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Personal Insolvency Arrangment (PIA)

The qualifying conditions to apply for a Personal Insolvency Arrangement (PIA) are:

  • The debtor must be insolvent
  • The debtor is resident or carried on a business in the state within a year of applying for a PIA
  • The debtor has at least one secured debt over €20,000 and up to €3m (can be extended with consent of secured debtors)
  • The debtor can have an unlimited amount of unsecured Debts
  • The arrangement can be entered into with a view to keeping the Family Home
  • The debtor has completed a Proscribed Financial Statement and considered other options such as a Debt Settlement Arrangement to make the themselves solvent
  • The debtor has exhausted all other avenues with secured creditors in trying to resolve the insolvency issues
  • If entered into, the arrangement can last a maximum of six years (with a possible 12 month extension) with a possibility of a claw back[1] if personal circumstances change with the debtor during the six year period.

What happens to a Principle Private Residence in a PIA?

When drawing up a PIA it cannot contain a requirement for the debtor to sell the principle private residence unless:

  • The debtor agrees to the sale or
  • The personal insolvency practitioner (PIP) concludes that the costs of remaining in the principle private residence would be too big relative to the debtors income and dependents needs
Full details are explained in our Insolvency Guide which is free to download here

[1] A claw back is limited to a maximum of 50% of any win fall gain or 50% of any increase in income during the time of the PIA. See section 7.m below.


Debt Settlement Arrangement (DSA)

Qualifying conditions for a Debt Settlement Arrangement (DSA)

In order for a debtor to be able to apply for a DSA they must fulfil the following conditions:

  • The debtor has two or more creditors owing to them unsecured debts of more than €20,000
  • The debtor is able to pay any secured debt such as a mortgage
  • The debtor is normally resident in the state

The DSA will usually apply to people who have income and assets but just not enough! They are not able to service their unsecured debts from their current income.

They can seek protection from their creditors while at the same time protecting their secured assets such as their family home.

Full details are explained in our Insolvency Guide which is free to download here