Bankruptcy may be an insolvency solution for you if your debt is over €20,000.
May be an option for you if it is unlikely that you can repay your debt within 3 years.
A facility where part of the debt is written off and part of it is repaid during a time period.
A Personal Insolvency Arrangement (PIA) covers both secured and unsecured debts.
Contents
| Case Study: Failed Business which was a limited company | |
| Reason for Debt: | Failed Business which was a limited company. |
| Debtor Profile: | Married professional in his 40’s with one child. Now PAYE Employee. |
| Family Home: | Mortgage being paid in full and has a large amount of equity. Excluded and entered into a DSA (Debt Settlement Arrangement). |
| Debt Amount: | Unsecured debt amounts to €1.2 million. |
| Type of Debt: | A number of large personal guarantees, residual debt from two investment properties and large revenue debt. |
| Arrangement: | 5 year DSA. Contributed €80,000 over 5 years. Over 65% of his creditors voted in favour of DSA. |
| Return for Creditors: | Creditors got a 5.8% return. |
| Outcome for Debtor: | €1,120,000 debt legally written off. Family home and large equity in same safeguarded. Pension of €100,000 also protected and excluded. |
