Insolvency Debt relief notices

One of the new non-judicial resolution processes introduce by the Personal Insolvency Act is the debt relief notice (DRN).

This only applies where a debtor has qualifying debts that amount to €20,000 or less.  To be eligible for a DRN, the debtor must have a net disposable income of less than €60 per month, assets or savings worth €400 or less, and be domiciled or have ordinary residence in the State.  The debtor must be insolvent and show no likelihood of becoming solvent within the period of three years commencing on the application date, while also maintaining a reasonable standard of living for himself or herself and his or her dependants.

A debtor shall not be eligible for a debt relief notice where 25% or more of his or her qualifying debts were incurred during the period of six months ending on the application date