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Archive: Jul 2016

  1. 53% Mortgage Write-Off Deal Approved

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    53% Mortgage Write-Off Deal Approved

    According to the news a Limerick couple had 53% written off their mortgage on the 12th of August 2015. It was reported that their lender had threatened them with repossession until their Personal Insolvency Practitioner stepped in to help them secured this deal.

    The couple can now hold on to their home and have secured a mortgage write-down of 53% under a new debt solution called a Personal Insolvency Arrangement (PIA).

    This type of solution will reduce down the debtor’s mortgage payment to a more affordable amount. It will also include the write down of mortgage debt and unsecured debts like credit cards, loans or overdrafts. The arrangement also give a debtor legal protection from their creditors for 6 – 7 years.

    It was reported that the Personal Insolvency Arrangement (PIA) was approved at the personal insolvency court in Ennis and that the Judge approved a €98,250 write down their  mortgage. According to the news the couple got into debt when the man suffered a stroke and his wife had to give up work to become his full time carer.

    A Personal Insolvency Arrangement is a debt settlement solution that was introduced by the Government through the Personal Insolvency Act 2012. It is a formal agreement that includes secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. If you are struggling to pay your secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts) then this could be the right solution for you.

    This type of solution will reduce down the debtor’s mortgage payment to a more affordable amount. It will also include the write down of mortgage debt and unsecured debts like credit cards, loans or overdrafts. The arrangement also give a debtor legal protection from their creditor for 6-7 years.

    The Personal Insolvency Arrangement approved provides the mortgage lender with the best option because they will get more out of it than if the property was sold. This case demonstrates that the personal insolvency system is working and it’s fantastic to see that anyone struggling with mortgage debt can now get the help they need.  Lots of cases like this have been approved since August 2015 and we will see a lot more mortgages restructured under Personal Insolvency Arrangements in the future. 

    If you have experienced a change in your circumstances and are finding it difficult to pay your mortgage and other debts then don’t panic there is help available.

    We can arrange a Free appointment for you with a Personal Insolvency Practitioner who will be able to find the best solution to help you deal with debt. 

    You maybe eligible to have some of your debt written off and maybe be able to have your payments reduced down to a more manageable amount. 

    Call us today on 01 4434125 to receive Free Debt Advice

    .McGonnell 27th July 2016

  2. Almost 1700 Debt Solutions Agreed in 2015

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    Almost 1700 Debt Solutions Agreed in 2015

    According to the Insolvency Service of Ireland statistics for 2015 there was a 70% increase in debt solutions agreed for that year.  The report also shows that 1687 people had debt settlement solutions agreed in 2015.

     

    These solutions usually involve the write down of credit cards, loans and mortgages where a person is unable to pay their debts as they fall due.

     

    There are four debt solutions now available to help anyone struggling with debt:

     

    A Debt Settlement Arrangement is a solution for unsecured debts, such as credit cards, bank/credit union loans and overdrafts. This solution features write-down and write-off of debts that cannot be repaid. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

     

    A Personal Insolvency Arrangement is a similar solution to the Debt Settlement Arrangement but it also includes mortgage debt and secured loans and, where possible, allows a debtor to keep their home. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

     

    A Debt Relief Notice is a solution for people with low income, no mortgage and very few assets. This solution allows for complete write off of debts up to €35,000 and can be applied for through an approved Intermediary, your local MABS office maybe an approved Intermediary.

     

    Bankruptcy is a solution for people for which the alternatives above are not suitable. The bankruptcy term has been reduced from 3 years to 1 year.

     

    Key statistics for 2015 include the following:

    Personal Insolvency Arrangements (PIAs) continue to be the most popular solution and the applications for debt solutions increased by 18% in the 3rd quarter.

