Debt Relief Notice: Step 5
What happens during the supervision period of my Debt Relief Notice?
If your application is successful you and your creditors will be under some conditions for the next 3 years. These 3 years are called the supervision period.
What obligations will I be under?
- If there has been a material change in circumstances (e.g. you change address), you will need to contact the Insolvency Service.
- If you get a gift or a payment worth €500 or more, you will need to contact the Insolvency Service. They will then ask you to give them half of what you got so that they can pay this to your creditors. When you have paid half of what you owe, your Debt Relief Notice will end and the other half will be written off.
- If your income increases by €400 or more per month, you will need to contact the Insolvency Service. They will then ask you to give them half of this increase so that they can pay this to your creditors. When you have paid half of what you owe, your Debt Relief Notice will end and the other half will be written off.
- If you want to get a loan or credit of any kind of more than €650, either on your own or with someone else, you will need to tell the lender that you have a Debt Relief Notice.
Will my credit rating be affected?
If your creditors are part of the Irish Credit Bureau or any similar credit-referencing agency, they will most likely have made reports on your credit rating about your missed payments. There is no specific rule about how any of these credit-referencing agencies should treat your Debt Relief Notice, each will have their own approach.
If I have a Debt Relief Notice, can I apply for any of the other insolvency solutions?
A Debt Relief Notice is intended to give you a fresh start. If you find yourself in financial difficulty in the future, and are struggling to meet your repayments on any loans that you have at that time, call us on 0761 07 2000 to speak to a trained MABS adviser about the best solution for you.
In order to apply for another insolvency option, you must wait 3 years from the date your debts were written off under a Debt Relief Notice, usually the date your supervision period ended.
Will my information be made public?
Your name, address and year of birth will be on a public register on the Insolvency Service website.
What are the offences?
These are things that you are not allowed to do while your Debt Relief Notice, Debt Settlement Arrangement or Personal Insolvency Arrangement are in place. These include:
- Giving false or misleading information on your application
- Not meeting your obligations while your Debt Relief Notice, Debt Settlement Arrangement or Personal Insolvency Arrangement are in place
- Hiding information or providing false documents to support your application or when requested by the Insolvency Service of Ireland to provide information
- Fraudulently giving away assets worth more than €400 to avoid any of your obligations under the Act
- Taking out a loan or getting any other type of credit of more than €650, either in your own name or with someone else, without telling the lender or creditor that you have an insolvency arrangement
Committing an offence can have serious consequences. If you are found guilty of a serious offence,you may face a fine of up to €100,000 and / or five years in prison. A lesser offence carries a fine of up to €5,000 and / or 12 months in prison. If in doubt, get advice from the Insolvency Service of Ireland.
What obligations are my creditors under?
- They cannot keep writing or calling to collect the debt that is included in your Debt Relief Notice.
- They must stop any legal action taken on foot of the debt included in your Debt Relief Notice, unless the legal action is for a criminal offence.
- They cannot repossess any of your things to pay off the debt that is included in your Debt Relief Notice application, unless they own those things or have security over them (e.g. a car or television you bought on hire purchase).
- They cannot end any agreement they have with you because you have a Debt Relief Notice or your account was in arrears.
Your creditors also have a right to object to your Debt Relief Notice if they think that you were not eligible to apply or if they feel they have not been treated fairly. The court will then decide what to do with this objection.