Term of bankruptcy and rejection of PIA?

[Kitty1]

Looking for some help as I am SO confused right now.

I've been in consultatations with a PIP over the last few months because of my debt.
I own a property with my ex partner which for many years neither of us could afford to live in since the split. We are each renting elsewhere.
I also have personal debt of circa 25k plus the outstanding mortgage is around 310k and estimated value of property is only 150k.

I have fallen into serious arrears on both.

I am working, but the payments on everything have made it a struggle to get by.

So recently the pip proposed a completely informal arrangement to my mortgage lender whereby we surrender the house and I pay a lump sum once off payment (this payment would be given to me by a family member and would be relatively small circa 10k)
So the bank came back and refused that which I kind of expected anyway. However the bank did say they would accept the voluntary surrender of the house but would only look at the shortfall AFTER they had sold the house. As this could take up to a year it is of no use to me as I will still have my other debt chasing me during this time.
So he told me the next thing I could do would be to propose the voluntary surrender of the house as part of an insolvency arrangement and still pay the lump sum.
My issue here is he said they can take months to come back with an answer and I am afraid in the meantime I'll be in trouble with my other debt, plus I cannot guarantee my lump sum offer will still be available in several months!!

So I'm thinking and wondering can I just opt for bankruptcy ?? Do I have to have a PIA refused first ? I'm worried about costs as I will have to pay this PIP 1500.
Of course I'd prefer to do a short term PIA over bankruptcy but I need things moving ASAP because I literally cannot cope with the stress anymore.
Which leads me to my next question , if I opt for bankruptcy is it 3 years they have hold on your income or 5? What dictates if it's 3 or 5?
I'm eager to get married and have children in the next few years so timing and length is very important to me.
I need the fastest option out of this for the sake of my health!

 

[Matthew Moore]

So I'm thinking and wondering can I just opt for bankruptcy ?? Do I have to have a PIA refused first ?

Your PIP will need to take steps to show that you have attempted a PIA if suitable. He needs to supply some documents stating the same. He may have an issue with that if he still has some proposals he would like you to try. You could always tell him that the offer of the lump sum has been withdrawn by your family and see if he reckons a PIA is still possible.

if I opt for bankruptcy is it 3 years they have hold on your income or 5? What dictates if it's 3 or 5?

You will normally be discharged automatically from bankruptcy in 3 years. At any point in those 3 years the Official Assignee (OA) can seek an Income Payments Agreement (IPA) if your income is above the reasonable living expenses for your circumstances. I think if you don't agree then the OA can take you to get and get an order forcing you to pay. If your income is above the threshold then it is in your best interest to get the IPA started as early as possible.

I'm eager to get married and have children in the next few years so timing and length is very important to me.
I need the fastest option out of this for the sake of my health!

If you have €10k available then maybe consider England or Scotland. I'm not very sure on the details, many on this website are much more knowledgeable but it may be a quicker fix if your circumstances allow it and you have a significant war chest to help you along over there.
Don't put marriage and kids on hold, that's all the important stuff. Who knows where they'll be in 5 years. All this other debt stuff will sort itself out.

 

[Rubyd]

Hi Pat

Can I ask you, when submitting your bankruptcy application did you also submit proof that you had applied for a PIA and had it declined. If so, in what form was this?

Thank you

 

[Matthew Moore]

Hi Pat

Can I ask you, when submitting your bankruptcy application did you also submit proof that you had applied for a PIA and had it declined. If so, in what form was this?

Thank you

Hi Rubyd

At the time I submitted my forms in draft it was an affidavit which stated that I was unsuitable for a PIA/DSA. I did not proceed past this stage and seek a court date as I had to postpone my application for personal reasons. In the meantime they have changed the rules and the PIP must supply written confirmation. I am now in a position to proceed with my application and have a meeting with a PIP next week. I'll let you know if I have any update.

 

[Rubyd]

Hi Pat

Am I correct in assuming that when you applied for bankruptcy you did so by yourself and paid the regular fee of a couple of hundred euros as opposed to thousands which is what I am being quoted by my PIP if I use him. Did you have any problem with your PIP when letting them know you were doing this? I just feel I have paid them so much in fees already that I don't want to waste any money doing so now that I know the court will accept the application from me directly.

Thank you