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Archive: Aug 2016

  1. Court Review For Rejected Personal Insolvency Arrangements Introduced

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    Court Review For Rejected Personal Insolvency Arrangements Introduced

    For many borrowers struggling with mortgage debt, the introduction of a Personal Insolvency Arrangement (PIA) was welcomed as a solution to help them deal with the burden of unsustainable debt.

     

    A Personal Insolvency Arrangement is a formal agreement that covers secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. However in reality, many borrowers saw their Personal Insolvency Arrangement proposals being turned down by their mortgage lenders because it wasn’t seen as being in the bank’s best interest.

     

    Personal Insolvency Practitioners spent a lot of time with the borrower putting together their proposal for a solution to the borrower’s debt problems, mortgage lenders would turn them down flat, even after other lenders had accepted their proposals.

     

    What many people still don’t know is that at the end of last year, the minister for Justice, Frances Fitzgerald announced that if a Personal Insolvency Arrangement proposal is declined, the borrower can ask for it to be reviewed by the courts. If the reason for turning it down is found to be unfair, the courts could force the proposal onto lenders. This has been warmly welcomed by the public as the government appears to be standing up for borrowers who have been at the mercy of Banks and other lenders to accept their Personal Insolvency Arrangement proposals.

     

    This new ruling isn’t a green light for all declined Personal Insolvency Arrangements being approved as the courts will look at the likelihood that the borrower can make the proposed repayments and the interests of all parties. As the courts are independent, we should see more balanced and informed decisions being made.  This should hopefully lead to more declined Personal Insolvency Arrangement proposals being overturned and being accepted in the future.

     

    Minister Fitzgerald went as far as to describe the order as “a very significant milestone in the development of Ireland’s insolvency regime”.

     

    As well as Personal Insolvency Arrangements now becoming more attractive, they complement a growing list of debt solutions available to borrowers experiencing financial difficulties. These include Debt Relief Notices, Debt Settlement Arrangements, and of course, Bankruptcy.

     

    Here is more information on the debt write off solutions now available, you maybe be eligible for one of these solutions below if you are unable to pay your debts as they fall due:

     

    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 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.

     

    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.

     

    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 anyone burdened with unaffordable debt has lots of different solutions now available to them.

     

    We now have debt solutions available that will reduce your monthly payments on your credit cards, loans or mortgage and will write off debt you can’t afford to pay.

     

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

     

    Click on the arrange a call back button below or phone us on 01 4434125 to receive Free Debt Advice Today. 

     

    arrange call back

     

    R.McGonnell 31st August 2016

     

     

     

     

  2. Almost 800 People Discharged From Bankruptcy

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    Almost 800 People Discharged From Bankruptcy

    793 people were discharged from bankruptcy in Ireland on the 29th of July 2016. These people are the very first group to qualify for a faster discharge from bankruptcy under the changes made to the bankruptcy laws last year.

     

    According to the news the Insolvency Service of Ireland welcomed the fact that almost 800 people would be released from bankruptcy under the new one year term which applied to anyone made bankrupt since 29th of July 2015. The 793 bankrupts will be able to start again from today “without the burden of unsustainable debt”, commented Lorcan O’Connor the Director of the Insolvency Service of Ireland.

     

    Ireland’s bankruptcy laws have been radically overhauled in less than three years. Up to 2013, it took people 12 years to qualify for a discharge from bankruptcy which was a like a life sentence.

     

    The Insolvency laws in Ireland were very old fashioned compared to other countries in the EU. The 12 year rule was one of the longest restrictions in the EU so the new changes to the bankruptcy legislation were badly needed. The Bankruptcy term was cut to three years from 12 years in 2013 but the three year term was quickly criticised as being restrictive before it was changed last year.

     

    The UK has had the 1 year bankruptcy term in place since April 2004 and lots of Irish people were heading to the north and the UK to live there for a few years to avail of this 1 year bankruptcy term.

     

    It’s great to see that Irish people can have the same fresh start as other people struggling with debt in other countries and now they don’t have to leave Ireland to get the debt help they need.

     

    The Personal Insolvency Act 2012 has made major changes to how Irish people will be able to move on from debt. Before if you were in debt you didn’t have many options at all and being in debt could last for 12 years or longer.

     

    We now have debt solutions available that will reduce your monthly payments on your credit cards, loans or mortgage and will write off debt you can’t afford to pay if you are insolvent (unable to pay your debts as they fall due).

