A Personal Insolvency Arrangement (“PIA”) can include secured and unsecured debts, but certain debts cannot be included in a PIA and certain other debts require the consent of the creditor prior to being included. A limit of €3m applies to the amount of secured debt that can be included in a PIA, unless all secured creditors consent to the inclusion of a higher amount. The PIA differs from a Debt Settlement Arrangement (DSA) as it includes secured debt. Secured debt is a debt secured by an asset; e.g. a housing loan where a house is mortgaged to secure the loan debt. A PIA must be agreed by the debtor and approved at a creditors’ meeting by qualified majority of creditors. In addition it must be processed by the ISI and approved by the Court. Under a PIA, a debtor’s unsecured debts will be settled over a period of up to 6 years (extendable to 7 years in certain circumstances) and the debtor will be released from those unsecured debts at the end of that period. Secured debts can be restructured under a PIA (e.g. to provide for payments for a certain period or a write-down of a portion of negative equity). Depending on the terms of the PIA, the debtor may be released from a secured debt at the end of PIA period or the secured debt can continue to be payable by the debtor (although perhaps on restructured terms).
Personal Insolvency Arrangement
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Application To Court
Engage with a Personal Insolvency Practitioner (“PIP”) to seek Court issue of Protective Certificate