After a year of running a busy office with no clients, the doors of the Insolvency Service of Ireland are open for business. For people struggling with mortgage and other debt, the Personal Insolvency Arrangement was intended to be a solution, but you need to be able to afford to pay fees for this solution and you need the personal insolvency practitioner’s proposal to be accepted by your creditors.
If you don’t have a good stable income, then forget about it.
If you are “uni-banked”, then forget it.
The creditors need to vote to accept any proposal, so for people with a home mortgage and some unsecured debt, the mortgage lender has no reason to agree to a P.I.A. at all.
The fallback option is bankruptcy. It’s hard to believe that the 3 year bankruptcy legislation has still not been signed into law as of 19th September 2013, so we are still stuck with the 12 year version. Officials have said “unofficially” that the new legislation will be retrospective, but this is not helpful to the people in desperate circumstances today. We just don’t seem to coordinate things well in this country. Maybe the State should employ a few wedding planners.
Good Financial Housekeeping