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First Insolvency case in country gives Donegal man 70% debt write off

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Insolvency Practitioners Ireland

It was reported in November 2013 that the first approved Debt Settlement Arrangement has resulted in a Donegal man getting a huge chunk of his debt written off. It is the first debt write off deal in the country to be finalised by creditors. It was registered with the Insolvency Service of Ireland and has been approved by the court.

 

His Personal Insolvency Practitioner (PIP) helped him secure this deal. The man in his 40’s contacted a Personal Insolvency Practitioner looking for some debt advice after his business failed. He met with his Personal Insolvency Practitioner and received free debt advice, his Personal Insolvency Practitioner sat down with him and went through all his debts, income and expenditure and advised him that a Debt Settlement Arrangement would be the best option to clear his debts.

 

A Debt Settlement Arrangement is a new debt settlement solution introduced by the Personal Insolvency Act 2012. It is a formal arrangement that helps an insolvent person repay a percentage of their debt in affordable monthly repayments, and their creditors agree to write off any outstanding debt once the arrangement has finished.  Unsecured debts (personal loans, store cards, overdrafts and credit cards) can be included in the Debt Settlement Arrangement and there is no limit to the amount of unsecured debt that can be included when entering into a Debt Settlement Arrangement.

 

This solution does not cover the write down of secured debts (mortgages or secured loans).  A Personal Insolvency Arrangement is another new debt settlement solution now available to help an insolvent person struggling to pay secured debts (mortgages or secured loans) and unsecured debts personal loans, store cards, overdrafts and credit cards.

 

A Personal Insolvency Arrangement is very similar to a Debt Settlement Arrangement because it is a formal arrangement that covers secured and unsecured debts and a percentage of the debt is paid and creditors can agree to write off a percentage of the outstanding debt.  A Personal Insolvency Arrangement is a great solution for anyone struggling to pay their mortgage, loans and credit cards due to a change in their circumstances. The main purpose of a Personal Insolvency Arrangement is to allow an insolvent person to regain control their financial situation and allowing them to stay in their family home.

 

It was reported that the Donegal man who’s Debt Settlement Arrangement was approved got 70% of his debt wiped out by his lenders. The debt will be written off at the end of the five year arrangement.

 

It is understood the man started to struggle with debt when the family business failed and it is understood three of the main banks were among the six creditors involved.

 

The Personal Insolvency Practitioner (PIP) that helped the man secured this deal was Mr Ronan Duffy of McCambridge Duffy.

He secured a Protective Certificate in court in Monaghan on October 21. The Protective Certificate prevents creditors from taking any legal action while allowing the Debt Settlement Arrangement to be drafted.

 

According to the latest report released by the Insolvency Service of Ireland thousands of people have had debt written off since 2013 and the following debt write off solutions have been put in place:

1,009 Personal Insolvency Arrangements

379 Debt Settlement Arrangements

669 Debt Relief Notices

1,096 Bankruptcies

 

If you are struggling with debt please don’t suffer alone, 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.  

 

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

 

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R.McGonnell 10th October 2016

 

 

 

 

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