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Buachaill
Buachaill, Barrister
Category: Republic of Ireland Law
Satisfied Customers: 10778
Experience:  Barrister 17 years experience
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If I have purchased a house with four other individuals and

Customer Question

If I have purchased a house with four other individuals and taht property has been through the process of being sold and the balance remaining outstanding. Also the courts process has adjudicated a charge on behalf of the lender and is awaiting action. The options are salary garnishee, settlement etc. Included in this list is bankruptcy. I reside in the United States. I also have interests in property there. If I file for bankruptcy in Ireland or if thev lender declares me bankrupt, can they take over my interests in these assets as part of the proceedings in this jurisdiction. The original lending document stated that each individual was jointly and severely liable. The debt outstanding between five is approximately 130k.
Submitted: 2 months ago.
Category: Republic of Ireland Law
Expert:  Buachaill replied 2 months ago.

1. The first thing you need to realise is that the financial institution won't be making you bankrupt over 130k when there are four others also liable for this amount. Effectively, you owe 26k if each party pays their share. Nowadays, the bank will simply collect the full amount off one or more individuals and then let each one of you sue the other for their contribution.

Expert:  Buachaill replied 2 months ago.

2. So, if you are not viewed as the person with assets, you will effectively end up being sued by one ofthe other four for your 26k share. Be aware that bankruptcy is not a debt collection tool in Ireland so where there is only one debt, it cannot be used to put someone in bankruptcy. However, be aware that if you do go bankrupt in Ireland, your American assets will be taken as well. Bankruptcy in Ireland is global.

Expert:  Buachaill replied 2 months ago.

3. What you should do at this stage is to arrange for each of the other four to pay their 26k share and effectively pay off the bank. The amounts are small and don't merit getting involved in fighting the bank. If there are legal proceedings in the High Court and you have an award of costs levied against you this amount could double with the payment of legal costs. In Ireland, unlike America the losing party pays the other sides legal costs.

Expert:  Buachaill replied 2 months ago.

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