Independents4Change TD Mick Wallace has been adjudicated bankrupt at the High Court.
The application to make him bankrupt was made last month by a subsidiary of the US fund Cerberus arising out of a debt of €2 million.
The subsidiary, Promontoria (Aran) Limited, was granted orders earlier this year directing Mr Wallace to repay €2m in loans.
It took over the loans from Ulster Bank. The loans were to Mr Wallace's company and personally guaranteed by him.
The High Court heard today that Mr Wallace's total debts exceed €30m.
Mr Wallace had sought adjournments to allow him to prepare a personal insolvency arrangement (PIA) and make efforts to save his family home.
The court heard a Personal Insolvency Practitioner for Mr Wallace had written to ACC Loan Management, his dominant creditor, to ask if the bank would waive a secured debt cap to allow him to prepare a personal insolvency arrangement.
ACC had replied it was not prepared to do so, the court heard.
Lawyers for Mr Wallace said he had a statement of affairs in court. However, barrister Keith Farry said there was no reality, in the circumstances, to Mr Wallace further defending the bankruptcy application as he could not make a proposal for a PIA.
Ms Justice Caroline Costello said she was satisfied the fund had met the requirements of the Bankruptcy Act and she granted the petition to adjudicate Mr Wallace a bankrupt.
Mr Farry said his client would co-operate fully with the bankruptcy process.
Promontoria is owned by US fund giant Cerberus, the fund at the centre of allegations made in the Dáil by Mr Wallace concerning the acquisition of Nama's €5.7bn Northern Ireland portfolio.
The substance of those allegations is now subject to investigations in the UK and US.
The law disqualifying a bankrupt from being a member of the Dáil was abolished in 2014 so Mr Wallace'sbankruptcy will have no effect on his Dáil seat.
