There are new arrangements for dealing with debt issues and several options are available to an insolvent individual, which are listed below.
The three new types of arrangement are:
Debt Relief Notice (DRN) – for debts of up to €35,000 for people with virtually no assets and very low income. These arrangements will be operated by the Money Advice and Budgeting Service (MABS).
Debt Settlement Arrangement (DSA) – for the agreed settlement of unsecured debts over a period of five or six years. Unsecured debt means debt which is not linked to any asset, for example credit card debt or credit union loans.
Personal Insolvency Arrangement (PIA) – for the agreed settlement of secured debt of up to €3 million (which can be increased by agreement) and unsecured debt over a period of six or seven years. Secured debt means debt which is linked to an asset, for example a mortgage on a house.
General rules for all arrangements
- You may avail of each of the new processes only once in your lifetime, and only one at a time.
- Full honesty and co-operation is paramount
- In all cases, you will be required to complete a Prescribed Financial Statement, act in good faith and co-operate fully with the process
- If you enter into an arrangement, your name will be included on a publicly available register by the Insolvency Service of Ireland
Contact Eugene McDarby PIP, on 1890 987 913 for further information or email email@example.com