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  1. Top tips to avoid getting into debt this Christmas

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    Top tips to avoid getting into debt this Christmas

    Christmas is a wonderful time of celebration and goodwill but too many people overspend this time of year. Some people put the cost of Christmas on their credit cards, this is a really bad idea as you will have a large credit card bill hitting the door mat in January and will also have to pay high interest back on the money you borrowed.

    Don’t suffer with a financial hangover in January due to overspending at Christmas. January is a long enough month without adding that extra stress of worrying about debt. The best way to get ready for Christmas is to budget for it and start putting away some money at the start of the year.

    I have heard of someone putting off priority payments like their rent or mortgage until January, this is crazy and can lead to many more problems in January.

    Other people use moneylenders that call to their door to pay for Christmas and the problem with this is then the following year you will have to pay the money back with very high interest payments of up to 500%!  Avoid high interest money lenders at all costs. The temptation to take advantage of borrowing to meet the needs and wants of your children this Christmas can be intense but it’s not worth it as you could have a lot of added stress and worry the following year due to this debt.

    The best thing is not to borrow money to pay for Christmas instead try and follow these tips to manage your Christmas spending:  

    Sit down and write out a budget of your household income and outgoings to see how much you can afford to spend this Christmas. Don’t overspend try to stick to this budget. Ask your kids to choose what they want from Santa Claus early.

    Talk to your family about Secret Santa, if you have a large family this can save you all a lot of money. I did this last year and it worked really well, all the adults were included in Secret Santa and the children still received presents as normal.

    Make a list of the people you intend to buy gifts for and if possible get creative and make the presents if you can. Get the kids involved too.

    Homemade hampers are a great idea, buy the contents of the hamper yourself and buy a nice box to put it in, This could save you money and a lot of thought will go into the present also. Remember good friends don’t need expensive gifts. Set a limit with family and friends on what each will spend on the other.

    Leave your credit card at home, pay with cash. Paying by credit card doesn’t feel real and handing over cash will hopefully make you stick to your budget.

    Give yourself time to shop around for the best bargains, even buy the January before if you can as there are great deals to be had in the January sales.

    Set aside the money for bills expected in January. This will give you peace of mind as you know you will have the money available to pay the bills in January.

    When you go to the supermarket be realistic, don’t buy way too much food and drink, people shop like they are never going to get to the shops again, the shops will open again the day or two after Christmas.

    Christmas is a wonderful time of year and should be about having a great time with your family. Don’t get caught up in all the overspending.

    Have a lovely Christmas and I hope these tips help you deal with the expense of Christmas.

    If you are struggling with debt from last Christmas or struggling to pay your mortgage or credit cards, loans please give us a call on 01 4434125 as we can arrange a Free appointment with a Debt Advisor or Personal Insolvency Practitioner who will offer you Free Debt Advice.

    R.McGonnell 13th November 2018

  2. Make 2017 The Year You Become Debt Free!

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    Make 2017 The Year You Become Debt Free!

    write off debt in ireland

    Happy New Year Everyone, It’s that time of year again where everyone has made their New Year’s resolutions. The gym is full, everyone you know is on a diet and off the drink, if you have been struggling with debt for a long time and keep ignoring the signs you need help then it’s time to deal with the debt problem head on and make the necessary changes to become debt free this year.

     

    Below are a few pointers that could shift that stubborn debt.

     

    Sit down and get all your paperwork together, work out how much you actually owe to all your of credit cards, loans and catalogues. Then add up all of your monthly debt repayments and this total will show you how much you pay out every month on your debts. You maybe be surprised at the total amount of debt you owe and the amount you are paying on your monthly debt repayments but you need to see this total so you can take stock of your current situation as this will encourage you to make that call to ask for help.

     

    Then write down your total monthly household income (net wage, benefits, etc) on the top of a page and put down all of your monthly outgoings (mortgage repayment, food, electricity, travel costs, insurances, etc) underneath and then add up all of your outgoings.

    Subtract your total monthly outgoings from your total monthly household income, if you are left with a monthly figure that is less than your total monthly debt repayment please make sure you give us a call as you maybe be eligible to have your loans, credit cards and mortgage payments reduced to a more manageable amount. Also you maybe eligible to have some or all of your debt written off under the new debt solutions introduced through the Personal insolvency Act.

