Personal Insolvency – What’s Involved?
Patricia Gilhooly is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner (PB00067).
The Personal Insolvency Act, 2012 was enacted to create a framework to deal with the extensive amount of unsustainable personal debt existing the country.
The table below details some of the issues relating to the process.
Patricia Gilhooly does not act in respect of Debt Recovery Notices (DRN). These are handled by Approved Intermediaries such as MABS (www.mabs.ie) or FLAC (www.flac.ie)
5 Steps to Peace of Mind:
- Initial telephone call/email to PIP
- One to one meeting
- Application for Protective Certificate
- Create a sustainable debt payment plan
- Get formal approval of plan
Personal Insolvency – The Process
Patricia Gilhooly understands that the Personal Insolvency process is difficult, stressful and traumatic for the Debtors involved.
I will aim to make the process as simple and understandable as possible.
In essence the process can be broken down into the following stages:
- Debtor realises that they cannot meet their day to day cash obligations.
- Debtor attempts to negotiate with creditors without success.
- Debtor contacts a Personal Insolvency Practitioner (PIP).
- PIP reviews the financial status of the debtor and considers options.
- If both PIP and Debtor believe that a viable plan can be devised then an engagement letter is agreed and signed.
- PIP and Debtor ensure that financial disclosures match those required in Prescribed Financial Statement (PFS).
- PIP applies for Protective Certificate and if successful notifies all creditors
- Notified creditors cannot contact Debtor for 70 day period of Protective Certificate.
- Within 70 days PIP develops workable arrangement to meet legislation terms.
- Debtor and majority (65%/50% as appropriate) of creditors must approve arrangement before presenting to Court for approval
- If approved Debtor complies with terms of arrangement for the duration of the arrangement and forwards appropriate monies to the PIP for distribution to the creditors
- At the end of the term of the arrangement the debts will have been restructured/written off/paid down in accordance with the terms of the arrangement.