PIA Confirmation
Personal Insolvency 2012
Calling of creditors’ meeting.
106.— (1) 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 of the debtor for the purpose of considering the proposal for a Personal Insolvency Arrangement.
(2) When calling a creditors’ meeting under this section, the personal insolvency practitioner shall do so in accordance with any regulations made under section 111 and, in any case, shall—
(a) give each creditor at least 14 days written notice of the meeting and the date on which, and time and place at which, the meeting will be held,
(b) ensure that the notice referred to in paragraph (a) is accompanied by a copy of each of the documents referred to in section 107 , and
(c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in section 107 with the Insolvency Service.
(3) Where a creditors’ meeting referred to in subsection (1) does not take place before the expiry of the protective certificate, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end.
Documents to be given to creditors and the Insolvency Service when summoning a creditors’ meeting.
107.— (1) The documents referred to in section 106 (2)(b) are—
(a) a completed statement of the debtor’s financial affairs, showing the debtor’s position of insolvency, in the form of the Prescribed Financial Statement;
(b) the terms of the proposal for a Personal Insolvency Arrangement;
(c) statements by the personal insolvency practitioner to the effect that:
(i) he or she has been instructed by the debtor to act as personal insolvency practitioner in connection with the Personal Insolvency Arrangement procedure, he or she has consented to so act and that he or she is a person entitled to act as a personal insolvency practitioner;
(ii) he or she has advised the debtor in accordance with section 52 of the debtor’s options for managing the debtor’s financial difficulties;
(iii) he or she is not aware of any reasonable grounds to believe that the information contained in the debtor’s Prescribed Financial Statement is other than complete and accurate;
(iv) he or she is of the opinion that the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91 ;
(d) a report of the personal insolvency practitioner—
(i) describing the outcome for creditors, and having regard to the financial circumstances of the debtor whether or not the proposed Personal Insolvency Arrangement represents a fair outcome for the creditors, and indicating, where relevant, how the financial outcome for creditors (whether individually or as a member of a class of creditors) under the terms of the proposal is likely to be better than the estimated financial outcome for such creditors if the debtor were to be adjudicated a bankrupt (having regard to, amongst other things, the estimated costs of the bankruptcy process); and
(ii) indicating whether or not he or she considers that the debtor is reasonably likely to be able to comply with the terms of the proposed Personal Insolvency Arrangement.
(2) Where a debtor’s financial position has materially changed in the period between the completion by him or her of a Prescribed Financial Statement under section 50 and the giving of notice of a creditors’ meeting pursuant to section 106 (2)—
(a) the debtor shall inform the personal insolvency practitioner of that fact and of the nature of such change, and
(b) the personal insolvency practitioner shall, if he or she considers that the change necessitates the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new statement, and where those circumstances arise the reference in this section to the Prescribed Financial Statement shall be construed as references to the new Prescribed Financial Statement.
(3) Where a new Prescribed Financial Statement is completed pursuant to subsection (2), the personal insolvency practitioner shall furnish a copy of that Statement to the Insolvency Service.
Voting rights at creditors’ meetings.
108.— (1) A vote held at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement shall be held in accordance with this section, section 110 and regulations made under section 111 .
(2) Subject to subsection (1), the voting rights exercisable by a creditor at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement shall be proportionate to the amount of the debt due by the debtor to the creditor on the day the protective certificate is issued.
(3) In the case of a secured debt, where:
(a) the value of security held by a creditor who is a secured creditor is determined, pursuant to section 105 , to be less than the amount of the secured debt due to the creditor on the day the protective certificate is issued; and
(b) the proposed Personal Insolvency Arrangement provides for all or part (“relevant portion”) of that secured debt to:
(i) rank equally with, and abate in equal proportion to, the unsecured debts covered by the Arrangement; and
(ii) be discharged with those unsecured debts on completion of the obligations specified in the Arrangement,
then, the relevant portion of that secured debt shall, for the purposes of this section (other than this subsection), section 110 and regulations made under section 111 , be treated as unsecured and the creditor concerned may vote in respect of the relevant portion of that debt as an unsecured creditor.
(4) Where a secured creditor consents in writing to the inclusion of terms in the Personal Insolvency Arrangement providing for the surrender to the debtor of his or her security upon the coming into effect of the Arrangement, that creditor shall be treated as an unsecured creditor for the purposes of this section (other than this subsection), section 110 and regulations made under section 111 and shall only be entitled to vote at a creditors’ meeting as an unsecured creditor.
(5) A creditor who is a connected person as respects the debtor may not vote in favour of a proposal for a Personal Insolvency Arrangement at a creditors’ meeting but that creditor may vote against the proposal.
