confidential no-obligation advice 01 247 88 99

PIA (Personal Insolvency Arrangement)

What is a PIA?

A PIA (short for Personal Insolvency Arrangement) is a formal debt solution designed to help people that are struggling with mortgage payments that are too high, or unaffordable restructures, or arrears and other debts such as credit cards, loans etc… The main aim of a PIA is to:

  • help you keep your home by restructuring your mortgage or arrears (there are several different approaches to this in a PIA).
  • reduce your debts to an affordable and manageable amount, whilst ensuring you have a reasonable standard of living.
  • reduce monthly repayments to an affordable amount.
  • write off any remaining unpaid debts on completion of the arrangement.
  • have formal protection from lenders.

If you are experiencing financial difficulty and would like to find out more about a PIA, fill in the form and we will get in touch. We will assess your situation and advise you on all options available. All advice is free and confidential and you are under no obligation by speaking with us.

Personal Insolvency Arrangement

Get advice

Confidential, no-obligation advice on your mortgage, arrears or debts.

By submitting this form I consent to the processing of my data & agree with the National Debt Relief Privacy Notice
Personal Insolvency Arrangement

Example of a PIA

Below is a typical example of a PIA. Our clients are a family with three children. The parents went through a period of financial difficulty after a change in circumstances with employment. They fell into arrears on their mortgage and their unsecured debts built up due to the reduced household income. After assessing their situation, it was determined that they were in fact Insolvent (unable to pay their debts). A PIA was a suitable option for them to help address their financial situation. Their PIA was accepted by their lenders.

In the PIA, they will make reduced payments for 6 years. On completion of the PIA, the mortgage payments will remain at an affordable level. Any agreed remaining debts will be written off on completion of the arrangement.

Before PIA

  • Mortgage balance : €285,647
  • Mortgage payments : €1,436 per month
  • Significant unsecured debts

During PIA (6 years)

  • NEW Mortgage balance : €120,000
  • NEW Mortgage payments : €474 per month
  • Unsecured debt repayments reduced

After PIA (completion)

  • Mortgage written off : €165,647
  • Mortgage payments : €582 per month
  • Remaining unsecured debts : written off

PIA Frequently Asked Questions

Browse our PIA FAQS to find out more about a PIA, or get in touch with us if you have any questions. Fill in the form on this page, or click here to send us a WhatsApp Message.

To put it simply, a PIA is a formal Insolvency solution that restructures your unaffordable secured debts (such a loan secured against property or assets) and unsecured debts (such as credit cards or loans), with the main purpose of protecting your home and bringing the debts in line with your affordability. This can be done in several different ways and the method of restructure really depends on your individual circumstances.

Because a PIA is very unique to your situation, a thorough assessment is carried out to determine if and how it will work for you. A PIP (Personal Insolvency Practitioner) is the professional who is qualified to carry out this assessment and to work out what the best approach is for dealing with your debts. You cannot avail of a PIA or any Insolvency solution without the services of a PIP. Your PIP will also facilitate your PIA application. If your PIA is accepted by your creditors or the court, your PIP will also oversee your PIA for it’s duration, through to completion.

A PIA usually consists of manageable monthly payments that go towards your restructured mortgage and other debts, usually for a period of up to 6 years (some arrangements might have a much shorter or slightly longer duration). The monthly payments come from the Income left over after a realistic standard of living has been deducted from your household budget. In some cases, a PIA may involve using a lump sum payment to address the debts, if it is available.

At the end of the PIA, you may be released from the secured debt, or continue paying it according to the agreed terms laid out in the arrangement. Any remaining unsecured debts are written off.

Determining if you are eligible for a PIA really depends on your assessment, but there is some specific criteria involved. You must:

  • Be classed as Insolvent (unable to pay your contractual secured / unsecured debts).
  • Have debt outstanding to at least one secured lender holding security over a property or assets in Ireland.
  • Not have obtained 25% of your total debts recently (in the past six months).
  • Not have had a DRN (Debt Relief Notice) in the past three years.
  • Not have had a DSA (Debt Settlement Arrangement) in the past five years.
  • Not have done a PIA before (You can only ever do a PIA once).
  • Not be involved in Bankruptcy in the past five years.
  • Not have a Protective Certificate issued in respect of another PIA in the past year (A Protective Certificate is the document issued by the court that offers protection from your lenders for you and your assets during your PIA or DSA application).

Below are some of the most common ways in which your mortgage can be restructured in a PIA. We understand that a lot of this information can be quite overwhleming, so please do get in touch if you have any questions in relation to how your mortgage might be dealt with in a PIA. We are happy to answer any queries you might have. Our PIPs and senior advisors will be able to determine the best course of action for your mortgage restructure in relation to your situation.

Principal Reduction (Write off)

The mortgage balance is lowered to an affordable amount (but not below market value).

Interest rate reduction

An Interest rate reduction is applied to mortgage to bring it down to an affordable amount.

Term extension

The mortgage term is increased which can provide lower mortgage payments.

This type of restructure can benefit people with large unaffordable unsecured debt.

Split mortgage

A portion of the mortgage is set aside or 'warehoused' to be resolved at a later date.

This can benefit people who are expecting their income to improve in the short to medium term, or people who are expecting a lump sum payment some time in the future.

Hybrid split mortgage

This is an alternative to a Split mortgage, where a portion of the mortgage is warehoused and a portion of the mortgage is written off.

Less common restucture methods

Below are some further restructure methods that are available but less likely to be used in a PIA.

Fixed payments

Mortgage payments are fixed at a reduced rate, allowing for affordable payments to be made towards your unsecured debts.

Interest only or Interest only part capital

Mortgage could be changed to Interest only or Interest only and part capital, allowing for additional money to go towards your unsecured debts.

