Other Insolvency Arrangement The older Deeds of Arrangement legislation has been largely superseded by the Personal Insolvency Act. The legislation remains in force. It does not require the involvement of Court or the Insolvency Service. It requires the consent of all creditors. Its principal objective is to require registration of arrangement so that they can be notified to the public. […]
Debt Relief Notices Where a Debt Relief Notice is issued and takes effect, the debtor concerned is discharged from the debts specified in it as qualifying debts. He is also discharged from all arrears charges and interest that have arisen during the proceedings (including the supervision period) unless a court order is made otherwise. The Debt Relief Notice lasts for […]
Initiation The Personal Insolvency Act allows for Debt Settlement Arrangements. When the arrangement is approved by 65 percent in value of creditors, it becomes binding on all of them. If the terms of the arrangement are completed, then after the period of the agreement (generally five years) the debtor is fully discharged from the debts. A debtor who wishes to […]
Proposed Debt Settlement Arrangement Where the personal insolvency practitioner has proposed a Debt Settlement Arrangement or Personal Insolvency Arrangement to which the debtor consents, the PIP is to convene a meeting for the purpose of consideration of the proposal. The Minister may make regulations relating to the holding of creditors meetings, which may provide for the holding of a meeting […]
Personal Insolvency Arrangements The provisions in relation to personal insolvency arrangements parallel those for debt settlement arrangements. The principal difference is that the personal insolvency arrangement may make provision for secured creditors. A secured creditor may not participate in the debt settlement arrangement in relation to a secured debt. Under personal insolvency arrangement, provision may be made for payment of […]
Terms of Arrangement and Discharge A personal insolvency arrangement must specify which debts are secured and which are unsecured. The maximum duration is 72 months. A further period of 12 months may be permitted under the agreement itself. Where the debtor performs all of his obligations under the arrangement, he shall stand discharged from the specified debts. He is discharged […]
Creditors Meeting Where a personal insolvency practitioner has prepared a proposal for a Personal Insolvency arrangement and the debtor has consented to that proposal and the calling of a creditors’ meeting, the personal insolvency practitioner, shall arrange for the holding of a meeting of the creditors for the purpose of considering the proposal for a Personal Insolvency Arrangement. When calling […]
Effect of Personal Insolvency Arrangement I While a Personal Insolvency Arrangement is in effect, the following shall be parties to it and, are bound by its terms the debtor, and in respect of every specified debt, the creditor concerned. A “specified debt” is a debt that is specified in a Personal Insolvency Arrangement as being subject to that Arrangement. Where […]
Personal Insolvency Service Guidelines The Insolvency Service is obliged under the Personal Insolvency Act, to prepare guidelines as to what constitutes a reasonable standard of living and reasonable living. It is to have regard to the CPI (consumer price index). Guidelines may be issued periodically and must be issued at intervals of not more than once yearly. The guidelines are […]
Personal Insolvency Act The Act provides non-judicial/non-court-based mechanisms for dealing with personal debt. A Debt Relief Notice allows for the discharge of relatively small levels of consumer debt. Debt Settlement Arrangements and Personal Insolvency Arrangements provide for the agreed settlement of unsecured debt and to some extent secured debt, less than €3 million in total on the non-judicial basis. Agreements […]