     

    Here is an example of someone that was helped by one of the Personal Insolvency Practitioners we work with.

     

    case-graph21.png

     

    (This is an example of how a Debt Settlement Arrangement can help someone who is insolvent, the monthly payment and the amount of debt written off in each debt settlement arrangement varies for every insolvent person/family as everyone’s circumstances are different, this case study is just an example and will give you an idea of how a debt settlement arrangement can help someone struggling with unmanageable debt)

     

    Most people start to struggle with debt when they experience a change in their circumstances.  A relationship breakdown, business failure or being made redundant are just a few reasons why we receive a call from someone worried about debt.

     

    If your are struggling with debt every month then it’s time to get help and deal with the unmanageable debt head on.

     

    Insolvent people finally have a range of difference solutions available to them which tackle the debt problem and will write of unaffordable debt.

     

    There are now lots of solutions available to reduce your monthly mortgage, loan and credit card payments.

     

    Here are the solutions now available and lots of people have already benefited from these new debt solutions:

     

    Debt Settlement Arrangement
    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).

      
    Personal Insolvency Arrangement
    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 and unsecured debt, a Personal Insolvency Arrangement may be the right solution for you. This debt solution was brought in by the Government to deal with secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts)
     

    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. 

     
    Bankruptcy 
    A high court process for someone struggling with more than €20,000 of debt. Bankruptcy is a solution 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. 

     

    Please don’t bury your head in the sand as there are now lots of solutions available that can reduce your monthly repayments, write off unaffordable debt and stop all those nasty calls and letters.

     

    Some clients have told me in the past that making the first call was so difficult for them as they were worried about what we would think of them, but then after they spoke with us they were so happy that they did make that call as they can now see a light at the end of the tunnel and a huge weight has been lifted off their shoulders.

     

    Some of the solutions now available enable you have up to 70% of your debt written off which will also reduce your monthly debt repayments.

     

    If you need help with debt then I can 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.

    Rory McGonnell

    Founder of Bright Day Finance

    Personal finance expert and blogger who has an interest in money saving ideas.

     

     

     

  3. 899 New Applications for Debt Write Off Deals for 3rd Quarter of 2016

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    899 New Applications for Debt Write Off Deals for 3rd Quarter of 2016

    The Insolvency Service of Ireland (ISI) released the debt help and advice statistics for the 3rd quarter of 2016 today.

     

    The Insolvency Service of Ireland (ISI) is an independent government body which was set up in March 2013 to help indebted Irish people become debt free. With the help of Personal Insolvency Practitioners and approved Intermediaries like MABS so far the ISI has helped 4000 Irish people become debt free.

     

    The report released today by the Insolvency Service of Ireland shows a continued growth in new applications for debt write off solutions, protective certificates and approved arrangements at similar levels to last quarter. When compared to the same period last year, there is significant growth in all these categories.

     

    Key statistics from the 3rd Quarter include:

     

     

    899 New applications for debt write off solutions.

     

    703 of the new applications were for Personal Insolvency Arrangements (this debt solution is designed to return a person to solvency while keeping them in their home).

     

    417 Protective Certificates were issued (A Protective Certificate prevents creditors from taking any legal action while allowing a Debt Settlement Arrangement or Personal Insolvency Arrangement to be drafted and proposed).

     

    337 Debt Write Off arrangements were approved

     

    61 Bankruptcy cases approved

     

    334 Debt Write Off arrangements were approved in the 2nd quarter of 2016, 4 more Debt Write Off arrangements were approved in the 3rd quarter of 2016.

     

    This is breakdown of the different debt solutions approved in the 3rd quarter:

    100 Debt Relief Notices

    57 Debt Settlement Arrangements

    180 Personal Insolvency Arrangements

     

    The Personal Insolvency Act 2012 introduced these new debt settlement solutions to help people in Ireland become debt free.

     

    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 cards, 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 fantastic to see that anyone burdened with unaffordable debt has lots of different solutions now available to them.

     

    These debt settlement solutions now available could make your loan, credit card and mortgage payments more affordable if you are unable to pay your debts as they fall due. You may be eligible to have some or all of your written off also.

     

    There are now also 136 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 anyone struggling to pay their debts to see if they are eligible for a Debt Settlement Arrangement or a Personal Insolvency Arrangement then their Personal Insolvency Practitioner (PIP) will negotiate the debt settlement deal on behalf of the indebted person if they are eligible for one of these debt settlement solutions

     

    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.

