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.