     

    There was almost 1700 permanent debt settlement solutions agreed for debtors and here is the breakdown:

     

    641 Personal Insolvency Arrangements

    221 Debt Settlement Arrangements

    346 Debt Relief Notices

    479 Bankruptcies

     

    The Insolvency Service of Ireland was set up to help tackle debt problems in Ireland and since the introduction of the new debt solutions and the reform of bankruptcy more formal arrangements are being reached by borrowers and their lenders with the help of a Personal Insolvency Practitioner.

     

    All of these debt solutions are overseen by the Insolvency Service of Ireland and they became available when the Personal Insolvency legislation changed at the end of 2012. These solutions are designed to help any insolvent people struggling with unmanageable debt and these solutions will help them get back on track financially.

     

    The report by the Insolvency Service of Ireland also reveal that 3 out of 4 insolvency proposals put to creditors by Personal Insolvency Practitioner’s are being accepted and recent amendments to legislation mean that where creditors have rejected a proposed Personal Insolvency Arrangement, the borrower can seek a review of this decision by the Court.

     

    The Insolvency Service of Ireland also put a new initiative put in place last year to encourage greater engagement between creditors and Personal Insolvency Practitioners (PIP).  A PIP can now apply for a €750 payment from the Insolvency Service of Ireland for any insolvency arrangement that has been rejected by creditors, on condition that the arrangement must have proposed a return to all creditors that was greater than or equal to that which they would receive in bankruptcy. This should help PIP’s with the cost of taking a debtors case to court if a creditor rejects an insolvency arrangement put forward.

     

    Thousands of people in Ireland are insolvent and in deep mortgage arrears. It is very important for people who may be in fear of losing their homes to be aware that even if they have a court appearance date or are received threatening letters they should contact a Debt advisor or Personal Insolvency Practitioner to ask for professional help.

     

    As we can see from the figures released by the Insolvency Service of Ireland things are starting to move in the right direction and lots of people in debt are now getting the long awaited help they need.

     

    It’s really good to see that anyone burdened with debt has lots of different solutions now available to them.

     

    If you are struggling to pay to your credit cards, loans or mortgage,  please don’t worry as there is now help available.  We can arrange a Free appointment for you with a Personal Insolvency Practitioner who will able to see if you are eligible for a debt solution, just give us a call on 01 4434125 today.

     

    If you would like Free Debt Advice then let us arrange a FREE appointment for you with a Debt Advisor or Personal Insolvency Practitioner who will be happy to see if you are eligible to have your debts written off.  

     

    R.McGonnell 14th July 2016

     

     

     

     

     

     

  3. First Personal Insolvency Arrangement Approved

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    First Personal Insolvency Arrangement Approved

    The first Personal Insolvency Arrangement was agreed in Ireland on the 25th of January 2014.

     

    A Personal Insolvency Arrangement is a formal debt settlement solution that helps a debtor deal with unaffordable secured debt (mortgages and secured loans) and unsecured debt (credit cards and loans).

     

    This is the very first Personal Insolvency Arrangement to be formally agreed by creditors and is expected to be followed by thousands more going forward.

     

    A Personal Insolvency Arrangement will usually involve the write down of mortgage debt which then makes a debtor’s mortgage payment more affordable and usually includes the write down of unaffordable unsecured debt (credit cards and credit union/bank loans).

     

    It was reported that a large chunk of the couple’s debt will be written off at the end of the six year arrangement and that the couple started to struggle when their income collapsed due to the downturn and they were seeking a deal on debts up to €600,000. The majority of the seven creditors agreed to the proposal put forward by their Personal Insolvency Practitioner.

    The couple will make affordable payments towards the arrangement every month for 6 years as agreed until it’s completed.

     

    Ireland is the only country at the moment that has a debt settlement solution like this that includes the write down of mortgage debts and unsecured debts together.

     

    A Personal Insolvency Practitioner negotiated this debt settlement deal for the couple and their Personal Insolvency Practitioner will be managing their Personal Insolvency Arrangement for them until it has finishes in 6 years. A Personal Insolvency Arrangement can only be proposed by a Personal Insolvency Practitioner.

     

    It’s brilliant to see that the Personal Insolvency Act is working well and that families/couples burdened with unmanageable mortgage debt and unsecured debt have a solution to their debt problems.

