Insolvency Deals

Debtors keep homes as court accepts insolvency deals outside guidelines

Landmark court ruling rebuffs AIB and Bank of Ireland’s efforts to block Personal Insolvency Arrangements. A High Court judge, in a significant decision concerning the effect of “reasonable” living expenses guidelines in Personal Insolvency Arrangements, has approved separate insolvency deals aimed at ensuring a couple and their four children, and a separated mother of three, remain in their homes.

Had the PIAs not been approved, there was a concern about possible bankruptcy or homelessness. The effect of the couple’s PIA will mean some €331,000 will be written off their debt to Bank of Ireland while some €74,000 will be written off the woman’s €171,000 debt to Allied Irish Bank.
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