Accelerated Personal Insolvency Arrangement

Accelerated Personal Insolvency Arrangement

By sara
Monday, 1st October 2018
Filed under:

Family Home Mortgage Restructured and €300,000 of Unsecured Debt Written Off


Joe and Catherine are married, in their 40’s, have two children and are living in Wicklow. Joe is working in the financial services industry and is commuting each day to Dublin for work. Mary recently started a new business after a period of unemployment and has been self-employed for just under a year. Their family home currently has small amount of equity with a mortgage balance of just over €400,000. They are now in substantial arrears. The couple have been paying €1,500 a month towards their mortgage, but their full mortgage payment is €2,400 a month. They also have other debt with multiple unsecured creditors, such as credit cards, personal loans, and a shortfall on a buy to let property. This property was repossessed and sold following a period where the debtors had problem tenants who refused to pay rent. Because of this, the couple had no way of meeting the mortgage payments. The total of these debts amounts to €300,000.


Joe and Catherine met with a case manager from Grant Thornton Debt Solutions at a location that suited them and discussed their available options. Once the debtors where happy that they fully understood the process and outcome of their arrangement they engaged Grant Thornton Debt Solutions to commence work on their proposal. Following a period of assessment, a protective certificate was granted and Grant Thornton Debt Solutions engaged with all of their creditors and commenced negotiations.


  • 6 month accelerated Personal Insolvency Arrangement (PIA).
  • Costs to reasonably live where allowed; in addition to these set costs, the debtors were allowed additional extra costs such as life cover, childcare costs, extra petrol for Joe travelling to work each day and local property tax.
  • After these expenses the debtors were left with a monthly surplus of €1,900pm.
  • Grant Thornton Debt Solutions restructured the mortgage to an affordable fixed amount of €1900pm. The mortgage term was extended to retirement age and all arrears were capitalised. This meant the mortgage would be paid back in full by the end of the mortgage term and gave the debtors comfort that they would never be expected to sell their family home.
  • Taking into consideration the allowable costs to live and also the restructured mortgage payment amount, the debtors had no monthly surplus left to offer to a 6 year arrangement.
  • A family member agreed to give them a lump sum of €20,000; this was offered as a full and final settlement towards all of their unsecured creditors.
  • Grant Thornton Debt Solutions deducted their fee from the lump sum and the remaining amount was shared pro rata to all unsecured creditors.
  • Joe and Catherine have now returned to solvency.

In a similar situation? Contact Us

  • If you are in a similar situation to Joe and Catherine, a Personal Insolvency Arrangement (PIA)  could be an option for you to overcome your debt problem. For free and confidential advice, contact us at 087 7667731.

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