Debt for equity swap

This method is very rarely used in a PIA: Mortgage lender may agree to write off some of the mortgage in exchange for a percentage share of the property.

Mortgage to rent

This method results in loss of ownership of your home, but allows you to remain in the property. A Housing association or County Council may purchase the property.

Deferred payments

Mortgage payments are suspended for a length of time (but not beyond the duration of a PIA). During this time, the payments can be directed towards your unsecured debts. The mortgage can be prioritised after the payments are finished and the unsecured debts are cleared.

Capitalisation of arrears

This adds any outstanding mortgage arrears to the existing mortgage. It can help improve monthly income as the arrears are now paid down over the remaining mortgage term instead of having to be dealt with in a shorter timeframe.

Aside from dealing with your mortgage, you may have unsecured debts, such as credit cards or loans, that need addressed under your PIA. You usually will have some sort of restructure or lower affordable monthly repayments towards these types of debt during your PIA. Then, on successful completion of the PIA, any remaining unsecured debts are legally cleared / written off.

Firstly, we will only put forward a PIA application if we believe it will be successful. This will help increase your chances of a successful PIA. If we do not think a PIA would be accepted, we would not put an application through for you. In saying that, we cannot 100% guarantee if a PIA will be accepted as we cannot predict how lenders will behave, so there may be times where a PIA proposal is rejected, even if we believe it would be the best outcome for all parties involved.

If this happens we might be able to request a court review of the lender rejection, if you are elgible for this service. The court will review the application and rejection. If they deem it the application to be suitable, they may impose the PIA on your creditors. If you are not eligible for court review, you may have to seek alternative insolvency arrangements. If, in the future your situation has not been resolved, you could get in touch stating you would like to try again with a PIA application.

  • Restructure your secured debt, such as your property, so that it becomes affordable.
  • One of the main goals of a PIA is to help you remain in your home wherever possible.
  • Reduce your unsecured debts and repayments to an affordable amount.
  • Any unpaid unsecured debts are written off on completion.
  • Lenders involved are unable to pursue you for repayments and cannot take legal action against you when in a PIA. Your lenders must deal with your PIP.
  • Interest and charges are frozen on your unsecured debts.
  • PIA's usually run for up to 6 years, but some can have a shorter duration. ie, if you can gain access to lump sum of money, which can be put towards the debts.
  • A PIA allows a reasonable budget for your standard of living.

  • Your credit rating will be impacted during the PIA. You can begin to repair your credit rating on completion of the PIA.
  • You cannot obtain more than €650 euro in credit without informing the lender that you are currently in a PIA.
  • If your circumstances change during the PIA, your PIP will need to work with your creditors, the ISI and the court to have the terms of your PIA amended, so that your PIA can succesfully remain in place. If amended terms are not accepted, this could result in your PIA failing.
  • Details of your PIA will be entered onto a public register of PIAs with the Insolvency Service of Ireland.
  • You can only do a PIA once in your lifetime.

All fees and costs will be explained in detail by your PIP, prior to your PIA application.

Some PIPs charge an initial consultation fee when you are entering into a PIA. We offer a free initial consultation. Only if your PIA application is successful will we receive any fees for adminstering and managing your PIA. The fees comes from your agreed payments to creditors, so you will never receive a bill from us. If your PIA application is not accepted, you pay nothing.

The ISI have also waived their application fees for a PIA.

There is a state funded scheme also available, called the Abhaile Scheme, where you may be entitled to professional legal or financial advice free of charge, if you have Mortgage Arrears. A dedicated advisor from your local Money Advice and Budgeting Service (MABS), will be able to provide further information on this.

Other Debt Solutions

If a PIA is not the right Insolvency solution for you, there may be other options available. You can read more about these below. If you would like any information on how you can address your unaffordable mortgage, arrears or other debts, please get in touch for free and confidential advice today.

Debt Settlement Arrangement
DSA (Debt Settlement Arrangement)

A DSA is a solution created to help people address their difficulties with unsecured debt repayments (such as credit cards, loans, overdrafts etc...).

  • Affordable debt repayments
  • Protection from creditors
  • Interest and charges frozen
  • Remaining debt written off on completion
Debt Relief Notice
DRN (Debt Relief Notice)

A DRN is a formal debt solution, created to help people who are unable to repay their debts (up to the value of €35,000) and have little or no assets.

  • Debts are written off on completion
  • Protection from creditors
  • Interest and charges frozen
  • No monthly payments are required during the DRN period (3 years)

Bankruptcy is a formal solution for people who are unable to pay their debts (over the value of €20,000) and have explored all other Insolvency options. It is usually seen as a last resort debt solution.

  • Protection from Creditors
  • Addresses your debts
  • Allows for a reasonable standard of living
  • Peace of mind from your creditors

Client Testimonials

Struggling with mortgage payments, arrears or debts? Get a review with one of our advisors.

If you would like a free Insolvency review of your financial situation, fill in the Fact Find form providing as much information as possible and send it through. Our advisors will review your information and get in touch to advise you of all options available.

Open Monday to Friday 8am-8pm is a trading style of McCambridge Duffy. McCambridge Duffy Limited is a Limited Company registered in Ireland | Registered number 527584 | Registered office Suite 6, Spencer House, High Road, Letterkenny, Co. Donegal, F92 V8XC

All our advice is free. A fee is only payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any debt solution.

Ronan Duffy, Daragh Duffy, Daniel Rule and Judy Mooney are authorised by the Insolvency Service of Ireland to carry on practice as personal insolvency practitioners. Ronan Duffy, Daniel Rule and Judy Mooney are authorised to act as insolvency practitioners by Institute of Chartered Accountants Scotland.