If the payments you make are not enough to fully repay your debt at the end of your IVA, you won`t have to pay the rest. The insolvency administrator should advise you on this. You don`t need to use a debt management company – you can find an insolvency administrator yourself on GOV.UK. A personal insolvency scheme (PIA) is a legal mechanism in Ireland for people who cannot repay their debts when due but want to avoid bankruptcy.  The agreement is one of three alternatives allowed under the Irish Personal Insolvency Act 2012. Debt Settlement Agreements (DSAs) and Debt Relief Notices (DRNs) are the other two agreements. A PIA is a legal agreement between a debtor and its creditors that is negotiated and managed by a personal insolvency administrator (PIP). A PIA generally lasts six years and must include both unsecured and secured debt. If you have approved your PIP`s PIA proposal, the PIP must call a meeting of creditors. If there is only one creditor, he can write to the PIP and indicate the approval or rejection. Creditors vote on whether or not to accept the proposed settlement.
Each vote is proportional to the amount of the debt owed to that creditor. Creditors representing 65% or more of the value of the joint debt – secured and unsecured – must vote in favour of it for the agreement to be accepted. In addition, more than 50% of your secured creditors and 50% of unsecured creditors must vote in favour. After formal approval by the courts and notification to ISI, debtors are required to make payments to PIP, which in turn distributes payments to creditors in accordance with the agreements. A PIA has a lifespan of six years. The personal insolvency agreement applies to the agreed settlement and/or redress of secured debts up to a total amount of €3 million (as well as unsecured debts) over a period of 6 years. The upper limit of €3 million can be increased in agreement with your secured creditors and the 6-year limit can be increased to 7 years in certain situations. The insolvency solutions available to you vary depending on where you live in the UK. If the proposal is accepted by your creditors, you are bound by the terms of the personal bankruptcy agreement.
Under the original legislation, if creditors reject the proposal, the certificate of protection loses its effect and the PIA procedure ends. However, the Personal Insolvency (Amendment) Act 2015 now provides for judicial review if a mortgage lender rejects the borrower`s personal bankruptcy proposal. To learn more about this process, see the ISI press release (pdf). This is a formal agreement with creditors that will cancel some unsecured debts and restructure any remaining secured debt while keeping the person in their home if possible. Under the original legislation, you could only obtain a PIA with the agreement of a certain majority of your secured and unsecured creditors – see the main elements of a PIA below. However, as mentioned above, you can now apply for judicial review if a mortgage lender rejects your personal bankruptcy filing. See «Meeting of Creditors» below for more details. In addition, a debtor must not have agreements required by law that are immediate, insolvent or have accumulated 25% or more of their total debt in the last 6 months. The apps vary depending on the solution, but all include a clear picture of your financial situation. Your request will then be processed by a court administrator or a licensed consultant. .