     

    Here is more information on the debt write off solutions now available, you maybe be eligible for one of these solutions below if you are unable to pay your debts as they fall due:

     

    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.

     

     

    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.

     

     

    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)

     

     

    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 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.

     

     

    R.McGonnell 29th August 2016

     

     

     

     

     

  3. 30% Increase In New Applications for Debt Write off Deals

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    30% Increase In New Applications for Debt Write off Deals

    The Insolvency Service of Ireland released the debt help statistics for the second quarter of 2016 on 29th of July 2016. The ISI was set up at the end of 2013 to help Irish people deal with personal debt problems.

     

    The report released by the Insolvency Service of Ireland shows a 30% increase in new applications received for debt solutions in the second quarter of 2016.  735 new debt settlement applications were received and the total debt involved in the 735 new cases was approximately €475 million.

     

    334 debt write off deals were approved in the second quarter of 2016, that’s a 10% increase on the number of debt write off deal approved in the previous quarter.

     

    The Insolvency Service of Ireland also mentioned in their report that in 74% of  the debt settlement cases it has dealt with since 2013, there was a successful outcome where the borrower returned to solvency.

     

    Here is the breakdown of the different debt solutions approved in the 2nd quarter:

     

    92 Debt Relief Notices

    66 Debt Settlement Arrangements

    176 Personal Insolvency Arrangements

     

     

    A Debt Relief Notice 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. 

     

    A Debt Settlement Arrangement is a formal agreement where a percentage of the debt is paid and creditors agree to write off any outstanding debt. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years. If you 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. (Insolvent means you are unable to pay your debts in full and when they fall due).

     

    A Personal Insolvency Arrangement is a debt settlement solution that covers secured and unsecured debt, this is the insolvency arrangement for mortgage holders who are seeking a debt solution to help them restructure their mortgages, bank/credit union loans, overdrafts and credit cards. This solution is similar to a Debt Settlement Arrangement, its a formal agreement where a percentage of the debt is paid and creditors agree to write off any outstanding debt.

     

    Debt problems can cause a lot of worry, stress and sleepless nights but thank god there are now solutions available to get you out of debt so you can start over again.

     

    Gone is the time when you need to hide your debt problems and there is no shame attached to being in debt anymore as it can happen to anyone.

     

    Most people who contact us have experienced a change in their circumstances, everything was fine and then out of the blue their hours are cut at work or they are made redundant.

     

    There are lots of reasons why people start to struggle with debt and now there are lots of solutions available. The debt settlement solutions now available could make your credit card, bank loans and mortgage payments more affordable if you are unable to pay your debts as they fall due. You may be eligible to have up to 70% of your debt to be written off also.

     

    The great thing about these new debt settlement solutions is that there is an end date. A Debt Settlement Arrangement will last up to 5 – 6 years and a Personal Insolvency Arrangement could last up 6 – 7 years. These are formal arrangements recognised by the court and the Insolvency Service of Ireland so they will give you legal protection from your creditors.

     

    There are now 136 authorised Personal Insolvency Practitioners in Ireland who can help anyone struggling with unmanageable debt.  A Personal Insolvency Practitioner is a trained debt advice professional who will be able to see if you are eligible for a solution to reduce your payments and have a percentage of your debt written off.

     

    The Personal Insolvency Practitioner will be able to sit down with the person struggling with debt to see if they are eligible for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA). If the indebted person is eligible for a DSA or PIA then their Personal Insolvency Practitioner (PIP) will negotiate the debt settlement deal on their behalf.

     

    The other good news is that there is a new Government scheme aimed at giving free advice to home owners struggling to pay their mortgage.

     

    This new State funded Scheme of Aid and Advice for Borrowers in Home Mortgage Arrears enables borrowers with mortgage arrears to meet a Personal Insolvency Practitioner for free advice.

     

    If you are insolvent and in arrears on your home mortgage you could be eligible for a FREE consultation with a Personal Insolvency Practitioner.  This is available as part of a new State-funded Scheme to help distressed mortgage holders

     

    The Insolvency Service of Ireland said the new scheme should ensure that everyone experiencing financial difficulty should get the help they need.

     

    The Personal Insolvency Practitioners we work with are part of this scheme and can also offer free advice to anyone worried about debt problems.

     

    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.

     

    Click on the arrange a call back button below or phone us on 01 4434125 to receive Free Debt Advice Today. 

     

    arrange call back

     

    R.McGonnell 24th August 2016

     

     

     

     

     

  4. What is a Personal Insolvency Practitioner (PIP)?

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    What is a Personal Insolvency Practitioner (PIP)?

