Neo Financial Solutions

DSA and PIA Insolvency Scenarios

Vulture Funds want to Negotiate with you about your Mortgage and Debts

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Tanager, which is part of a large US private equity fund, is offering discounts of up to 40pc on the outstanding debt if the tracker mortgage holders can get them financed somewhere else.

This is now expected to be followed by other vulture funds offering to sell mortgages to homeowners at a discount.

This means that if someone has the ability to get funds together to pay off a mortgage with a Vulture Fund they can get up to 40% discount on the loan balance.

It is time to look out for that white knight (in other words a family member or very good friend) because the dysfunctional banking system in Ireland will not allow such borrowings to happen even at 40% discount.

It is just a shame that we had to go through 10 years of the systematic destruction of the Irish economy and people by the institutions for the state to bring us to the end point which should have been the beginning! That is. debts should have been written off directly for the borrower instead of being sold off to funds which have bulged their pockets with profits generated out of Irish austerity. In this the funds are in no way to blame as they were just doing what they do and they make no bones about it! On the other hand banks which were bailed out by Irish people and NAMA funded by Irish people sold everyone down the river looking after only a very few insider interests and as a consequence destroyed a great many people in Ireland. The political and professional elites in Ireland have so much to answer for but continue to deny their economic treason while basking in the new found recovery funded by the financial rape of Ireland Inc. the very entity they were ment to protect!

Ironically, the same people are still in charge and embarked recently on a different attack on a citizen threatening their elite status ..    Garda Maurice McCabe


Everybody who has or had a mortgage over the past 10 years needs to check the following:

  • Have you had a mortgage over the past 10 years? 
  • Either Home Loan or Buy To Let
  • Were/are you on a tracker?
  • Did the tracker rate go up? 
  • Were you moved off a tracker to a fixed rate?
  • Did your fixed rate expire and you were moved on to a new rate?
  • Were you offered a tracker rate?

If the answer to any of these questions is yes and you have not been contacted by your lender than you need to get some advice about possible compensation. Either call us 01 437 0908, email us at paul@neofinancial.ie or contact your own adviser to find out more.

We have an unprecedented theft admitted to yesterday by the Central Bank (CB) committed by Banks on the ordinary people of the country some of whom have lost their homes, been declared bankrupt and suffered family breakups because of it. The CB said yesterday that there is at lease 8,200 loans affected so we can be sure that figure will actually be 15,000+ given the CB history on getting things right! The number of cases already admitted by AIB, PTSB, Ulster Bank and BOI amounts to is over 10,000 just from these 4  major banks still operating in Ireland!

What is  worrying is that it is not being made clear what is actually the issue and who exactly is effected. So it is very likely that people who are affected are not being contacted by the banks and are not even aware they could make some claim! It is also very clear that not only home mortgages are affected here but Buy to Lets are also an issue.

Even more worrying is that it is the banks and their old auditing palls like KPMG, Deloitte and E&Y (former Anglo Irish Bank Auditors) are doing the investigating (the poacher keeping the estate safe from poachers!). So lets be clear the odds of the banks and their palls admitting to all of the cases are ZERO.

Banks are going to have to do a number of things for people who are effected:

  • Apply the correct low rate of interest
  • Repay any over charge (and not just reduce the loan amount but give you a cheque!)
  • If you have sold your property or worse still had to declare bankruptcy or entered into an insolvency arrangement you will ahve to be compensated for your losses.

Remember even if your loan was sold to a vulture fund you are still entitled to the proper tracker rate and compensation as if the loan was still owned by your original lender.

The Central Bank probe includes AIB (including EBS and Haven), Bank of Ireland, Permanent TSB, Ulster Bank, KBC, ACC, Bank of Scotland, Danske Bank, IBRC, Dilosk, Leeds Building Society, Pepper Asset Servicing, Springboard, Start Mortgages and Stepstone.

 


Sale of Family Home to cover Personal Guarantees STOPPED!

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Sale of Family Home to cover Personal Guarantees STOPPED!

In a recent court judgement, a financial institution was denied the right to seek the sale of a family home in order to pay off loans secured by a personal guarantee (PG).

The borrower had given a PG to a Credit Union for a property development loan which then went bad. The development was sold and the credit union then registered a judgement against the borrower for the balance of the loan outstanding. The credit union then registered a judgement mortgage against his family home. The credit union then requested the court to give it permission to force the sale of the borrower’s family home to liquidate the borrower’s equity in the family home in order to repay some of the outstanding debts.

