This week, Colm Arthur of Arthur Insolvency Services Limited talks to Topic about the process of a Personal Insolvency Arrangement as well as the state-funded Abhaile scheme, for people whose home is in mortgage arrears.
Personal Insolvency Arrangement (PIA)
Colm is authorised by the Insolvency Services of Ireland to carry out practice as a Personal Insolvency Practitioner (PIP). A Personal Insolvency Arrangement (PIA) is a formal debt solution that deals with your unaffordable mortgage and other debt repayments. A PIA can include both secured debts (such as mortgages) and unsecured debts (such as credit cards and personal loans and Revenue debt). Depending on the details of the case, a PIA can last from 1 month to 6 years, during which time the creditors named in your PIA cannot take any legal or debt collection action against you.
A PIA allows you to settle and or restructure your debts over a period of your arrangement to make it more affordable and your debts are reduced to allow you to repay what you can afford, while offering legal protection from your creditors.
“Most of our work would involve PIAs, to restructure the mortgage and protect the family home,” said Colm. “We also act to protect family farms and businesses as part of a Personal Insolvency Arrangement which can also deal with unsecured debt. In some cases the mortgage can be up to date but there may be difficulty with other creditors like Revenue or trade creditors . We look at the full portfolio of debt and restructure or write down unsustainable debt to return the individual to solvency. When a PIA is approved by the Court it replaces any previous contracts.”
Abhaile Scheme
The State-funded Abh-aile Scheme provides access for those in mortgage arrears to professional impartial Financial and legal advice from experts in insolvency. The aim of Abhaile is to help mortgage holders in arrears to find the best debt solutions and keep them. wherever possible, in their own homes. “It is important to point out that getting advice does not commit you to the insolvency process unless you decide that’s the best option for you,” Colm concluded.
For more information, contact Arthur Insolvency Services Limited on 044-9341860 or see capip.ie
