• Article • 5327 Views
W.O. McGrory & Co offers a specialist service to individuals and company directors experiencing personal financial problems that need the assistance of professional intervention. The firm is registered as a recognised intermediary qualified to act of behalf of people involved in MARP (Mortgage Approved Resolution Process).
We employ our own in house Personal Insolvency Practitioner (PIP). Tony Mallon is authorised by the Insolvency Service of Ireland under section 162 of the Act to carry on the practice as a Personal Insolvency Practitioner – ISI Authorisation Number: PC00059
The introduction into law of the new Personal Insolvency Act 2012 passed recently, introduces new options to allow people deal with their financial difficulties ranging from unsustainable home mortgages, buy to let type investments, credit card and credit union debts or who are dealing with the financial fallout from a marital breakdown.
Please find below our Personal Insolvency Client Interview Form ready for download.
Our firm has a well established reputation for liaising between clients and the banks and other financial institutions in resolving these sensitive and problematic cases. The scale of people in difficulties can be summarised as follows:
86,146* Residential mortgages in arrears (11.3%) of the entire private residential mortgage market.
In excess of 168,000 mortgages in some form of difficulties
26,770* (17.9%) of the buy to let market in arrears of more than 90 days
An estimated 50% of properties in negative equity
* Figures as per the Central Bank Quarter 3 returns – September 2012.
The new Personal Insolvency legislation allows for an overhaul of the existing bankruptcy and personal insolvency regime. In particular the legislation will introduce non-judicial voluntary arrangement solutions for insolvent individuals.
The key components of the legislation are as follows:
The Insolvency Service of Ireland’s office is now set up to administer and oversee all non-judicial arrangements formally agreed between lenders and their customers. It will not however, be involved in any negotiations between the banks and their customers. The Insolvency Service’s role is restricted to the registering of any arrangements granted by the courts and the supervision and regulation of Personal Insolvency Practitioners (PIP’s) who will be acting on behalf of people in difficulties.
The legislation introduces 3 new forms of debt relief options that people will be able to avail of. A summary of each option is set out below.
1. Debt Relief Notices (DRN)
The debt relief notice procedure provides for the write off of qualifying unsecured debt up to a maximum of €20,000.
Examples of qualifying unsecured debt include:
– car loans
– credit union loans
– credit card debts
– bank overdraft or any unsecured loan from a bank
– Utility bills
– rent arrears
– student loans
Effects of a Debt Relief Notice
2. Debt Settlement Arrangements (DSA)
– owe a debt to at least 1 unsecured creditor
– be insolvent as defined by the Bill*
– be resident in Ireland for at least 1 year
– unlikely to become solvent within 5 years
* The definition of insolvent in The Personal Insolvency Bill is defined as unable to discharge their debts in full as they fall due. NB: paying interest only even with the bank’s agreement does not mean that you are paying your debts in full as they fall due within the meaning of the legislation.
Debt Settlement Arrangement Approval
3. Personal Insolvency Arrangement –
Secured & Unsecured debt from €20,000 to €3,000,000*
– Key features
Any proposal must be approved by:
A debtor (customer) must:
* The €3,000,000 cap can be waived with the written consent of all the secured creditors (Banks)
Personal Insolvency Arrangements Approval
List of debts that cannot be included in any of the 3 Debt Settlement Arrangements (excluded debts)
List of debts that can be included in any of the 3 Debt Settlement Arrangements subject to consent & agreement (excludable debts)
Call us today on (041) 9836707 or contact us for more information or to arrange a free initial consultation.