     

    R.McGonnell 17th October 2016

     

     

     

     

  4. 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.  



    R.McGonnell 10th October 2016

     

     

     

     

  5. You don’t have to struggle with debt on your own, there is help available

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    You don’t have to struggle with debt on your own, there is help available

    Debt problems can cause an awful amount of stress, sleepless nights, arguments with partners, depression and even suicidal thoughts.

     

    A survey conducted this year that explored the impact debt has on a person’s mental health stated that lots of people who were struggling with mortgage arrears contemplated suicide or turning to alcohol.

     

    According to the news The Irish Mortgage Holders Organisation and clinical psychologist Dr Eddie Murphy conducted the survey and questioned 488 people aged 29-70 years who are in debt.

     

    The survey found that:

    44% of respondents said they felt depressed either all of the time or most of the time

    31% have had suicidal thoughts in the last four weeks

    22% had active plans to kill themselves

    45% of people indicated harmful levels of alcohol use

     

    The results of this survey are very sad to see, its terrible that people are still suffering to this extent due to debt problems, we now have lots of solutions available to help any indebted person clear some or all of their debt.

     

    There is always a solution to a debt problem and anyone struggling with debt needs to ask for help straight away. Free debt advice is available from lots of organisations and we can also arrange a Free appointment with a Debt Advisor or Personal Insolvency Practitioner who will be able to give Free Debt Advice to anyone worried about debt in Ireland.

     

    If you know anyone struggling with debt please make sure they speak to a Debt Advisor or Personal Insolvency Practitioner as they can get the help they need with one phone call.

     

    No one should be ashamed of being in debt as there are so many people who have struggled with debt at some stage of their life, the most important thing to do is to get help, don’t ignore the problem as it will just get worse.

     

    One lady who contacted us this year now has a debt settlement solution in place which gives her affordable monthly payments. She was struggling with lots of debts and a high mortgage payment due to a relationship breakdown.

     

    We arranged a Free appointment for her with a Personal Insolvency Practitioner and now she has had some of her credit card debt written off and part of her mortgage which was affordable has been write down also.

     

    Her Personal Insolvency Practitioner held her hand through the whole process and deals with all her creditors for her at the moment and she is not worried about debt anymore and a huge weight has been lifted from her shoulders. This is one example of how a quick chat with a Debt Advisor or Personal Insolvency Practitioner can solve a debt problem.

     

    It was reported in the news this year also that Irish households are the fourth most indebted in European Union and the average amount of household debt per person in Ireland is now €31,216. These households need to make sure they ask for help if they start to struggle paying this debt back.

     

    We have lots of debt solutions available to help clear different type of debts and lots of insolvent people are getting their debt written off now which is brilliant to see.

     

    If you are struggling with debt and are receiving lots of calls and threatening letters from your credit card or loans companies then please don’t ignore the situation, give us a quick call on 01 4434125 or request a free call back through our website and you will receive Free Debt Advice today!

     

    R.McGonnell 26th September 2016

     

     

     

     

     

  6. 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

     

     

     

     

     

     

  7. Personal Insolvency Practitioner helps Teacher beat her mortgage lender

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    Personal Insolvency Practitioner helps Teacher beat her mortgage lender

    According to the news on the 27th of July 2016 a single mother with 2 children won her case against her mortgage lender at the Personal Insolvency Court in Ennis.

     

    It was report that her mortgage lender had opposed a deal put forward by her Personal Insolvency Practitioner a few months prior and that the lender may evict her from her home as she was struggling to pay her mortgage payments.

     

    Judge Patrick Meaghan approved a Personal Insolvency Arrangement that allows the Limerick school teacher to stay in her family home with her sons, aged eight and five, and she will also receive a €113,000 write down on her €309,000 mortgage.

     

    This debtor achieved a victory at the Personal Insolvency Court with the help of her Personal Insolvency Practitioner and his legal team. This court case is a result of measures introduced by the Government last year that let debtors seek an independent court review of lenders vetoing Personal Insolvency deals. This important change made to the Personal Insolvency Act last year allows a debtor an independent court review if their Personal Insolvency Arrangement has been declined by their lender.

     

    The mortgage lender in this case objected to the Personal Insolvency Arrangement (PIA) put forward by the teacher’s Personal Insolvency Practitioner, Maurice Lenihan at a creditor meeting.

