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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

 

 

 

 

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