Personal Insolvency Arrangement

A Personal Insolvency Arrangement (PIA) is suitable for the agreed settlement of secured and unsecured debt. It is not sufficient to be in negative equity to avail of this relief. You must be insolvent i.e. unable to pay your debts as they fall due.
One important issue is whether your debts are secured or not. A secured debt is a loan on which property or goods are available as security against non-payment. Mortgages are the most common secured loans. In general, debts such as bank loans and credit card debt are unsecured, but if they are rolled up into your mortgage, they become secured loans.

Eligibility Criteria:

  • For secured debts of up to €3m but can be for higher with agreement of your creditors.
  • You must have co-operated for at least 6 months with any mortgage arrears process approved or required by the Central Bank and not been able to reach an agreement.
  • It also covers unsecured debts of any amount.
  • You must have co-operated for at least 6 months with any mortgage arrears process approved or required by the Central Bank and not been able to reach an agreement.
  • You must be domiciled in the Republic of Ireland or you must have, within the past year, been resident in the Republic of Ireland or had a place of business there.
  • You must have been engaged with your secured creditors for at least 6 months before you make an application.
  • Ineligible if more than 25% of your qualifying debts were incurred in 6 months before the application.
  • You cannot have availed of a PIA previously.
  • You cannot be the subject of either a DRN now or within the last 3 years, a DSA now or within the last 5 years.
  • You cannot be a bankrupt or subject to a bankruptcy measure or have been discharged from bankruptcy within the last 5 years

How it works:

  • You must complete a Prescribed Financial Statement and make a statutory declaration confirming it is complete and a true statement of your affairs.65% by value of your overall creditors must approve the arrangement which must include 50% by value of secured creditors and 50% by value of unsecured creditors.
  • It lasts for 6 years and may be extended by another one year.
    During the term of the PIA, the debtor is protected from legal proceedings by his/her creditors. You must apply through a qualified and registered Personal Insolvency Practitioner (PIP). www.isi.gov.ie.
  • Debt consolidation, parking of debt, interest only options, sale of non-performing assets, debt plans, debt forgiveness at the end of the arrangement are all options which may be considered under a Personal Insolvency Arrangement.
  • If you comply with the arrangement, as agreed, you will be discharged from the debts which are the subject of the PIA ,at the end of the period, and you will be solvent.

One important issue is whether your debts are secured or not. A secured debt is a loan on which property or goods are available as security against non-payment. Mortgages are the most common secured loans. In general, debts such as bank loans and credit card debt are unsecured, but if they are rolled up into your mortgage, they become secured loans.

If you feel that a Personal Insolvency Arrangement would be the best way forward for you or you would like to discuss the options confidentially, please contact us.
This service will focus totally on your specific, unique circumstances, providing you with confidential, expert support to allow you to avail of relief under the new legislation.
Our team understand your needs and concerns and are able and ready to assist you in making the key decisions to move on with your life.