     

    A Personal Insolvency Arrangement (PIA) is a debt settlement deal 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, overdrafts, credit cards or loans.

     

    With the help of her Personal Insolvency Practitioner she decided to appeal the decision made by her mortgage lender, after taking her case to court her mortgage lender decided to withdrawn its opposition to the appeal and this allowed the Judge to approve the write-down of debt.

     

    It’s great to see that debtors are now beating the banks, this debtor has had a deal approved that will allow her to stay in the family home with her two kids and her mortgage payment and other debts if any, will be affordable as they will be reduced down to a manageable amount.

     

    The Personal Insolvency Practitioners we work with have already helped hundreds of people secured debt write off deals like this over the last few years and will continue to help thousands more due to this independent court review for declined deals.

     

    When an insolvency deal is agreed, unmanageable debt is written off and the monthly debt repayments are also reduced down for the debtor, sometimes up to 70% of the debt can be written off.

     

    There is also a light at the end of the tunnel as a Personal Insolvency Arrangement lasts for normally 6 – 7 years and a Debt Settlement Arrangement lasts for 5 – 6 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. It’s an agreed settlement of your unsecured debts with affordable payments over a period of 5 – 6 years, this solution does not include the write down of mortgage debt. If you have unsecured debt such loans, credit cards and overdrafts and are insolvent then a Debt Settlement Arrangement could be the right solution to help your clear your debts.

     

    People who contact us have experienced a change in their circumstances and this is reason why they are struggling to pay their debts every month. We can arrange a free appointment with a Debt Advisor or Personal Insolvency Practitioner for anyone struggling with debt.  The Debt Advisors and Personal Insolvency Practitioners we work offer Free Debt Advice and have helped thousands of people over the years. They give practical honest advice and will be able to see if you are eligible for a debt solution to write off some or all of your debt.

     

    If you would like to receive Free Debt Advice please ccomplete our call back form to receive a call today!

     

     

    R.McGonnell 19th September 2017

     

     

     

  8. 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

     

     

     

     

  9. 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

     

     

     

     

     

  10. 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

     

     

     

     

     

  11. 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

     

     

     

     

  12. 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

  13. Almost 1700 Debt Solutions Agreed in 2015

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    Almost 1700 Debt Solutions Agreed in 2015

    According to the Insolvency Service of Ireland statistics for 2015 there was a 70% increase in debt solutions agreed for that year.  The report also shows that 1687 people had debt settlement solutions agreed in 2015.

     

    These solutions usually involve the write down of credit cards, loans and mortgages where a person is unable to pay their debts as they fall due.

     

    There are four debt solutions now available to help anyone struggling with debt:

     

    A Debt Settlement Arrangement is a solution for unsecured debts, such as credit cards, bank/credit union loans and overdrafts. This solution features write-down and write-off of debts that cannot be repaid. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

     

    A Personal Insolvency Arrangement is a similar solution to the Debt Settlement Arrangement but it also includes mortgage debt and secured loans and, where possible, allows a debtor to keep their home. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

     

    A Debt Relief Notice is a solution for people with low income, no mortgage and very few assets. This solution allows for complete write off of debts up to €35,000 and can be applied for through an approved Intermediary, your local MABS office maybe an approved Intermediary.

     

    Bankruptcy is a solution for people for which the alternatives above are not suitable. The bankruptcy term has been reduced from 3 years to 1 year.

     

    Key statistics for 2015 include the following:

    Personal Insolvency Arrangements (PIAs) continue to be the most popular solution and the applications for debt solutions increased by 18% in the 3rd quarter.

     

    There was almost 1700 permanent debt settlement solutions agreed for debtors and here is the breakdown:

     

    641 Personal Insolvency Arrangements

    221 Debt Settlement Arrangements

    346 Debt Relief Notices

    479 Bankruptcies

     

    The Insolvency Service of Ireland was set up to help tackle debt problems in Ireland and since the introduction of the new debt solutions and the reform of bankruptcy more formal arrangements are being reached by borrowers and their lenders with the help of a Personal Insolvency Practitioner.

     

    All of these debt solutions are overseen by the Insolvency Service of Ireland and they became available when the Personal Insolvency legislation changed at the end of 2012. These solutions are designed to help any insolvent people struggling with unmanageable debt and these solutions will help them get back on track financially.

