A NUMBER of informal and general inquiries have been made to the Bar Council about the position of barristers who might face bankruptcy, The Irish Timeshas learned.
Barristers who are declared bankrupt may be able to continue to practise, according to the chairman of the Bar Council.
Michael Collins SC told The Irish Timesthat there was nothing in the Bar Council's Code of Conduct to prevent it, though there was a general prohibition on bringing the profession into disrepute.
He said that no formal inquiry had been made to the Bar Council about this issue, but a number of general inquiries had been made informally. “There is no hard evidence of anyone reaching that situation,” he said.
The director of the Bar Council, Jerry Carroll, also said that there had been general queries about the implications of bankruptcy on a barrister’s ability to practise, but none of a specific nature.
“If you were engaged in fraudulent activity then you would be bringing the profession into disrepute,” Mr Collins said, “but if the difficulties arose from general economic circumstances you wouldn’t. Each case would be considered on a case-by-case basis.”
The Solicitors Acts require a solicitor in Ireland who is bankrupt to declare this when applying for a practising certificate, but this would not necessarily lead to him or her not being allowed practise, according to the Law Society’s director general, Ken Murphy.
Each application would be assessed on a case-by-case basis, and one option would be to issue a practising certificate subject to conditions, he said.
These conditions would be likely to involve a limited practising certificate permitting practise as an assistant solicitor or an in-house solicitor with a company.
A bankrupt solicitor could not be a principal in private practice as he or she could not hold a bank account.
In the UK, bankruptcy does not prevent a barrister from practising, but the Bar Standards Board (BSB) must be informed if a barrister is the subject of a bankruptcy order or enters an individual voluntary arrangement (IVA).
This is a formal and legal arrangement to pay creditors through the courts, and can last up to five years. It is less restrictive than bankruptcy.
Failure to inform the BSB, including providing details of the circumstances giving rise to the bankruptcy order or the IVA, can lead to disciplinary proceedings.
In the UK a solicitor cannot practise if bankrupt.
When a solicitor enters into bankruptcy his or her practising certification or registration is suspended.
Those likely to be made bankrupt can apply to have their certificate suspended, and steps must be taken to protect their clients before bankruptcy.
In all cases, a solicitor in the UK who is declared bankrupt must cease practising immediately and inform the Law Society of the bankruptcy. The Solicitors Complaints Bureau can lift a suspension on appeal.