     

    This formal arrangement will give them peace of mind and will also write off unmanageable debt and reduce their mortgage and credit card/loan payments to affordable amounts.

     

    At long last we now have legislation in place where creditors are formally agreeing to write off unaffordable debt and debtors are getting formal arrangements in place with the help of a Personal Insolvency Practitioner.

     

    These personal insolvency arrangements give the indebted person affordable monthly payments and protects them from legal action.

     

    There is lots of help available for anyone struggling with debt in Ireland. The Personal Insolvency Act 2012 which was passed into law in Ireland at the end of 2012 introduced new debt write off solutions to help anyone struggling with unmanageable debt.

     

    If you are struggling to pay your credit card debt, loans or mortgage then contact us today on 01 4434125 and find out for free if you qualify for up to 70% debt write off.

     

    R.McGonnell 12th July 2016

     

     

     

     

  4. Ireland’s First Debt Settlement Arrangement Agreed

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    Ireland’s First Debt Settlement Arrangement Agreed

    The very first debt settlement arrangement was approved by creditors in Dublin on the 23rd November 2013.

     

    A debt settlement arrangement is a formal agreement which helps an insolvent person deal with unaffordable debt. Under this type of arrangement a percentage of the debt is paid for 5 years and the remaining debt is written off.

     

    In some cases up to 70% of the debt can be written off and unsecured debts (credit card, loans or catalogues) are included in a debt settlement arrangement.

     

    It was reported that the first debt settlement arrangement involved a 70% write down of debt and the debtor who was based in Donegal had unsecured debt of six figures and was unable to pay the debt when their business failed. It is understood three of Ireland’s main banks were among six creditors involved and that the collapse of the business left the individual with a residual debt they could not pay.

     

    A debt settlement arrangement is one of the three new debt solutions introduced under the Personal Insolvency Act 2012. It is designed for individuals who have no prospect of paying off all their unsecured debts in the next five years.

     

    This debt settlement arrangement will see 30% of the debt paid off over the next five years and the rest of the debt believed to be 70% will be written off.

     

    A Personal Insolvency Practitioner secured the deal for the debtor. The Personal Insolvency Practitioner worked on behalf of the debtor for a few months to try and agree the right deal for the debtor and negotiated a debt write down deal of 70%.

     

    The Personal Insolvency Practitioner applied for a protective certificate while negotiating with the creditors as this gives the debtor 70 days protection from legal action.

     

    Under the new Personal Insolvency Act, when the protective certificate is issued the Personal Insolvency Practitioner has up to 70 days to work out a deal on behalf of the debtor.

     

    This debt settlement arrangement was agreed a month after the protective certificate was issued by Monaghan District Court.

     

    The debt settlement arrangement agreed does not involve mortgage debt. If the debtor was struggling with mortgage debt also then they could have applied for a Personal Insolvency Arrangement instead with the help of the Personal Insolvency Practitioner.

     

    A Personal Insolvency Arrangement is a formal arrangement which helps an insolvent person deal with unaffordable secured and unsecured debt.  Under this type of arrangement a percentage of the debt is paid for usually 6-7 years and the remaining debt is written off. In some cases up to 70% of the debt can be written off and secured debt (mortgages, secured loans) and unsecured debts (credit card, loans or catalogues) can be included in a Personal Insolvency Arrangement.

     

    The 23rd of November 2013 marks a very important day in Irish history as this land mark case shows anyone burdened with unaffordable debt that there are now solutions available to help you deal with debt and unaffordable debt can be written off.

     

    These new debt settlement solutions reduce debt repayments to affordable amounts/writes off debt that cannot you afford to pay and creditors are agreeing to these arrangements with the help of a Personal Insolvency Practitioner.

     

    If you are struggling to pay your credit card debt, loans or mortgage then contact us today on 01 4434125 and find out for free if you qualify for up to 70% debt write off.

