I set out below the different ways that people are dealing with their debt issues.
For certain people, this can be an effective way of dealing with debt, provided the debt is not on a family home.
One lesson I have learnt over the years is that it is easy to obtain judgment: The difficulty is trying to collect it. The difficulty is illustrated by one litigation solicitor acting for one of the major banks who recently told me that he has over one hundred judgments that his firm had obtained for one bank, but which the bank had yet to receive a single cent from any of them.
Some debtors are living with substantial judgments against themselves by “living a second life”, which involves their “businesses” being controlled by a spouse or by children who just pay them enough monies to live on. Such businesses are beyond the reach of creditors, and such arrangements can constitute very effective Capital Acquisitions Tax planning at the same time.
This is by far the most common way of dealing with debt. Many banks are now prepared to do informal deals. However, there are some banks who will only provide debt forgiveness via a PIA/DSA.
Personal Insolvency Arrangements
PIA’s are a great way to deal with multiple creditors, particularly if the mortgage on the family home was in arrears as at 1 January 2015, as debtors can use the “No Veto” provisions of Section 115A.
Debt Settlement Arrangements
Like PIAs, DSAs are a great way to deal with multiple creditors.
Bankruptcy is the ultimate way of dealing with unsustainable debt. In some cases, debtors can go bankrupt and still retain their family home.
Chartered Accountants Ireland are holding a Personal Insolvency Conference on 30th November 2016 at Chartered Accountants House. The cost to attend is €90, and attendance is not limited to chartered accountants. I set out below the link to the on-line booking site for the conference.:
I set out below the speakers and content for the Conference, which will discuss in greater depth the various ways that debtors may address their debts.
Jim Stafford, Friel Stafford : Latest Developments in Personal Insolvency
Chris Lehane, Official Assignee
David Hall, Irish Mortgage Holders Organisation
Ross Maguire, Senior Counsel, New Beginning