What is Personal Insolvency?
Personal Insolvency means that an individual is not able to pay their debts as they fall due, while maintaining a reasonable standard of living. Personal insolvency solutions are available so that the persons debts can be written down/rearranged, and they can return to solvency and a brighter future.
What is the personal insolvency act 2012/2015?
These acts contain the legislation which governs insolvency arrangements in Ireland, which allow people to deal with their debts and return to solvency.
Will I lose my family home?
In most cases you will get to keep your family home as part of a successful Personal Insolvency Arrangement (PIA). The intention of the legislation is to always retain the family home as long as it is appropriate to your circumstances.
I am in the repossession court. Is it too late?
No. A lot of debtors only consult a Personal Insolvency Practitioner (PIP) when things have gotten to this stage. We can meet with you and start the process, and we can provide a letter confirming that you are consulting with a PIP, which should result in your hearing being adjourned.
What is the Abhaile Scheme?
Abhaile is a state funded scheme for distressed borrowers who are in arrears on their home mortgage. Under the scheme your consultation with a Personal Insolvency Practitioner is paid for by the state. Your PIP or MABS will be able to tell you if you qualify for this scheme, and will be able to obtain a voucher on your behalf.
Will my mortgage be written off as part of a Personal Insolvency Arrangement (PIA)?
Your mortgage will not be written off, but if you are in negative equity, it may be written down to the actual value of the property, or it may be restructured in some way based on what you can afford.
What does a Personal Insolvency Practitioner (PIP) do?
A Personal Insolvency Practitioner (PIP) acts as an intermediary between the debtor(you), and your creditors(who you owe money to). The PIP applies to the court for a protective certificate on your behalf, meaning you cannot be pursued by your creditors, and during this time the PIP consults with you and your creditors in order to formulate and eventually agree an insolvency arrangement which will become legally binding.
I am not in steady employment. Can I apply for an insolvency arrangement?
Insolvency arrangements are suitable for self-employed people and even if you are unemployed there may be an insolvency solution which is suitable for you.
How long does an insolvency arrangement last?
A Debt Settlement Arrangement (DSA) lasts for a normal maximum term of 5 years, and a Personal Insolvency Arrangement (PIA) lasts for a normal maximum term of 6 years, but arrangements can be shorter than this, depending on the circumstances. At the end of the arrangement, all unsecured debt will have being written off or repaid.
Will I have to deal with my creditors?
As your Personal Insolvency Practitioner (PIP) we will apply to the court for a protective certificate. Once this issues you are protected from, and do not have to deal with your creditors for 70 days(with a possible extension). During this time we will deal with your creditors and attempt to formulate an arrangement.
What is a protective certificate?
A certificate issued by the Court which offers you and your assets protection from legal proceedings by creditors while you are applying for a PIA. In general a Protective Certificate remains in force for 70 days but it may be extended in limited circumstances.
Will this affect my credit rating?
The fact that you will be in an insolvency arrangement will be noted on your credit record. However most people who enter an insolvency arrangement are already in arrears, so have already damaged their credit rating, and the fact that they are dealing with their debts will actually improve the situation.