     

    The report by the Insolvency Service of Ireland also reveal that 3 out of 4 insolvency proposals put to creditors by Personal Insolvency Practitioner’s are being accepted and recent amendments to legislation mean that where creditors have rejected a proposed Personal Insolvency Arrangement, the borrower can seek a review of this decision by the Court.

     

    The Insolvency Service of Ireland also put a new initiative put in place last year to encourage greater engagement between creditors and Personal Insolvency Practitioners (PIP).  A PIP can now apply for a €750 payment from the Insolvency Service of Ireland for any insolvency arrangement that has been rejected by creditors, on condition that the arrangement must have proposed a return to all creditors that was greater than or equal to that which they would receive in bankruptcy. This should help PIP’s with the cost of taking a debtors case to court if a creditor rejects an insolvency arrangement put forward.

     

    Thousands of people in Ireland are insolvent and in deep mortgage arrears. It is very important for people who may be in fear of losing their homes to be aware that even if they have a court appearance date or are received threatening letters they should contact a Debt advisor or Personal Insolvency Practitioner to ask for professional help.

     

    As we can see from the figures released by the Insolvency Service of Ireland things are starting to move in the right direction and lots of people in debt are now getting the long awaited help they need.

     

    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.

     

    If you would like Free Debt Advice then 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.  

     

    R.McGonnell 14th July 2016

     

     

     

     

     

     

  14. 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

     

     

     

     

  15. Ireland’s First Debt Settlement Arrangement Agreed

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    Ireland’s First Debt Settlement Arrangement Agreed

    The very first debt settlement arrangement was approved by creditors in Dublin on the 23rd November 2013.

     

    A debt settlement arrangement is a formal agreement which helps an insolvent person deal with unaffordable debt. Under this type of arrangement a percentage of the debt is paid for 5 years and the remaining debt is written off.

     

    In some cases up to 70% of the debt can be written off and unsecured debts (credit card, loans or catalogues) are included in a debt settlement arrangement.

     

    It was reported that the first debt settlement arrangement involved a 70% write down of debt and the debtor who was based in Donegal had unsecured debt of six figures and was unable to pay the debt when their business failed. It is understood three of Ireland’s main banks were among six creditors involved and that the collapse of the business left the individual with a residual debt they could not pay.

     

    A debt settlement arrangement is one of the three new debt solutions introduced under the Personal Insolvency Act 2012. It is designed for individuals who have no prospect of paying off all their unsecured debts in the next five years.

     

    This debt settlement arrangement will see 30% of the debt paid off over the next five years and the rest of the debt believed to be 70% will be written off.

     

    A Personal Insolvency Practitioner secured the deal for the debtor. The Personal Insolvency Practitioner worked on behalf of the debtor for a few months to try and agree the right deal for the debtor and negotiated a debt write down deal of 70%.

     

    The Personal Insolvency Practitioner applied for a protective certificate while negotiating with the creditors as this gives the debtor 70 days protection from legal action.

     

    Under the new Personal Insolvency Act, when the protective certificate is issued the Personal Insolvency Practitioner has up to 70 days to work out a deal on behalf of the debtor.

     

    This debt settlement arrangement was agreed a month after the protective certificate was issued by Monaghan District Court.

     

    The debt settlement arrangement agreed does not involve mortgage debt. If the debtor was struggling with mortgage debt also then they could have applied for a Personal Insolvency Arrangement instead with the help of the Personal Insolvency Practitioner.

     

    A Personal Insolvency Arrangement is a formal arrangement which helps an insolvent person deal with unaffordable secured and unsecured debt.  Under this type of arrangement a percentage of the debt is paid for usually 6-7 years and the remaining debt is written off. In some cases up to 70% of the debt can be written off and secured debt (mortgages, secured loans) and unsecured debts (credit card, loans or catalogues) can be included in a Personal Insolvency Arrangement.

     

    The 23rd of November 2013 marks a very important day in Irish history as this land mark case shows anyone burdened with unaffordable debt that there are now solutions available to help you deal with debt and unaffordable debt can be written off.

     

    These new debt settlement solutions reduce debt repayments to affordable amounts/writes off debt that cannot you afford to pay and creditors are agreeing to these arrangements with the help of a Personal Insolvency Practitioner.

     

    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 11th July 2016