Debt Write Off | Financial Services Blog

Court approves €6.1m debt write-off for Co Kildare couple

Thomas Flanagan and Jean Errity took loans for property development hit by planning difficulties. The High Court has approved a Personal Insolvency Arrangement allowing a couple to debt write-off more than €6 million off their debts. Mr. Justice Denis McDonald said he was satisfied with the arrangement sought on behalf of Thomas Flanagan, a retired garda, and his wife Jean Errity, a civil engineer, both of Hortland, Donadea, Co Kildare.

The couple’s debt write-off included €6.1 million owed to Ulster Bank, €419,000 owed to Permanent TSB, €150,000 owed to a building company called MOF Construction Ltd and €160,000 owed to Pepper Finance. As part of the arrangement, the couple retain their four-bedroom family home which is valued at €430,000 and will continue to make mortgage payments on that property. They have also been afforded reasonable living expenses. Read more

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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