10 Steps to Being Debt-Free under the Personal Insolvency Act 2012
1. Debtor realises they are unable to pay their debts in full as they fall due
2. Debtor contacts a PIP if they think they may qualify for a DSA or PIA.
3. Debtor meets with the PIP where their financial circumstances are assessed and options are discussed.
4. If the PIP is satisfied the debtor is suitable for the scheme, they sign a formal letter of engagement and begin procedures.
5. The PIP obtains supporting information for Prescribed Financial Statement from the debtor (details of all income, expenditure, assets, debts and other liabilities, creditors and any guarantees given by debtor in respect of debt of another person).
6. The PIP applies for Protective Certificate. If successful, this means creditors may not take any action against the debtor for a period of 70 days.
7. During this 70 day period, the PIP formulates a workable and affordable arrangement which involves a monthly payment by the debtor to the PIP who will distribute it pro-rata among the creditors. The debtor no longer directly deals with his creditors.
8. The debtor and 65% of creditors must agree to this arrangement before it is presented for court approval.
9. Following approval, debtor’s details are placed on the public register.
10. If the debtor successfully meets the obligations of the arrangement by making the monthly payment and participating in annual reviews for a period of 5 years (can be extended to 6 years), the remaining amount is discharged and the debtor is now debt-free and solvent.
Got Debt You Can’t Handle?
- Complete Guidance, Assistance and Advice
- Qualified Professionals
- Personal Insolvency Practitioners
- Irish And UK Solutions
- Negotiations with Banks on Mortgage Debt
- Legal Assistance if required
© Copyright 2016. Anthony Joyce is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner.