The Act has introduced a number of procedures that are intended to help individuals to reach agreements with creditors.
The Act has introduced procedures that help individuals to reach creditor agreements.
The Act has introduced a number of procedures that are intended to help individuals to reach agreements with the creditors that will last for a number of years with the intention of restoring an individual to solvency over a period of time.
Set out below is an overview of the procedures and some of the key features:
|Procedure||Debt Relief Notice||Debt Settlement Arrangement (“DSA”)||Personal Insolvency Arrangement (“PIA”)||Bankruptcy|
|Potential Duration||3 Years||5 years (max. 6 years)||6 years (max 7 years)||3 Years|
|Up to €20,000||No limit to unsecured debt levels. Secured creditors may not be included||Unlimited unsecured debt but a cap of €3 million unless all secured creditors waive the cap
|Who the Debtor Engages
||Personal Insolvency Practioner ("PIP")
||PIP||Official Assignee, or Trustee in Bankruptcy
|Outcome||Relieved from debt after 3 years. If there is a change in financial circumstances during the 3 year period, this relief may be reduced to no less than €10,000
||Relieved from all unsecured debts
||Relieved from all unsecured claims and also secured claims as agreed within the arrangement
All debts eliminated
Note: There are excluded and excludable creditors that may not be eliminated such as family claims, rates and LPT liabilities.
These procedures give a person an opportunity to resolve their current financial situation and move forward in a positive way. The DSA and PIA procedures require that anyone thinking about these routes to solvency to work with a Personal Insolvency Practitioner or “PIP”.
The PRS Group will provide solutions to both Debtors, via its Debtor Advisory Solutions process, & Creditors as both stand to benefit from our knowledge and we believe significant advantages can be realised as the PRS group will understand the needs and requirements of all parties.
To find out more about how we can help you achieve financial stability, contact the PRS team on email@example.com or +353 1 410 1932.