Personal Insolvency Practitioner

A PIP explained

Personal Insolvency Practitioner (PIP)

What is a PIP?

A PIP or Personal Insolvency Practitioner, is a professional who is authorised and regulated by the Insolvency Service of Ireland (The ISI) to help people who are having financial trouble (Insolvent), such as:

  • having difficulty repaying their mortgage.
  • dealing with unaffordable arrears.
  • struggling to repay their debts.

If you are insolvent, a PIP could help in proposing a solution to your creditors, such as a Debt Settlement Arrangement (DSA) or Personal Insolvency Arrangement (PIA); solutions that were created specifically to help people that are are struggling financially. It is not possible to avail of an Insolvency solution without the help of a PIP.

What does a PIP do?

A PIP will assess your situation, then provide advice and guidance on the different legal options available to you, including a DSA, PIA, Debt Relief Notice (DRN), and Bankruptcy. When you have an idea of what solutions you can avail of and how they would work, you can take the time to decide if you would like to proceed. Your PIP will be able to represent you in applying for your chosen solution, or signpost you to an appropriate charity or provider.

The process of Insolvency with a PIP

Initial contact

When you first make an enquiry with an Insolvency company such as our own, one of our Debt Advisors, who is experienced in insolvency matters, will assess you financial situation to determine if you fit the criteria for any of the available Insolvency Solutions. They will provide a brief overview of your options, including why they might or might not be suitable. If you choose to proceed with a solution, such as a DSA or PIA, then we will progress you to the next stage known as the “Initial Meeting”, which is held with out in-house management team and one of our PIPs. Alternatively, if you opt for a DRN, we will provide information on how to apply for this and who to contact. You cannot avail of Bankruptcy without first exploring the other Insolvency solutions available.

The Initial Meeting

During this meeting, we will discuss your financial situation in more detail, including any assets, debts, income, and expenses. We explain the legal guidelines and offer budgeting advice. The PIP also outlines the available options in more detail, including any implications for both you or the creditors, and what a proposed arrangement might look like.

PIP Appointment

After the initial meeting, you can choose to appoint the PIP in writing or decide not to proceed.

Prescribed Financial Statement

With the PIP’s assistance, you will complete a Prescribed Financial Statement (PFS) You will need to send through any requested supporting documents to support your PFS. The PIP makes a statement about the PFS, and a legal declaration is made.

Application to the ISI and the Court

The PIP submits an application for a Protective Certificate (PC) to the ISI, which, if approved, is sent to the court. The PC provides protection from creditors for 70 days.

Engagement with Creditors

The PIP informs the creditors listed on the PC and discusses how each class of creditor wishes to be handled. These discussions will form the basis of your proposal as creditor responses may radically alter the initial course of action intended by the PIP.

Meeting of Creditors

The PIP organises a “Meeting of Creditors” (MOC), where creditors vote on your proposal. You must approve any modifications to the proposal in writing. The PIP reports the outcome to creditors, and if no objections are raised within fourteen days, the court formally approves the arrangement.

Supervision of the Arrangement

The PIP’s role continues with overseeing any payments from you, managing fees, and distributing creditor dividends. They regularly review the arrangement and report to creditors. If any significant changes are needed due to a change in your financial situation, further meetings may be held.

Completion of the Arrangement

On successful completion of the arrangement, the PIP reports to the ISI, the creditors and yourself to state that all terms have been complied with and all dividends to creditors have been distributed. You will then be able to start over debt free. You can work on rebuilding your credit rating and resume normal financial activities.

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