Thursday, 5 September 2013
Insolvency service is up and running
There is going to be huge interest to see how the early applications for personal insolvency arrangements (PIA) work out under the new personal Insolvancy Act
The first batch of personal insolvency practitioners (PIPS) have been approved by the insolvency service of Ireland. Any application (PIA) must be conducted through a PIP.
In order for a debtor to be eligible for a PIA the following conditions must be met:
v The Debtor must be insolvent and there must be no likelihood on him/her becoming solvent within 5 years.
v The Debtor must be domiciled in the state or have been a resident for at least 1 year prior to the application being made.
v The Debtor’s debt must be all secured by a mortgage and cannot exceed €3,000,000 (unless the creditors consent).
v Debtor must have co operated for at least 6 months with the mortgage arrears process.
v The debtor is not subject to a debt settlement arrangement or debt relief notice.
v The debtor has not previously applied for a PIA.
A Few things to note:
v A creditor cannot be forced to accept a sum that is less that the value of the secured asset – the value is market value less cost of realising the asset, i.e sale.
v There are certain debts that cannot form part of a PIA – E.g. Family law maintenance payments, Criminal Court fees, damages from personal injury actions.
v Income/Lump Sum from pension can be used to pay off debts.
For further information on personal Insolvancy issues contact Brendan Dillon today. He holds a certificate in Personal Insolvency from the Law Society. 012960666/0862648280.