21st May 2014
There has been considerable interest in the new Irish personal insolvency system. Two new debt solutions have been introduced for residents of Ireland that are, in many ways, comparable to an IVA in the UK. There is however some key differences as to precisely how these processes work.
The “personal insolvency arrangement” is one of these two new options. Like an IVA, you make proposals to your creditors based upon your monthly disposable income and/or releasing the value of assets that you own. The arrangement will run for an agreed term, at the end of which debts that haven’t been fully repaid will usually cease to exist having been legally written off.
Personal insolvency arrangements do however have a unique feature that is not present with IVAs. Secured debts, such as mortgage debts, can also be included. Serious mortgage arrears and negative equity is a particular feature of debt distress in Ireland. It’s hoped that the PIA will enable people to restructure their mortgage and unsecured debts in a way that will allow them to remain in their homes.
Restructuring the mortgage could include outcomes up to, and including, a portion of the mortgage debts being written off altogether. You may wish to reach more about the debts that can be included in personal insolvency arrangements.
The team that has developed IVA Advice Forum has been involved in creating new websites for residents of Ireland who are considering how best to tackle their debts. The aim has been to produce balanced and authoritative information that visitors can use to make informed financial decisions.
The specialist PIA website resource can be visited at http://www.personal-insolvency-arrangements.ie/. This site covers subjects including the qualification criteria, tackling mortgage arrears, where to go for further advice and the alternative debt solutions that are available.
In common with this website a forum has been integrated into the site. This enables people to ask questions directly to professionals that have been trained in Irish personal insolvency law and processes. Visit the site’s online debt forum at http://www.personal-insolvency-arrangements.ie/forum/forum.asp?FORUM_ID=1
The second new debt solution that’s comparable with an IVA is known as the debt settlement arrangement. This solution has been reviewed in a previous IVA Forum article which you can review here.
At the current time relatively few PIA applications have fully progressed through to acceptance. There has however been much interest and many people have contacted personal insolvency practitioners in Ireland to assess whether the process will work for them.
At the same time there has been a surge in the numbers of people choosing to apply for their own bankruptcy. It would seem that the changes to personal insolvency and bankruptcy rules in Ireland are being met by an increasing wave of public interest in being finally able to tackle serious personal debt problems.