Can I deal with or write off a debt in Ireland?
Yes — there's free help and several statutory routes to write off or restructure debt. MABS is the State's free, confidential debt-advice service. Three insolvency solutions exist: a Debt Relief Notice (DRN) writes off mainly unsecured debt up to €35,000 over a 3-year supervision period; a Debt Settlement Arrangement (DSA) restructures unsecured debt (no upper limit) over ~5 years; and a Personal Insolvency Arrangement (PIA) covers secured debt up to €3 million plus unsecured, over up to 6 years. Both the DSA and PIA need creditor support of 65%. On the Statute of Limitations, a simple contract debt becomes statute-barred after 6 years — but you must actively plead that defence, and any part-payment or written acknowledgement restarts the clock. Bankruptcy (debts over €20,000) is discharged after 1 year. In short: yes, via MABS and the insolvency solutions.
📋 The rules
- MABS gives free, confidential debt advice
- Debt Relief Notice: write off up to €35,000 (3 years)
- DSA: unsecured debt, ~5 years, 65% creditor support
- PIA: secured debt up to €3m, up to 6 years
- Simple debts are statute-barred after 6 years
🔓 Exceptions
- Statute-barred doesn't erase the debt — you must raise the defence
- Each insolvency procedure can be used once in a lifetime
- You apply via an Approved Intermediary or Personal Insolvency Practitioner
⚠️ Penalties & fines
The key figures: DRN up to €35,000 over 3 years; DSA unlimited unsecured over ~5 (+1) years; PIA secured up to €3 million over 6 (+1) years; bankruptcy for debts over €20,000, discharged after 1 year. The simple-contract limitation period is 6 years. The ISI has waived its fees for the three debt solutions until 31 December 2026, and MABS advice is always free; borrowers in serious mortgage arrears can get free legal help via Abhaile. You apply through an Approved Intermediary (DRN) or Personal Insolvency Practitioner (DSA/PIA) — not yourself. Beware a myth: "if I ignore a debt for 6 years it automatically disappears" is false — the 6-year limit only gives you a defence you must actively raise, the debt itself isn't erased, and any part-payment or written acknowledgement resets the clock. To act: contact MABS first for free advice.
📎 Official sources
- Citizens Information — personal insolvency options →
- MABS — personal insolvency →
- Citizens Information — what is bankruptcy →
❓ Frequently asked
Where can I get help with debt?
MABS, the Money Advice and Budgeting Service, is the State's free, confidential and independent debt-advice service. It can help you understand your options, deal with creditors and apply for formal debt solutions. There's no charge. For mortgage arrears, the Abhaile scheme also gives free financial and legal advice to people at risk of losing their home.
Can a debt be written off?
Yes, through the statutory insolvency solutions. A Debt Relief Notice can write off mainly unsecured debt up to €35,000 over a three-year period for people with very low income and few assets. The Debt Settlement Arrangement and Personal Insolvency Arrangement restructure larger debts over several years, with part of the debt often written off at the end.
What's the difference between the debt solutions?
A Debt Relief Notice suits low unsecured debts up to €35,000. A Debt Settlement Arrangement covers unsecured debt with no upper limit over about five years. A Personal Insolvency Arrangement deals with secured debt, such as a mortgage, up to €3 million plus unsecured debt over up to six years. Both the DSA and PIA need creditor agreement.
Does a debt disappear after six years?
Not exactly. Under the Statute of Limitations, a simple contract debt generally becomes statute-barred after six years, meaning a creditor can't enforce it through the courts if you raise that defence. But the debt isn't erased, you must actively plead the defence, and any part-payment or written acknowledgement restarts the six-year clock.
How do I apply for an insolvency solution?
You can't apply directly yourself. For a Debt Relief Notice, you go through an Approved Intermediary, usually via MABS. For a Debt Settlement Arrangement or Personal Insolvency Arrangement, you work with a Personal Insolvency Practitioner. The Insolvency Service of Ireland has waived its application fees for these solutions until the end of 2026.
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