Debt Solutions DSA Insolvency

Am I eligible for a Debt Settlement Arrangement?

Apply for a DSA

What is a Debt Settlement Arrangement?

A Debt Settlement Arrangement or DSA is a formal debt solution established under the Personal Insolvency Act of 2012, which provides individuals that are Insolvent (facing significant personal debt challenges) with a structured formal process for debt resolution.

The DSA was considered a much needed progressive step toward addressing financial challenges in Ireland, alongside the other Insolvency measures that were introduced by the Act, including the Debt Relief Notice (DRN) and the Personal Insolvency Arrangement (PIA). The primary aim of a DSA is to offer a solution for individuals struggling with unmanageable unsecured debts, such as credit cards, loans, overdrafts and utility bill arrears, to name a few.

Eligibility Criteria for a DSA

Not everyone is eligible for a DSA as there are certain criteria involved. This includes the following:

  • You must be classed as Insolvent (unable to pay your debts when they fall due). Your Debt Advisor or Personal Insolvency Practitioner (PIP) will be able to help determine this.
  • You must be unlikely to become insolvent in the next 5 years (the usual lifespan of a DSA).
  • You must have one or more unsecured debts.
  • No more than 25% of your debts can be obtained in the past 6 months.
  • You must reside in Ireland.
  • A DSA only deals with unsecured debts.
  • There are some unsecured debts that need creditor consent to be included, such as taxes, household charges, local government charges.
  • Secured debts cannot be included in a DSA.
  • At least 65% of the lenders (by debt value) involved in the DSA application must vote in favour of the proposal, for it to be accepted.
  • You must never have done a DSA before (You can only do one in your lifetime).
  • You must not have had a Protective Certificate (PC) for a DSA in the past year.
  • You must not have had a Personal Insolvency Arrangement in the past 5 years.
  • You must not have had a Debt Relief Notice in the past 3 years.
  • You cannot have been involved in a Bankruptcy in the past 5 years.

There may be alternative solutions available if you do not meet any of the criteria for obtaining a Debt Settlement Arrangement above.

DSA Application Process

If you are considering applying for a DSA, you will need the services of a PIP, who is the professional that will act on your behalf throughout the process of application. There is a list of PIPs on the Insolvency Service of Ireland (ISI) website, or we have 5 PIPs in-house if you would like to contact us or our sister company McCambridge Duffy. We also offer a free consultation service, which some insolvency providers charge for.

Your PIP will take you through the whole application process from start to finish and explain everything you need to know about a DSA, how it works, and any fees or costs involved. There is no obligation to proceed with a DSA at this stage. Your PIP will help you work out an affordable repayment plan and if accepted by creditors, will oversee your DSA for it’s duration. On completion of your DSA, any remaining debts could be written off, allowing you to start over, free of debt.

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