Where do I start?
Your next step is to gather all your financial information together, including details of all your assets, liabilities, income and expenditure. Once that’s done, just call us or click the “take the next step” button and follow the instructions.
Will I have any further contact with my creditors?
Your Personal Insolvency Practitioner will conduct all future interaction with creditors following the introduction of the Protective Certificate. If, however, the process is not approved then you will need to start dealing with your creditors once again.
Can I get the mortgage debt on my principal private residence reduced?
The aim of the act is to restructure an insolvent debtor’s affairs so that he/she will be cashflow solvent following the arrangement being agreed and will continue to be cashflow solvent in 5 years’ time. If the debtor and his/her family are living within their means (reasonable living expenditure) and the property is practical and justifiable based on the size and needs of his/her family, the Personal Insolvency Practitioner will review the debtors’ outgoings and may propose that an element of the debt be written off if not to do so could impact on the debtors’ ability to service their obligations as they fall due.
Who determines what reasonable living expenses are?
The Insolvency Service is a body set up to ensure that the Personal Insolvency Legislation is administered in a fair and structured manner. In due course the Service will provide guidelines on what are considered reasonable living expenses, with criteria such as children and medical conditions being taken into account. A minimum income standard calculator is available online at www.misc.ie and should be a useful guideline for you.
How much is this going to cost me?
The costs for setting up and supervising the arrangements will ultimately be borne by the creditors, as the Personal Insolvency Practitioner’s (PIP) fees will be deducted from the debtor’s monthly payment. The debtor transfers funds to the PIP on a monthly basis, the PIP deducts pre-agreed fees before dispersing the balance on a pro-rata basis to all creditors.
Can I apply to enter into a PIA or DSA scheme more than once?
No, each scheme is a once-in-a-lifetime arrangement only.
If I enter into an arrangement will it affect my future credit rating?
Yes. If you enter into an arrangement then the details will be indefinitely held on a public register. However, you will be rebuilding your credit rating once you enter into an arrangement. Then, should your repayments be timely, consistent and in line with the terms of the arrangement over the period of the arrangement, this should enhance your credit rating.
About This FAQ
These answers are for guideline purposes only and answers specific to your case will be provided during your consultation with a specialist advisor from Aj Debt Solutions Ireland
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