2. Provision for court review
4. Qualifying debts
5. Secured and Unsecured debts
6. Excluded and Excludable debts
A Personal Insolvency Arrangement (PIA) is one of 3 debt resolution mechanisms introduced by the Personal Insolvency Act 2012 for people who cannot go to pay their particular debts. These mechanisms offer different results to people in different situations. The Personal Insolvency Arrangement applies to the agreed agreement and/ or restructuring of secured debts up to an aggregate of € 3 million (as well as Unsecured debts) throughout over 6 times. The cap of€ 3 million can be increased by agreement with your secured creditors and the limit of 6 times can increase to 7 times in some situations. The Insolvency Service of Ireland (ISI) has published detailed information about PIAs, including possible scripts, FAQs, and a guidebook. It also provides information on PIAs, including a short companion to PIAs (pdf), on its website back on track. ie, for people who are floundering with debt.
Provision for court review
Where a mortgage lender rejects the borrower’s offer for a PIA, an operation can be made for a court review of that rejection. Before 25 June 2021, this review option only applied to mortgages that were in arrears on 1 January 2015, or to mortgages that were in arrears before that and where the borrower entered into an indispensable prepayment arrangement.
As part of Abhaile, the public Mortgage Arrears Resolution Service, an aid and advice scheme for people in serious mortgage arrears covers free legal representation for eligible borrowers in seeking such a court review. The court will review the operation, including any expostulations made by creditors.
Personal Insolvency Arrangements give for the agreed agreement and/ or restructuring of debts in the case of people who have secured debts up to an aggregate of €3 million (as well as any Unsecured debts) and have no prospect of being suitable to pay off their debts in the coming 5 times. You can only have a mileage of a PIA formerly in your continuance. You cannot get a PIA if you’re involved in one of the other debt resolution processes introduced by the Act, or in the ruin process, or if you have completed one of these processes within the last 5 times (3 times for a Debt Relief Notice).
Under the original legislation, you could only get a PIA by agreement of a specified maturity of your secured and Unsecured creditors – see Main rudiments of a PIA below. See the ‘Creditors meeting’ below for further detail. You must be housed in the State, or differently have been living or had a place of business in the State within the time before you make your operation.
If you have no secured debts you should apply for a Debt Agreement Arrangement or a Debt Relief Notice. In general, the aggregate of your debt to your secured creditors must add up to lower than €3 million. still, this cap can be waived if all of your secured creditors agree in jotting. At least three- diggings (75) of your debts must have been erected up at least 6 months before you apply for a PIA – in other words, you can’t apply for a PIA if any further than 25 of your debts were incurred in the last 6 months.
Secured and Unsecured debts
A Personal Insolvency Arrangement is only for people who have secured debts (though it can include Unsecured debts – see below) so it’s important to know whether your debts are secured or not. A secured debt is a loan on which property or goods are available as security against remittent. Some examples of Unsecured debts are mileage bill arrears (gas, electricity, etc.); credit card debt; bank overdrafts; credit union loans. still, if they’re rolled up into your mortgage, they come with secured loans.
Excluded and Excludable debts The Personal Insolvency Act 2012 specifies certain types of debt that cannot be written off by the debt agreement procedures that it introduced, which include the Personal Insolvency Arrangement. These are called excluded debts. This means that they can be covered by the PIA if the creditor is asked and agrees to let them be included – in which case they come with permitted debts – debts that the creditor permits to be covered. However, the creditor is also supposed to have acceded to the debts being included, If the creditor is asked and doesn’t respond. utmost types of excludable debts are those owed to the State.