     

    R.McGonnell 11th July 2016

     

     

  5. 25% Increase In Debt Write Off Solutions

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    25% Increase In Debt Write Off Solutions

    Increase in debt write off solutions reported by The Insolvency Service of Ireland.

     

    The report released by the Insolvency Service of Ireland for the first quarter of 2016 shows an increase of 26% in the application for Personal Insolvency Arrangements and a continued growth in approved arrangements.

     

    The total debt involved in the new cases created in the first quarter is approximately €303 million.

     

    411 debt write off arrangements were put in place in the first quarter of 2016 and here is the breakdown:

    169 Personal Insolvency Arrangements

    60 Debt Settlement Arrangements

    71 Debt Relief Notices

    111 Bankruptcies

     

    Compared to the first quarter of 2015 the figures above show a 25% increase approximately in Personal Insolvency Arrangements, Debt Settlement Arrangements and Debt Relief Notices.

     

    In the first quarter of 2016, 67% of Personal Insolvency Arrangements and 78% of Debt Settlement Arrangements were approved by creditors.

     

    The number of people going Bankrupt is lower than the last quarter, it maybe the case that more people are opting for the other insolvency solutions instead.

     

    Also the introduction of a Court Review option for Personal Insolvency Arrangement proposals that are rejected by creditors should hopefully show an increase Personal Insolvency Arrangements going forward. A Personal Insolvency Practitioner can now make an application to Court on the debtor’s behalf if a creditor rejects their Personal Insolvency Arrangement. A Court may impose a rejected Personal Insolvency Arrangement proposal on creditors.

     

    Key statistics since the Insolvency Service of Ireland opened:

     

    They have helped deal with debt of almost €5 billion and helped over 3000 people working alongside Personal Insolvency Practitioners, MABS companies and the Irish Mortgage Holders Association.

     

    The following debt write off solutions have been put in place since the Insolvency Service of Ireland opened their doors:

    1,009 Personal Insolvency Arrangements

    379 Debt Settlement Arrangements

    669 Debt Relief Notices

    1,096 Bankruptcies

     

    Here is more information on the debt write off solutions mentioned above, you maybe be eligible for one of these solutions below if you are struggling with unmanageable debt.

     

    Personal Insolvency Arrangement

    Formal agreement that includes secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. This debt solution was brought in by the Government to help people deal with unaffordable secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts)

     

    Debt Settlement Arrangement
    Formal agreement where a percentage of the debt is paid and the creditors agree to write off any debt outstanding. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years. If you owe more than €20,000 and have unsecured debt such as credit cards, loans and overdrafts and are insolvent then a Debt Settlement Arrangement could be the right solution to help your clear your debts.

     

    Debt Relief Notice 

    Formal agreement that gives debt relief to people who have little or no disposable income or assets which they could use to repay what they owe. This is a debt settlement solution to clear less than €35,000 of debt. It enables eligible insolvent debtors to write off their debts where they can prove they are not in a position to repay their debt and it is unlikely their financial situation will improve in the next 3 years.

     

    Bankruptcy 

    A high court process to clear all your debts if you have little or no money available to repay your creditors. Before you consider applying for bankruptcy you must have explored the alternative solutions to bankruptcy which includes a Debt Settlement Arrangement, Personal Insolvency Arrangement and Debt Relief Notice. Unsecured and secured debt such as mortgages for family homes or buy to let properties, business loans and credit card loans can be included in bankruptcy.

     

    It’s fantastic to see that the Personal Insolvency Act is now working and that lots of people who were burdened with debt are now finally getting the help that they need and can now see a light at the end of the tunnel.

     

    If you are finding it difficult to make the repayments to your loans, credit card debt or mortgage then you should speak to a trained Debt Advisor or Personal Insolvency Practitioner today.

     

    If you would like Free Debt Advice then let us arrange a FREE appointment for you with a Debt Advisor or Personal Insolvency Practitioner who will be happy to see if you are eligible to have your debts written off.  



    R.McGonnell 5th July 2016