What is a Protective Certificate and Reasonable Standard of Living?

What is a Protective Certificate and Reasonable Standard of Living?

By Sara Garland
Thursday, 25th October 2018
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What is a Protective Certificate and Reasonable Standard of Living?blog1

In our previous blog, our Personal Insolvency Manager Sara Garland outlined the different debt solution options available if you are insolvent (unable to pay your debts as they fall due). In this blog, I will walk you through the mechanisms that are in place to protect you if you decide to go down the personal insolvency route.

Protective Certificate

If you are applying for a Debt Settlement Arrangement (DSA)  or a Personal Insolvency Arrangement (PIA) , the Court issues a protective certificate which protects you and your assets from any legal proceedings. The protective certificate generally lasts for 70 days with the possibility of an extension in limited circumstances. During this period, creditors, such as banks or other financial institutions, cannot contact you about or pursue your debt while your personal insolvency team puts a plan in place. We often find that our clients have come to dread the letters and phone calls about, for example, mortgage arrears that they do not have the capacity to repay. A respite from this communication from creditors for 70 days makes a big difference to our clients’ lives and general wellbeing and gives them breathing space while our team works on a solution.

Reasonable Standard of Living

The term reasonable standard of living has been the subject of intense debate since it was introduced to the insolvency conversation as it is difficult to quantify how much income people need to live modestly while they are trying to tackle their debt problem. The Insolvency Service of Ireland (ISI) states that “a reasonable standard of living is one which meets your physical, psychological and social needs.” Read more here. The reasonable standard of living that is applied to debtors who are trying to find a solution covers necessities such as food, clothing and health. It also caters for special circumstances, such as disabilities. To calculate your household’s reasonable living expenses use the ISI’s calculator here.

Why choose Grant Thornton Debt Solutions?

There are over 100 personal insolvency practitioners (PIPs) registered in Ireland. So, who do you choose? How do you know if Grant Thornton Debt Solutions is the right choice for you?

Grant Thornton Debt Solutions is one of the largest long-standing personal insolvency practices in Ireland. We offer a nationwide free and confidential advice service. Our model is not daunting or intimidating – we are available to answer your call, to listen patiently, to ask the right questions, to assess your situation and meet you at a place where you are comfortable. We can meet you for a coffee or at one of our nationwide offices – the choice is yours. We can help you and finding a solution to your debt problem is our priority.

In my next blog, I will discuss the Insolvency Service of Ireland (ISI) most recently published quarterly statistics. 

Contact Us

Sara Garland i​s a Personal Insolvency Advice Manager at Grant Thornton Debt Solutions. . She has a reputation for an understanding, considerate approach and will go above and beyond to get the required results for her clients. Jennifer and the personal insolvency team at Grant Thornton Debt Solutions meet people throughout Ireland who are in financial distress.

This article is provided for general information purposes only and does not constitute professional advice. We advise you to contact us about your specific situation and we will provide the appropriate counsel and assistance in terms of the debt solution options available.

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