5 Year Debt Settlement Arrangement

5 Year Debt Settlement Arrangement

By sara
Friday, 28th September 2018
Filed under:

€132,000 Written off for 5 year Debt Settlement Arrangement Client


Larry is 36 and works full time as a fitter.  He is living in Co. Laois and has a child from a previous relationship.  He is renting a house and pays his partner monthly maintenance.

Larry lost his job during the recession and was unemployed for nearly 5 years. This long period of unemployment coupled with stress of his financial situation caused Larry to suffer from depression and he moved in with a family member.  During this time, he didn’t engage with his mortgage provider.  The property was repossessed and sold leaving him with a shortfall of approximately  €111,000.  Larry also has other debt, including an old car loan, credit card debt and an overdraft.  In total, his debt amounts to €132,000.

Larry has a small pension of €24,000, which he cannot access until he is 65.  He no longer contributes to the pension.  He has no other assets.

Now that Larry is back into employment, he would like to resolve his financial situation so he can move on with his life.  


Larry met with a case manager from Grant Thornton Debt Solutions after work in Co. Laois.  They went through all of the options available to him.  Based on his financial situation, he could afford to give his creditors €280 a month.  This was after living reasonably and paying maintenance and rent.  Larry also has a long-term illness.  His creditors allowed for the extra medical costs he incurs each month including his health insurance costs.

Once the protective certificate was granted, Grant Thornton Debt Solutions began to negotiate the proposal they agreed with the Larry.  His main creditor, the mortgage provider, agreed with the proposal.


  • Larry pays €280 each month for 5 years.  Over 5 years Larry will pay €16,800 into his arrangement.
  • He keeps his pension of €24,000, as he cannot get access to it.
  • Grant Thornton Debt Solutions deducted their fee from the monthly amount and the remaining balance is shared pro rata to all unsecured creditors.
  • After the 5 years, Larry is returned to solvency and all his remaining debt will be written off in full.

In a similar situation?  Contact Us.

If you are in a similar situation to Larry, a Debt Settlement arrangement (DSA)  could be an option to help you overcome your debt problem.  For free and confidential advice, contact us at 087 7667731.

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