About personal insolvency
If you are unable to pay your personal debts on time because you owe more money than you can afford to pay, you may be insolvent. It is important to remember that there are options available to you. There are support services that can help you at any stage.
The Insolvency Service of Ireland (ISI) is an independent government body set up to help tackle personal debt problems. The ISI has a range of personal insolvency solutions to help get you back on track financially.
These solutions are legal arrangements that help people to resolve their debt problems.
Applying for a personal insolvency solution can stop creditors from taking legal action against you. Your arrangement may allow for a reduction in your debt repayments to an amount that is sustainable for you.
To identify which insolvency solution you might be eligible for, you must first understand what type of debt you have.
Understanding your debt
There are two types of personal debt, secured and unsecured.
- Secured debts are debts that are backed by something valuable you own, such as a house or a car. This is called collateral. This means if you don’t repay the debt, the lender can take the collateral to get their money back. Secured debts typically include mortgages or car loans.
- Unsecured debts are debts that are not backed by any collateral or asset. This means the lender does not have a specific item to take if you don’t repay the debt. Unsecured debts typically include utility bills, overdue rent, credit card bills, and bank overdrafts.
If you need help to understand what type of debt you have, you can contact the Money Advice and Budgeting Service (MABS) or the Insolvency service of Ireland (ISI).
Once you understand your type of debt, you can then check to see which debt solution is best for you.
Find out about the options available to you >
