As in all walks of life there are various degrees of insolvency problems which people face and all are very difficult from the position of the person trying to get through the problems. Some debt levels may seem very small to one group of people in society while they are insurmountable to others.
It is now possible to deal with all debts in a manner which is appropriate to the scale of the debt while relieving the person with the debt of the enormous problems it is causing them both financially and personally.
The Personal Insolvency legislation sets out three additional types of arrangements which are available to solve personal insolvency issues in addition to bankruptcy.
- A Debt Relief Certificate (DRC)
Relief for insolvent people with unsecured debts up to €20,000 with low disposable income and few assets
- A Debt Settlement Arrangement (DSA)
Relief for insolvent people with unsecured debts in excess of €20,000
- A Personal Insolvency Arrangement (PIA)
Relief for insolvent people with secured and unsecured debts but who wish to protect their family home
All three processes must be approved by the circuit court (high court in cases involving amounts in excess of €2.5m). It is the Insolvency Service which applies to the court to have the certificate or arrangement approved.
It is assumed that the court process will not be an expensive one since the court is simply granting what the Insolvency Service has approved.
If applying for a DSA or PIA you must first engage a personal insolvency practitioner or PIP to assist you and apply to the Insolvency Service of Ireland ISI.