Personal Restructuring Mechanisms

Personal Restructuring Mechanisms

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

Debt Levels
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
Unlimited
Who the Debtor Engages
Authorised Intermediary
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.

Contact us

To find out more about how we can help you achieve financial stability, contact the PRS team on personalrestructuring@kpmg.ie or +353 1 410 1932.

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