.
All creditors are entitled to examine the proofs of other creditors. Only debts owed on the date of adjudication are admitted under the bankruptcy. The High Court decides on disputed debts. This is where the bankrupt person and the creditor do not agree on the amount owed or the amount admitted by the Official Assignee.
Once my debt is admitted will I be paid in full?
Not necessarily, this depends on a number of factors such as:
- the amount of funds available for distribution based on the value of the bankrupt person’s estate;
- expenses, fees and costs;
- status of your debt;
- method of discharge (there are a number of alternative discharge methods which could result in your debt, or a portion of your debt, being paid to you. See the following for further information on these Methods of discharge other than the 1 year automatic discharge period)