Focus On: Personal Insolvency Options
30 July 2021
As reported in the Irish Independent on 28 July 2021, a businesswoman who became insolvent following the collapse of the construction sector in the mid-2000s has had the vast majority of her €14.3m debt written off under a personal insolvency arrangement (PIA).
The businesswoman owed €11.6m to Nama on foot of personal guarantees and owed €2.7m in mortgage debt to Pepper Finance.
However, under a Personal Insolvency Arrangement (PIA) approved by the High Court, the bulk of this will be written off and she will be able to save her €950,000 family home in Malahide, Co. Dublin, which is in negative equity.
A Personal Insolvency Arrangement (PIA) is one of 3 debt resolution mechanisms in the Republic of Ireland introduced by the Personal Insolvency Act 2012 for people who cannot afford to pay their personal debts. These mechanisms offer different solutions to people in different situations.
In Northern Ireland, there are also various options open to debtors who are facing financial difficulty including direct settlements, debt consolidation or management plans, debt relief orders, individual voluntary arrangements and self-adjudication in bankruptcy. In England and Wales, debtors may also have the option to apply for an administration order and temporary protection under the Breathing Space (Debt Respite Scheme).
If you are concerned about your financial position, debts or future financial prospects now is the time to take the initiative and obtain expert advice. Please contact our Insolvency team to discuss your needs.