The number of people seeking advice on going bankrupt has doubled since new bankruptcy legislation came into force, according to financial advisors Neo Financial.

Inquiries to Neo Financial have doubled due to the new one year bankruptcy law, which reduced the bankruptcy term from three years to one year, says the firm’s principal, Paul Carroll.

Launching his firm’s new guide to becoming a bankrupt, Carroll said: “The introduction of the one year bankruptcy term provides a real debt solution for everyone. This is especially true for self-employed people who find themselves being held back by old business debts and unable to take full advantage of the current economic recovery.

“One year bankruptcy will help those in chronic debt to get free from such crippling debts and start again.”

Fairer debt solutions

In Association with

Carroll went on to point out that the new legal situation had brought clarity both for debtors and for banks. With clearer options, banks are more likely “to accept fairer debt settlements — which they would otherwise not have accepted”.

The firm’s latest and revised guide, entitled a Layman's Guide to Irish Bankruptcy 2016, can be downloaded from its website. The first two editions were downloaded almost 10,000 times, according to Carroll.

Neo Financial provides advice, and will also help plan and effect bankruptcy and insolvency solutions as well as negotiate with banks and other creditors.