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Debtor has €223,000 written off his mortgage with help of Personal Insolvency Practitioner

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Debtor has €223,000 written off his mortgage with help of Personal Insolvency Practitioner

It was reported on the 6th of August 2014 that a married Clare man had €223,000 written off his mortgage with the help of his Personal Insolvency Practitioner (PIP).

 

According to the news the 59 year old stonemason secured a €223,000 write down on his family home mortgage as part of a Personal Insolvency Arrangement. The man’s mortgage payment has been reduced down to a manageable amount and will be paid for 10 years and three months, this coincides with the debtor’s 70th birthday and he will keep the family home.

 

The write down by KBC Bank was approved by a Judge at Ennis Circuit Court who said the debt burden was the largest he had come across.  The man’s business collapsed last year. Due to his low income he was unable to engage in a long term payment plan. Instead, he would pay a dividend to unsecured creditors by selling unencumbered property.

 

His Personal Insolvency Practitioner (PIP) negotiated the deal with the creditors on his behalf who all voted in favour of the Personal Insolvency Arrangement at a creditor meeting.  With the help of his Personal Insolvency Practitioner the man’s mortgage is now affordable and the bank who is owed the mortgage debt to will more than likely receive more than if they forced a repossession of the property.

 

The Personal Insolvency Arrangement had the backing of 100% of the secured and unsecured creditors. The man’s main lenders will understand that this is the best they can hope to achieve under the circumstances.

 

A Personal Insolvency Arrangement is one of the debt settlement solutions introduced with the Personal Insolvency Act 2012. It’s a formal arrangement 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 (mortgages and secured loans) and unsecured debt (credit cards, loans and overdrafts).

 

This shows another great example of how the Personal Insolvency Act is working really well for debtors struggling with unmanageable debt. In the past the only options for this man would have been bankruptcy or to surrender his home and he still would be stuck with a high level of unsecured debt to pay when the property would probably be sold at auction at a low price.

 

If you are struggling to pay to your 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 26th September 2016

 

 

 

 

 

 

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