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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

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