The borrower’s wife did not give any guarantee or was not party to any of the loans in question.

The court held that though the credit union was entitled to get the judgement mortgage it was not entitled to have the home sold as it would leave the borrower’s wife in a position that she would suffer significantly and possibly be left homeless. Since she had no part in the loan or never gave any consent to the family home being used as security for any loan the home could not be sold.

Judge Gerard Hogan, giving the three judge court’s unanimous judgment, found the home could not be sold because the wife of the borrower was not parity to the relevant loans which gave rise to the judgments and never formally consented to them.

This judgement is a very significant judgement for those who find themselves being pursued by aggressive banks looking for PG’s to be honoured. It means that the bank is unable to force the sale of a family home if their spouse has not been party to the loan or has not given a PG.

This can also have some significant effects on anybody seeking to go bankrupt in order to get rid of all debts.

 

For further information

Paul Carroll

paul@neofinancial.ie

01 437 0908


A very significant Judgement stopping Mars Capital and as a result, other so called Vulture Funds from continuing repossession cases started by the original owners of loans (in this particular case Irish Nationwide BS before the loans were sold).

I am amazed on how silent the media has been on this matter since it is so significant for so many people who were potentially facing homelessness.

The Judgement

The judge has ruled that Mars Capital is not allowed to substitute itself for the original lender in repossession cases started before 14th October 2014. In other words, if a repossession case was started prior to 14th October 2014 for a loan that is now owned by Mars Capital or any other Vulture Fund it is likely that that case will be rejected by the court and will have to be started all over again at circuit court level.

Judge McDermott held that the court could not be satisfied that all of the information contained in the files could be considered to be correct and that each case will have to be heard separately. The full judgement is contained here for anyone with the interest and time to read it.

So what does this mean?

  • For The Vulture Funds

For the Vulture funds it means that for every case which they wish to take repossession proceedings against they have to start that process all over again if the proceedings were started by the previous lender. In this case alone there are 583 cases which have been stopped and will have to be restarted. This going to be a very costly and time consuming process for Mars and the other funds who will find themselves in similar positions.

  • For The Borrower

For the borrower it will create some opportunities which did not seem likely prior to the judgement. Firstly, it will mean that anyone under threat of losing their home will now have extra time before this happens will be at least 12 months. Secondly, if the borrower is inclined to negotiate with the new lender the lender may be more inclined to either write down some of the debt and/or provide the borrower with a cash incentive to leave the property voluntarily! This will save both time and legal cost for the new lender.

What next?

If you or anyone you know is facing repossession of a property by a vulture fund they should immediately confirm when the proceedings were started and by whom. If they were started by the original lender, then the case will have to be stopped. DO NOT rely on the lender to inform you of this.

Once you have established your case needs to restarted you should contact the vulture fund to discuss a renegotiation. Remember the funds are facing much higher legal fees and much longer time to get their money back. Both of which they are always keen to avoid!

If there is anything we can help with or you want more information, feel free to call us on 01 437 0908 or email me directly on paul.carroll@neofinancialsolutions.com


Bankruptcy a real and quick solution

This week again I met a business man who lost everything he owned during the crash and has now clawed his way back to being able to provide for himself and family. It has been a long hard struggle having lost all of his assets including the family home. He has been left with hundreds of ‘000 of debts including banks, revenue and other creditors and no way to ever pay them off.

The banks, revenue and other creditors left him alone and he was lucky enough to get a job and the chance of a fresh start. Then the bank and revenue came knocking looking for their pound of flesh! He yielded to their pressure and has been paying €1,000 per month to them and has begun a downward spiral again giving himself or his young family no chance of recovery….. until he picked up the phone to call us.

There is no reason for this man not to go bankrupt, have it all over in 60 days, be debt free and keep all of his income to rebuild his life and his families security. He had already lost his family home, he had no chance ever to clear the large debts he had and by trying to pay something off them he was only adding to his hardship. The €1,000 per month he was paying to his creditors was the difference of his family getting back on its feet and not. It meant nothing to the creditors financially.

Bankruptcy is about recovery for past financial mistakes. In Ireland the financial mistakes were not necessarily made by those who have to go bankrupt (I have better personal knowledge of this fact) nor has bankruptcy been necessary for those who did make the financial mistakes. However, modern bankruptcy rules are here now and anyone who needs to use the new rules should do so. There is no shame in that. In fact it would be a shame not too!

