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Personal Insolvency Arrangement ‘PIA’

Personal Insolvency Arrangement ‘PIA’

A PIA is a formal agreement with all your creditors that may write off some of your unsecured debt .

A PIA is a formal agreement with all your creditors that may write off some of your debt.

  • A PIA is a formal agreement with all your creditors that may write off some of your unsecured debt (e.g. credit cards, loans and overdrafts), sale of non-core assets (resi investment, holiday home etc) and restructure any remaining secured debt (debt backed by an asset such as a mortgage) on your home and/or business premises. 
  • To achieve a PIA your PIP is required to complete detailed review and analysis of your personal financial information. Based on this information the PIP will determine if you satisfy the eligibility criteria for a PIA and will then apply for a Protective Certificate. On receipt of the Protective Certificate your PIP will draft a PIA Arrangement document. You will review and approve this document and it will then be sent to creditors to be voted upon. A majority of creditors will need to approve the Arrangement for it to be successful.
  • A PIA or DSA can only be used once in an individual’s lifetime.

Key Benefits

  • Permits restructure of the debt on your home and your SME business.
  • A PIP will arrange the PIA and negotiate with your creditors on your behalf. Creditors are not permitted to contact you on issuance of a Protective Certificate and during the lifetime of the PIA.
  • All parties are bound by the timelines set out by the Personal Insolvency Act i.e. you will receive an answer within a specified time period.
  • Under a PIA you can agree (subject to creditor consent) to repay a percentage of your overall debt that you can afford in monthly payments over a given period of time.
  • A PIA is a legally binding agreement between you and your creditors, ratified by court. This means that it cannot be changed without the consent of both parties.
  • During the PIA you entitled to a reasonable standard of living. You will not be told how you should spend this allocation, so you are still in control of your spending.
  • Once your final agreed monthly repayment is made and you have kept to the terms of the agreement, your creditors will write off your remaining unsecured debt and what is left of your secured debt will be restructured.

Call us now, in complete confidence, to set up a face-to-face meeting and begin your journey to financial freedom.

Freephone on: 1800-400-222

Email the team at: personalinsolvency@kpmg.ie 

What suits you best? View the available personal insolvency options in our PDF.

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