Personal Insolvency
Arrangement
Personal Insolvency
Arrangement
A personal Insolvency Arrangement is a formal debt solution that deals with your unaffordable mortgage and other debt repayments.
A PIA can include both secured debts (such as mortgages) and unsecured debts (such as credit cards and personal loans).
A PIA can last up to 6 years (but can be 7 years in some cases) and during this time the creditors named in your PIA cannot take any legal or debt collection action against you.
A PIA allows you to settle and or restructure your debts over a period of 6 years (7 years in some cases)to make it more affordable and your debts are reduced to allow you to repay what you can afford , while offering legal protection form your creditors.
You must apply for a PIA through a Personal Insolvency practitioner (PIP).
A PIA is only suitable for people with certain circumstances:
- You are struggling with your mortgage payments
- You cannot afford to pay your debts as they fall due
- You have debt owning to at least 1 secured creditor
“On completion of your PIA any
remaining unsecured debt is written off.”
Colm Arthur PIP
“I see it as my professional responsibility to explore
all options to restructure your debt with a specific focus
on ensuring that you remain in your family home“
– Colm Arthur PIP
Here’s how a Personal Insolvency Arrangement works/ what you need to know
You apply for a PIA through a Personal Insolvency Practitioner (PIP). A PIP is a professional who is licensed by the Insolvency Service of Ireland (ISI) and is qualified to put forward your PIA application.
You must swear a Prescribed financial Statement (PFS) during this process of application which is drafted by the PIP. All information in the PFS must be true and accurate.
In a PIA you negotiate affordable lower monthly repayments towards your unsecured debts (credit cards, loans etc..) which last the term of your PIA or shorter depending on your circumstances. Interest and charges are frozen. On completion of your PIA any remaining unsecured debt is written off.
If the ISI and the court are happy with your application, your PIP gets 70 days to develop a proposal, to be put to your creditors which outlines the monthly PIA payments which will be paid to your mortgage and debts.
Here’s how a Personal Insolvency Arrangement works/ what you need to know
You apply for a PIA through a Personal Insolvency Practitioner (PIP). A PIP is a professional who is licensed by the Insolvency Service of Ireland (ISI) and is qualified to put forward your PIA application.
You must swear a Prescribed financial Statement (PFS) during this process of application which is drafted by the PIP. All information in the PFS must be true and accurate.
In a PIA you negotiate affordable lower monthly repayments towards your unsecured debts (credit cards, loans etc..) which last the term of your PIA or shorter depending on your circumstances. Interest and charges are frozen. On completion of your PIA any remaining unsecured debt is written off.
If the ISI and the court are happy with your application, your PIP gets 70 days to develop a proposal, to be put to your creditors which outlines the monthly PIA payments which will be paid to your mortgage and debts.
You will NOT be able to do a Personal Insolvency Arrangement if:
- You have gained 25% or more of your unsecured debt in the past 6 months
- You are currently subject of a Debt Relief Notice or have been in the last 3 years
- You are subject of a Debt Settlement Arrangement now or within the past 5 years
- You have been the subject of a PIA before
- You are currently bankrupt or have been discharged form Bankruptcy in the past 5 years
- You have received a Protective certificate issued in respect of a PIA within the last year.
- You can only have one PIA in a lifetime
Examples Of Personal
Insolvency Arrangement
Couple live with their 3 children in their detached home. Mr. is working and Mrs. is a stay at home mum.
72-month Personal Insolvency Arrangement
Mortgage written down to agreed market value of the home. Balance written off at end of a successful Personal Insolvency Arrangement. Asset of bog land worth €2000 and a storage yard worth €1500. as agreed in the arrangement Mr. retains some of a ½ acre piece of land for his business which is run from home . Bog land to be sold and proceeds to be made available to the arrangement.
Returned to solvency at the end of successful PIA.
Example 1
Couple live with their 3 children in their detached home. Mr. is working and Mrs. is a stay at home mum.
72-month Personal Insolvency Arrangement
Mortgage written down to agreed market value of the home. Balance written off at end of a successful Personal Insolvency Arrangement. Asset of bog land worth €2000 and a storage yard worth €1500. as agreed in the arrangement Mr. retains some of a ½ acre piece of land for his business which is run from home . Bog land to be sold and proceeds to be made available to the arrangement.
Returned to solvency at the end of successful PIA.
Example 2
Mrs. lives with husband and his 2 children in his semidetached house. Debt arose from a structural problem with the former PPR that Mrs. had before she married. House is not insured and cannot be rented.
6-month Personal Insolvency Arrangement
No repayment capacity. husband contributed €5,000 to the arrangement. Property to be handed back to creditor at the end of a 6month PIA and total outstanding balance written off.
Returned to solvency at the end of successful PIA.
Example 3
Mr. and Mrs. live in their detached home with their 6 children one of which has special needs. Mr. is self-employed Mrs. is a stay at home mum.
72-month PIA
Total payment to creditors on unsecured debt during PIA €3134.88. Rest of debt written off at the end of a successful PIA.
Returned to solvency at the end of successful PIA
Example 4
Ms. is living with her 3 children on her own. She is separated from her husband. Works part- time and receives loan parents’ allowance.
72-month PIA
Total payment to unsecured debt during PIA €5901.26. Mortgage written down to agreed market value of the home. Balance written off at end of a successful PIA.
Returned to solvency at the end of successful PIA.
Request a meeting with a
Personal Insolvency practitioner
