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.