Personal Insolvency Arrangement
We can reduce your mortgage and debt repayments to an affordable amount
The Personal Insolvency Arrangement (PIA) is a debt solution brought in by the Government in 2013 to deal with secured debt (mortgage and secured loans) and unsecured debt (credit card, loans).
The PIA is available to people who are struggling to make monthly repayments towards their debt.
The example below shows how mortgage and unsecured debt can be written off to make payments more affordable.
Example of a PIA
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Writing down Mortgage / Secured Debts
Creditors are offered an agreed percentage of what they are owed and an offer to pay this over a set period is made. If the debtor is in negative equity in regard to one or more secured properties such as a mortgaged home, the proposal may include provisions for writing down a proportion of the mortgage, and for reducing mortgage payments by extending the repayment period for a number of additional years.
For the Personal Insolvency Arrangement to be accepted, the applicant must have the support of at least 65% of all voting creditors both secured and unsecured. In addition at least 50% of secured creditors who choose to vote and at least 50% of unsecured creditors who choose to vote must vote in favour of the Personal Insolvency Arrangement proposal.
The Personal Insolvency Arrangement will normally run for a term of six years but it may be extended by an additional year.
A debtor may enter into a Personal Insolvency Arrangement only once in his or her lifetime unless exceptional or other external factors caused the debtor’s insolvency.
You are considered suitable for a PIA if you meet the following conditions
- You are insolvent and unable to pay your debts in full as they fall due.
- You are struggling to keep up with mortgage repayments.
- You have a total of one or more unsecured creditors.
- Your domicile must be in the Republic of Ireland, or you must have, within the past year, ordinarily resided or had a place of business in the Republic of Ireland.
- You have completed a prescribed financial statement and signed the statutory declaration stating that it is both true and accurate.
- You have obtained a statement from the Personal Insolvency Practitioner, that they
are of the opinion that;
1)The information in the PFS is true and accurate.
2) You are eligible to make a proposal for a PIA; and
3) Having Considered the PFS, they are of the opinion that you will not be solvent in the next 5 years.
4) Having considered all possible options, a PIA is the best solution for you and that there is reasonable prospect that you will become solvent upon completion of the PIA
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In a PIA you could
- Take control of your secured and unsecured debts
- Protect your home
- Reduce your mortgage to a more affordable amount
- have mortgage and debt repayments that you can afford
- Combine debts into 1 affordable monthly payment
- Repay your debts in 6 years with a set goal for completion
- Write off any remaining unsecured debt on completion of the PIA
With the assistance of a Personal Insolvency Practitioner (PIP), the debtor can apply for a 'Protective Certificate' while the Personal Insolvency Arrangement is being prepared. This prevents creditors from taking any action for the recovery while the PIA is being drafted.
We have helped 1,000s of people with their debts over the years. We are a leading provider of Insolvency solutions and have been in business for over 80 years. We have a great reputation for the service we provide to our clients and also among all the major lenders.
For expert advice about your debts
speak to our fully trained experts on
01 247 8899.
Unlike most other Insolvency providers, we do not charge a fee for our advice. All our advice is free. A fee is only ever payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any service.
Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term. Creditors may still contact you with promotional material or to fulfil contractual obligations to you but they should deal with us in all aspects relating to the outstanding debts. Interest and Charges will only be frozen at the creditors' discretion. Other conditions apply. These will be discussed in detail during your consultation.