Am I insolvent?
In relation to the Personal Insolvency Acts 2012-2015 being insolvent is construed as meaning that the debtor is unable to pay his or her debts in full as they fall due.
To be eligible for a Personal Insolvency Arrangement or Debt Settlement Arrangement you need to be insolvent. There are however additional eligibility criteria. Your PIP will assess your solvency and eligibility by reviewing a completed Prescribed Financial Statement and meeting with you to discuss your financial situation.
What is a Personal Insolvency Arrangement?
A Personal Insolvency Arrangement (PIA) is an insolvency solution for people with unsecured and secured debts. Secured debt is a debt backed or secured by an asset (e.g. a housing loan where a house is mortgaged to secure the loan debt).
It is a formal agreement with creditors that will write off some unsecured debt and restructure any remaining secured debt, while keeping the person in their home where possible.
What is a Debt Settlement Arrangement?
A Debt Settlement Arrangement (DSA) is an insolvency solution for people who have unsecured debts – credit cards, loans, overdrafts etc. For mortgage-related debt please see Personal Insolvency Arrangement.
A Debt Settlement Arrangement is a formal agreement with creditors that allows for some write off of debt. With this solution a person agrees to pay a percentage of their overall debt over a specified period of time. At the end of that period of time they will be solvent.
What is a Debt Relief Notice?
If you have a low income, few assets and debts that you can’t repay, then a DRN could be the right solution for you.
It allows for the write-off of qualifying debt up to €35,000 subject to a 3-year supervision period.
We do not provide this service. Please contact your local MABS office who provides this service for Free.
By entering a PIA/DSA will it affect my standard of living?
Generally speaking it will have some impact. It is expected that you would adhere to the terms of the agreement which can last generally up to 6 years. It will impact your ability to obtain new credit. At a minimum, depending on your family circumstances you will be provided with Reasonable Living Expenses (RLEs) as part of the arrangement which can be also varied to take account of any special circumstances.
For more information see our links tab.
How Much will a PIA/DSA cost?
Who pays for this?
If you are eligible under the State funded Abhaile scheme then your initial consultation, assessment and assistance in completing your Prescribed Financial Statement is free. If you are not eligible under the Abhaile scheme, there may be a charge for the initial consultation. For more details on your eligibilty under the scheme see www.mabs.ie.
Our Fees are agreed with your Creditors once the arrangement is approved. The fee is essentially a reduction in the dividend the Creditor can normally expect. The fee comes out of your contribution to the arrangement which used to pay professional services, outlays and your creditors. The fee varies according to the length of the arrangement and the complexity of the case.
The Bank and/or Vulture Fund are saying they have strict instructions to repossess my home at the next Court sitting. Am I too late for a PIA?
No. If the PIP agrees to take you the debtor into an arrangement they then can apply to court on your behalf to injunct all legal proceedings against you for at least 70 days (but this can be extended), so that a formal proposal can be put in place to your creditors.
I already have a possession order against me. Am I too late to enter into a PIA?
No. You can still enter the process but must do so swiftly.
I bought a holiday home in Spain, and a ski Lodge in Bulgaria. I can no longer service the debt. Can I include these in part of a PIA?
Yes.You can include all debt in the European Union if you are deemed insolvent and meet eligibility criteria.
This sounds great. Can all types of debt be restructured/written off?
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