Donegal’s first Personal Insolvency Arrangement (PIA) has been agreed and worked out well for all parties, a leading Personal Insolvency expert has said.
The Donegal family have managed to hold onto their family home and still work off their debts.
Paul Carr, who heads up Market House Insolvency Services Ltd (MHIS Ltd), said he now expects other similar cases to be reached across Co Donegal.
Commenting on the agreement, Mr Carr, a Personal Insolvency Practitioner with MHIS Ltd, said that he was delighted for the family.
The PIA, which involves secured mortgage debt, is a type of agreement that is unique to Ireland.
“We are now able to show firm evidence that the new Personal Insolvency legislation is working. It is important to understand that every case is different and that they will be dealt with based on the individual circumstances involved. We are confident that the process can deliver a fair outcome for all stakeholders,” said Mr Carr.
The case involved a man with a young family who had a number of investment properties.
The agreement allows the family to stay in their family home while continuing to pay their house mortgage.
The investment properties were surrendered voluntarily to the financial institution to be sold. A significant lump sum was paid over to the financial institution in settlement.
This money was raised from the debtor’s friends and family. The remaining debt which is in excess of €170,000 will be written off.
The PIA will end one month after all aspects of the agreement are completed. At that time the person’s debts will be completely written off apart from the mortgage on his family home. The family will then be able to get on with their lives without the burden of excess debt.
MHIS Ltd provide a comprehensive Personal Insolvency service to people who are experiencing debt issues.
The company was set up by Paul Carr and Peter McDonnell who are Partners in the well-known Accountancy practice, S MacRory & Co.
Paul is based at the firm’s Letterkenny office in Market Square, while Peter is based in Tirconnaill Street in Donegal Town. They can be contacted at 074 9122188 or 074 9721908.
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