How long is the Bankruptcy or PIA approval process?

L

lolasue

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I am considering Bankruptcy or PIA soon as I believe that I am effectively insolvent. How long does the approval process take from the time you meet with a PIA to the time the Bankruptcy term commences?

How much will both options cost?
 
If you decide to go bankrupt, you could self-adjudicate within 28 days. (The hearing dates at the moment are given within 21 days of presentation of the petition.) In terms of costs, the Irish Mortgage Holders Organisation will do it for the cots of the court fees (approx. €300) whilst a private sector professional services firm could charge anything from €4,000 to €10,000 +VAT. We charge €3,965 (inclusive of VAT.)

A PIA is much more time consuming. It would usually be a minimum of 4 weeks from the first time that you met a PIP to the issuance of the Protective Certificate. We have some complex PIA's that have taken as long as 9 months to organise. Fees will depend on the complexity of the case.

Jim Stafford
 
Thanks Jim, what would make a PIA complex? I have a home property and a BTL. Combined total for Mortgages = €1.1mill Total Value of propeties = 700k. 50k unsecured debt.
 
Jim Stafford said:
A PIA is much more time consuming.
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Agree with Jim that they appear extremely complex and likely time consuming to the PIP. The ones I have seen presented to me would appear to have taken many hours to produce!! I'm assuming that the regulations and Court requirements are strict so I can't see muc h profit in them for the PIP involvement!!
 
lolasue said:
what would make a PIA complex?
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You could have complexities ranging from a couple going through a separation/divorce to a sole trader with incomplete records owing CGT, VAT, PAYE and income tax to the Revenue etc.

Your case would appear to be straightforward. Any complexity might actually just be caused by the banks, who might "veto" the proposed PIA and thereby oblige the PIP to go through a costly and complex Court Review process.

The determining factor for you would be whether you have sufficient income to pay Reasonable Living Expenses and also pay a reasonable mortgage etc.

Jim Stafford
 
Jim Stafford said:
If you decide to go bankrupt, you could self-adjudicate within 28 days.
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When I was in the process of applying to be declared bankrupt, it was necessary to meet with a PIP and have your case assessed to ascertain if an alternative to bankruptcy was available. The PIP then supplied a letter stating that a PIA/DSA was not suitable. Is this still the case?
 
Matthew Moore said:
When I was in the process of applying to be declared bankrupt, it was necessary to meet with a PIP and have your case assessed to ascertain if an alternative to bankruptcy was available. The PIP then supplied a letter stating that a PIA/DSA was not suitable. Is this still the case?
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I'm wondering why a PIA was not suitable? Does it come down to the debt being too big?
 
lolasue said:
I'm wondering why a PIA was not suitable? Does it come down to the debt being too big?
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The starting point should be the [broken link removed]. For example, in a very basic sense, if a couple and a child have RLE of c.€1650/month, an income of €3500/month and repayment obligations of €2000/month, 3500-2000=1500. This means their income available does not give an excess available to pay creditors so no deal could be done.
In my own case, our total income was below RLE.
 
Can you rent out your home fully during a PIA? I may need to move location for work during the PIA 6 year term.
 
lolasue said:
I'm wondering why a PIA was not suitable? Does it come down to the debt being too big?
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Strictly speaking, the size of the debt does not matter. What really matters are the following:
  • That you be restored to solvency after the PIA: i.e. you can pay your bills as they fall due, and that you are not obliged to live beneath the RLE's.
  • That the dividend to creditors is better than a dividend from a bankruptcy.
  • That the family home is "appropriate" to the debtor's circumstances.
lolasue said:
Can you rent out your home fully during a PIA?
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You may need the consent of the bank to rent out your family home. You would also need to inform your PIP, as the change may materially affect what you should be paying creditors each month. The PIP might be obliged to convene a creditors meeting to approve a Variation in the PIA.

Jim Stafford
 
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