Couple's bankruptcy set aside in first application of its kind

The High Court has annulled the bankruptcy of a couple from Knocknaveigh, Virginia, County Cavan, in what represents the first application of its kind since new insolvency legislation came into force. Ms Justice Caroline Costello set aside the bankruptcy orders for Martin Byrne and Catherine White Byrne, who had been adjudicated bankrupt earlier this year. The couple contended they were misled by a financial advisor regarding available alternatives to bankruptcy. Their solicitor argued that a viable Personal Insolvency Arrangement with creditors existed but was not presented to them. Additionally, the couple had not met with a Personal Insolvency Practitioner prior to their application, contrary to statutory requirements. Ms Justice Costello found the circumstances satisfied grounds for annulment. The Irish Mortgage Holders Organisation, which supported the application, indicated other cases in similar circumstances remain pending before the courts.