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: In Debt due to impact of recession | |
| Reason for Debt: | In Debt due to impact of recession. |
| Debtor Profile: | Mr is an Electrician and Mrs works part time. One dependent in college who has two years left. They are not receiving any support from the Suzi grant. |
| Family Home: | In negative equity by €110,000. Family home is worth €250,000 and they owe mortgage lender €360,000. There are two judgement mortgages on family home. |
| Debt Amount: | Unsecured debt amounts to €1.5 million, which includes judgement mortgages, revenue, credit union debt and personal guarantees. |
| Type of Debt: | Trade creditors, lease hire debt, credit union debt, family debt, personal loans, revenue debt and credit card debt. |
| Arrangement: | 2 year PIA to allow them support their child in college. House written down to €280,000 based on affordability. Revenue opted in and all unsecured debt written off and judgement mortgages removed from family home. |
| Return for Creditors: | Creditors got a 2.3% return. |
| Outcome for Debtor: | Home safeguarded and negative equity written off. Unsecured legally written off and judgement mortgages removed. Allowed to support child in college. |