    A Personal Insolvency Practitioner (PIP) is a debt advice specialist who can help anyone who is unable to pay their debts as they fall due. They can help anyone who is struggling to pay their mortgage, credit cards, loans and overdrafts.

     

    A Personal Insolvency Practitioner will need to apply to the Insolvency Service of Ireland for authorisation before they can give advice to anyone struggling with debt.

     

    Personal Insolvency Practitioners are regulated and authorised by the Insolvency Service of Ireland.
    There are some very strict rules in place for anyone who wants to become a PIP and these rules are in place to protect individuals who are burdened with debt.

     

    An individual can only apply to the Insolvency Service of Ireland to become a Personal Insolvency Practitioner if that individual:

     

    Is a Barrister at law.

    Is a qualified Accountant and a member of a prescribed accountancy body.

    Is a Solicitor with a practising certificate.

    Holds a qualification in business, law, finance or other appropriate similar qualification to the satisfaction of the Insolvency Service of Ireland.

    Is a Qualified Financial Advisor who holds a current qualification from the Life Insurance Association of Ireland (LIA), the Insurance Institute or the Institute of Bankers School of Professional Finance.

     

    The individual also needs to demonstrate to the Insolvency Service of Ireland that they have relevant experience and knowledge and will hold a Diploma in Personal Insolvency which ensures he or she has been trained correctly to help anyone struggling to pay their loans, credit cards, overdraft and mortgage.

     

    Personal Insolvency Practitioners were introduced by the Personal Insolvency Act 2012. The Personal Insolvency Act also introduced new debt settlement solutions at this time to help anyone struggling with debt and these are called a Debt Relief Notice, a Debt Settlement Arrangement a Personal Insolvency Arrangement.
    These new debt solutions enable people in Ireland who are struggling with unaffordable debt to have some or all of their debt written off and have their debt repayments reduced to more affordable amounts.

     

    If you want to apply for a Debt Settlement Arrangement or a Personal Insolvency Arrangement then you will need to make an appointment with a Personal Insolvency Practitioner as a proposal for Debt Settlement Arrangement or a Personal Insolvency Arrangement can only be put forward by a Personal Insolvency Practitioner.

     

     

    What does a Personal Insolvency Practitioner do?

     

    A Personal Insolvency Practitioner can check to see if you are eligible to have your debt written off under one of the new insolvency solutions.

     

    Personal Insolvency Practitioners understand the stress involved when someone is in debt and they are there to help you find a solution to your debt problems.

     

    If you are eligible for a Debt Settlement Arrangement or a Personal Insolvency Arrangement and you decide to go ahead with one of these solutions then your Personal Insolvency Practitioner will prepare your financial statement with you, this shows your Income and Expenditure and how much you can afford to repay your creditors.

     

    Your Personal Insolvency Practitioner will then submit an application for a (PC) Protective Certificate to the Insolvency Service of Ireland. When a Protective Certificate is issued it offers you and your assets protection from legal proceedings by creditors while your PIP is applying for a Personal Insolvency Arrangement or a Debt Settlement Arrangement.

     

    Then the Personal Insolvency Practitioner can contact all of your creditors and can enter into discussions with each creditor regarding how they wish to be dealt with.

     

    Your PIP can then arrange a creditor meeting and provides each creditor with your final proposal and all relevant documentation. The creditors would vote on the proposal and if no creditor submits an objection within fourteen days, the court can formally approve the Personal Insolvency Arrangement or the Debt Settlement Arrangement.

     

    If the Personal Insolvency Arrangement or a Debt Settlement Arrangement is approved then you will have a formal arrangement in place which will gives you affordable monthly repayments and a percentage of your debt will be written off.

     

    Your arrangement will be managed by your Personal Insolvency Practitioner until it is finishes and your Personal Insolvency Practitioner will be dealing with everything for you for the 5 – 6 years.

     

    On successful completion of the Personal Insolvency Arrangement or the Debt Settlement Arrangement you will be debt free if you have made all the agreed monthly payments to your arrangement.

     

    If you would like Free Debt Advice then let us arrange a FREE appointment for you with a Personal Insolvency Practitioner who will be happy to see if you are eligible to have your debts written off.
    The Personal Insolvency Practitioners we work with offer Free Debt Advice and anything you discuss is kept strictly confidential.

     

    Click on the arrange a call back button below or phone us on 01 4434125 to receive Free Debt Advice Today. 

     

    arrange call back

     

    RMcGonnell 3rd August 2016