(6) Where only one creditor is entitled to vote at the creditors’ meeting (whether in respect of one or more debts), the requirement to hold a creditors’ meeting shall be satisfied where the creditor concerned notifies the personal insolvency practitioner in writing of that creditor’s approval or otherwise of the proposal for a Personal Insolvency Arrangement.
(7) Subject to any regulations made under section 111 , only the person who appears to the personal insolvency practitioner to be the owner of the debt (or an agent acting on behalf of that person) shall be entitled to receive notices required to be sent to a creditor under this Chapter or to vote at the creditors’ meeting.
(8) Where no creditor votes, the proposed Personal Insolvency Arrangement shall be deemed to have been approved under this section.
(9) Where on the taking of a vote at a creditors’ meeting held for the purpose of considering a proposal for a Personal Insolvency Arrangement the proposal is not approved in accordance with subsection (1), the Personal Insolvency Arrangement procedure shall terminate and the protective certificate issued under section 95 shall cease to have effect.
Conduct of creditors’ meeting for consideration of proposed Personal Insolvency Arrangement.
109.— (1) A creditors’ meeting called in accordance with section 106 shall consider the proposal for a Personal Insolvency Arrangement and, subject to subsection (4), shall vote on the proposal.
(2) A creditors’ meeting called by the personal insolvency practitioner under section 106 shall, subject to this section, be conducted in accordance with any regulations made under section 111 .
(3) Subject to subsection (4) the proposal for a Personal Insolvency Arrangement may, before the proposal has been voted upon, be subject to a proposal for a modification where the modification addresses an ambiguity or rectifies an error in the proposed Personal Insolvency Arrangement where—
(a) the modification has been proposed by a creditor or the personal insolvency practitioner, and
(b) the debtor gives his or her written consent to the modification.
(4) The personal insolvency practitioner may where he or she believes it is in the interests of obtaining approval of the creditors at the meeting, adjourn the meeting and with the consent in writing of the debtor shall prepare an amended proposal for a Personal Insolvency Arrangement.
(5) Where the personal insolvency practitioner prepares an amended proposal for a Personal Insolvency Arrangement pursuant to subsection (4) he or she shall—
(a) notify the debtor of the date on which, and time and place at which, the adjourned meeting will be held,
(b) at least 7 days before the day of the adjourned meeting, unless all of the creditors agree in writing to receive a shorter period of notice, notify each creditor of the date on which, and time and place at which, the adjourned meeting will be held,
(c) ensure that the notices referred to in paragraphs (a) and (b) are accompanied by a copy of the amended proposal, and
(d) lodge a copy of the notice referred to in paragraph (b) and a copy of the amended proposal with the Insolvency Service.
(6) An adjournment for the purpose of preparing an amended proposal for a Personal Insolvency Arrangement pursuant to subsection (4) may occur once only in the course of the period of validity of a protective certificate (including any extension of such period).
Proportion of creditors required to approve Personal Insolvency Arrangement.
110.— (1) Subject to subsection (2) a proposed Personal Insolvency Arrangement shall be considered as having been approved by a creditors’ meeting held under this Chapter where—
(a) a majority of creditors representing not less than 65 per cent of the total amount of the debtor’s debts due to the creditors participating in the meeting and voting have voted in favour of the proposal,
(b) creditors representing more than 50 per cent of the value of the secured debts due to creditors who are—
(i) entitled to vote, and
(ii) have voted,
at the meeting as secured creditors have voted in favour of the proposal, and
(c) creditors representing more than 50 per cent of the amount of the unsecured debts of creditors who—
(i) are entitled to vote, and
(ii) have voted,
at the meeting as unsecured creditors have voted in favour of the proposal.
(2) For the purposes of subsection (1)(b) the value of a secured debt shall be—
(a) the market value of the security concerned determined in accordance with section 105 , or
(b) the amount of the debt secured by the security on the day the protective certificate is issued,
whichever is the lesser.
Procedures for the conduct of creditors meetings.
111.— (1) The Minister may make regulations relating to the holding of creditors’ meetings under this Chapter, and without prejudice to the generality of the Minister’s power under this section, such regulations may provide for—
(a) the holding of a meeting in circumstances where not all of the creditors are present in the same venue,
(b) the voting process including providing for the communication of creditors’ votes to the personal insolvency practitioner by telephony or electronically, and
(c) appointment of proxies to vote at such meetings.
(2) The venue for the holding of a creditors’ meeting shall be situated within the State.
(3) The period of notice of the meeting of creditors may be waived or abridged where the consent of all the creditors to such waiver or abridgement is given in writing.