So back to our new client (yes he is now a client!).  He has stopped paying his creditors, gathered the funds together to go bankrupt and engaged us all in a matter of days from contacting me by phone last week. When I talk to him I can feel the relief radiating from him already! He has taken control back and the future is bright again!

Bankruptcy is a positive not a negative!

 

Paul C Carroll

NEO Financial Solutions

+353 1 437 0908

 


The Irish Bankruptcy laws have finally been brought into line with a modern market economy allowing people who struggle with debt the freedom to become debt free and to have a new beginning and fresh start financially.
Irish bankruptcy law changes such as the one year term, three year payment orders, abolishing of the statutory sitting and re-vesting of the family home (if wanted) to a bankrupt after a three year period are all that we at NEO Financial Solutions have been lobbying for since 2012 and successfully achieved with the recent introduction of the Bankruptcy (Amendment) Act 2015.
The Bankruptcy (Amendment) Act 2015 also introduces some very significant penalties for anyone who tries to use bankruptcy to hide assets, evade creditors or generally misuse the process for anything other then for what it is intended for.
The Irish Bankruptcy law changes are retrospective so will apply to all who are already in bankruptcy with some minor anomalies depending on what date someone was declared bankrupt.


THE NEW RULES FOR ONE YEAR IRISH BANKRUPTCY EXPLAINED

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THE NEW BANKRUPTCY LEGISLATION WAS PASSED AND BELOW IS AN OUTLINE OF THE CHANGES

  • One (1) year bankruptcy period will apply from now on.
  • Anyone declared bankrupt post July 2015 their bankruptcy period is over 1 year from the date they were declared bankrupt*
  • Anyone declared bankrupt pre July 2015 can be immediately discharged or be discharged up to June 2016 depending on the date of the bankruptcy*
  • The second court hearing of the Statutory Sitting has been removed therefore you will only have to go to court on one occasion to be declared bankrupt.
  • If a family home has not been sold after 3 years of the date of bankruptcy it will be transferred back into the bankrupts name without any cost to the bankrupt (it is important to note any debt attaching to the home will remain)

*Assuming the new law is commenced prior to the end of January 2016

PLEASE PICK UP THE PHONE AND GIVE US A CALL IF YOU HAVE ANY QUESTIONS OR WOULD LIKE TO DISCUSS YOUR CASE

01 437 0908


This is a great day for the ordinary person who has struggled for so long without any assistance 1 year bankruptcy is here!

Legislation cutting bankruptcy term to one year imminent – Kenny

Government accepts need to reduce term from three years to one year, says Taoiseach

Read the full story here

So what will this mean?

Bankruptcy Term –  Once the 1 year term is introduced a person will be automatically discharged after only 1 (ONE) year of bankruptcy.

If you have already declared bankruptcy – The draft law states that if you have already been bankrupt for 1 year and 3 months you will be automatically discharged!

Family Home – If the family home has not been sold within 3 years of the bankruptcy the ownership will automatically revert back the bankrupt so no need to acquire the assignees interest and pay the €5k+ ransom being demanded.

Payment Orders – We would expect that payment orders will also be restricted to a maximum of 3 years from the date of the bankruptcy.

More news will follow


1 Year Bankruptcy is Finally Here

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This is a great day for the ordinary person who has struggled for so long without any assistance 1 year bankruptcy is here!

Legislation cutting bankruptcy term to one year imminent – Kenny

Government accepts need to reduce term from three years to one year, says Taoiseach

Read the full story here

So what will this mean?

Bankruptcy Term –  Once the 1 year term is introduced a person will be automatically discharged after only 1 (ONE) year of bankruptcy.

If you have already declared bankruptcy – The draft law states that if you have already been bankrupt for 1 year and 3 months you will be automatically discharged!

Family Home – If the family home has not been sold within 3 years of the bankruptcy the ownership will automatically revert back the bankrupt so no need to acquire the assignees interest and pay the €5k+ ransom being demanded.

Payment Orders – We would expect that payment orders will also be restricted to a maximum of 3 years from the date of the bankruptcy.

More news will follow


Submission on 1 year bankruptcy proposal

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Our submission on 1 year bankruptcy has seen the Finance Committee recommend a reduction in bankruptcy to 1 Year!

Hopeful the government government respond to its own committee and introduce the reduction and do it soon. 1 Year bankruptcy will assist with debt burden and mortgage arrears.

Submission on 1 Year Bankruptcy Term