The government introduced new legislation in 2012 to alleviate the personal debt crisis that had arisen in the State due to the economic, financial, banking and property crash that occurred in 2007/2008.
Since its inception in 2013 we have assisted hundreds of clients settle their debts through the personal insolvency process. This intervention has allowed them to retain their family home and put in place a long-term sustainable mortgage. In fact, as outlined in the case summaries below some of our clients have exited the process earlier than the standard 5/6 year term which has allowed them to finally move on with their lives free from unsustainable debts.
To consider if an individual is insolvent/bankrupt it is a simple mathematical test. If you are unable to meet your financial commitments as and when they fall due, you are insolvent.
We have included some recent insolvency case summaries below that were approved by creditors as examples of the work we do every day to help people to resolve their debts and stay in their homes.
We have also had a number of Section 115A appeal cases approved by both the Circuit Courts and the High Court. Section 115A appeal applications are required where a majority of creditors do not vote in favor of a PIA proposal. An application is then made to the court to request that the insolvency judge approve the arrangement despite the fact that it did not receive the required majority vote by creditors.
The number of licenced PIP’s has continued to decline from the peak number of 146 in June 2015. This number will continue to fall as this has become a niche area with less than 30 of the PIPs included on the ISI register actively operating and up-to-date with the legislation. This means it is even more important to get the right advice from the right PIP advisor
A PIA (Personal Insolvency Arrangement) is for both secured and unsecured debt. PIAs differ from other debt management solutions in that you must have both secured and unsecured debt to apply. Secured debts would include family home loans, mortgage arrears, BTL debts, hire purchase agreements and any loans secured to a property or assets that you can no longer afford to repay. A PIA is for a 6-year term.
A DSA (Debt Settlement Arrangement) is for unsecured debt only. A DSA is for unsecured debts that would mainly be residual debts from BTL/investment loans, personal loans, credit cards, store cards and overdrafts. A DSA is for a 5-year term.
Both solutions are legally binding and supported by law. Once approved a formula will calculate what net dividend you need to pay to your creditors. There will be one affordable payment through your Personal Insolvency Practitioner who in turn distributes that payment to your creditors over the term of your arrangement. Any unsecured debt balances that remain after the PIA or DSA is completed will be written off, while secured debt balances are dealt with according to the terms of the PIA agreement.
Revenue debts and other preferential creditors can elect to form part of the arrangement and be restructured and/or written off
Both a PIA & a DSA are arranged by a Personal Insolvency Practitioner (PIP). A PIP is a specialist who is licensed by the Insolvency Service of Ireland to provide services under the Personal Insolvency Act 2012.
The main consequences of Bankruptcy are:
Discharge from bankruptcy is normally after 12 months. However, this term could be shorter if settlement with creditors is reached but it could also be extended if a person does not fully cooperate with the process.
The Key points to note for those with personal debt problems:
What is involved in the process when you engage with us?
Case Summary 1 – Accelerated DSA (6 months)
Case Summary 2 – PIA - Variation of a Standard 6-year PIA term
Case Summary 3 – Accelerated PIA (12 months)
Q&A Interview on Personal Insolvency and Bankruptcy by Mark Ryan of Quintas with David Sweeney of Sweeney Solicitors
Mark Ryan is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner.
Mark Ryan has been operating as a PIP since the inception of the Personal Insolvency legislation in 2012. With years of experience in negotiating debt restructures, personal insolvency arrangements and dealing with bankruptcy applications our team can advise you on the best course of action.
Contact our expert
Banking & Insolvency Partner
Mark has worked in practice since 1998 and he has experience in all aspects of an accountancy firm. Mark is responsible for providing debt resolution, personal insolvency and bankruptcy services. He also provides business advisory services to a wide variety of clients in different business sectors.
Mark has extensive experience in financial planning, restructuring and business advisory services.
Mark was one of the 1st Personal Insolvency Practitioners (PIPs) authorised by the Insolvency Service of Ireland (ISI) in August 2013. He has assisted hundreds of people resolve their debts and make a fresh start with their lives.
A PIP is a professional financial advisor who is regulated by the ISI to represent individuals in debt in applying for a DSA or PIA and to administer the agreement once it has been accepted and approved. This is a relatively new area of Law which was only introduced into Ireland in 2012.
Qualifications & Previous Roles
Mark completed his qualifications with the Association of Chartered Certified Accountants (ACCA) in December 1999 and he is a member of the Institute of Certified Public Accountants (CPA)
Mark completed his Personal Insolvency Practitioner (PIP) Certificate Examination in June 2013
Personal Insolvency & Bankruptcy, Debt Resolution, Financial Planning, Advisory, Restructuring.
You must hold onto your books and records for 6 years after any transaction is completed.
The single parent tax credit can now only be claimed by the “primary carer” as opposed to both parents as was the case pre 2014.