Steps to be taken by personal insolvency practitioner following approval of proposal for Personal Insolvency Arrangement.
112.— (1) Where a Personal Insolvency Arrangement is approved in accordance with section 110 , the personal insolvency practitioner shall as soon as practicable after the meeting has concluded notify the Insolvency Service and each creditor concerned and enclose with that notification—
(a) a certificate with the result of the vote taken at the creditors’ meeting and identifying the proportions of the respective categories of votes cast by those voting at the creditors’ meeting, and
(b) a copy of the approved Personal Insolvency Arrangement.
(2) The personal insolvency practitioner shall, in addition to the documents referred to in subsection (1) also send a notice to each creditor indicating that he or she may make objection to the coming into effect of the Personal Insolvency Arrangement by lodging a notice of objection with the appropriate court, within 14 days of the date of the sending of that notice.
(3) A creditor may lodge a notice of objection with the appropriate court within 14 days of the date of the sending by the personal insolvency practitioner of the notice referred to in subsection (2) and shall at the same time send a copy of the notice of objection to—
(a) the Insolvency Service, and
(b) the personal insolvency practitioner.
Steps to be taken by Insolvency Service following notification of approval of Personal Insolvency Arrangement
113.— (1) On receipt of a notification by the personal insolvency practitioner pursuant to section 112 , the Insolvency Service shall record the approval in the Register of Personal Insolvency Arrangements, and notify the appropriate court and furnish to that court a copy of the Personal Insolvency Arrangement.
(2) Where the notification of the personal insolvency practitioner is received by the Insolvency Service before the expiry of the period of the protective certificate, such protective certificate shall continue in force until the Personal Insolvency Arrangement comes into effect or all objections lodged with the appropriate court pursuant to section 112 (3) have been determined by the court.
Determination of objection lodged under section 12 .
114.— (1) The grounds on which objection may be made to the coming into effect of the Personal Insolvency Arrangement are those specified in section 120 .
(2) The hearing of an objection lodged under section 112 (3) shall be heard with all due expedition.
(3) Where the appropriate court upholds the objection to the Personal Insolvency Arrangement, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end, and the protective certificate issued under section 95 shall cease to have effect.
Coming into effect of Personal Insolvency Arrangement.
115.— (1) Where—
(a) no objection is lodged by a creditor with the appropriate court within 14 days of the giving of the notice referred to in section 112 , or
(b) an objection is lodged with the appropriate court and the matter is determined by the court on the basis that the objection should not be allowed,
the appropriate court shall proceed to consider, in accordance with this section, whether to approve the coming into effect of the Personal Insolvency Arrangement.
(2) For the purposes of its consideration under subsection (1), the appropriate court shall consider the copy of the Personal Insolvency Arrangement furnished to it under section 113 (1) and, subject to subsection (3)—
(a) shall approve the coming into effect of the Arrangement, if satisfied that the—
(i) eligibility criteria specified in section 91 have been satisfied,
(ii) mandatory requirements referred to in section 99 (2) have been complied with,
(iii) Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or otherwise affect such a debt, and
(iv) requisite proportions of creditors have approved the proposal for a Personal Insolvency Arrangement,
and
(b) if not so satisfied, shall refuse to approve the coming into effect of the Personal Insolvency Arrangement.
(3) The appropriate court, where it requires further information or evidence for the purpose of its arriving at a decision under subsection (1), may hold a hearing, which hearing shall be on notice to the Insolvency Service and the personal insolvency practitioner concerned.
(4) A hearing referred to in subsection (3), unless the appropriate court considers it appropriate to hold it in public, shall be held otherwise than in public.
(5) For the purposes of subsection (2), the court may accept—
(a) a certificate issued by the Insolvency Service certifying that the eligibility criteria specified in section 91 have been satisfied as evidence that such eligibility criteria have been satisfied, and
(b) the certificate issued by the personal insolvency practitioner concerned pursuant to section 112 (1)(a) as evidence that the requisite proportions of creditors have approved the proposal for a Personal Insolvency Arrangement.
(6) The registrar of the appropriate court shall notify the Insolvency Service and the personal insolvency practitioner concerned where the court—
(a) approves or refuses to approve the coming into effect of the Personal Insolvency Arrangement under this section, or
(b) decides to hold a hearing referred to in subsection (3).
(7) On receipt of a notification under subsection (6) of the approval of the coming into effect of the Personal Insolvency Arrangement, the Insolvency Service shall register the Personal Insolvency Arrangement in the Register of Personal Insolvency Arrangements.
(8) The Personal Insolvency Arrangement shall come into effect upon being registered in the Register of Personal Insolvency Arrangements.