My buddy has been struggling with mortgage debt for several years as he was self employed with 2 BOI mortgages (1 PPR and 1 BTL) but couldn't keep up his repayments due to the recession. He tried to keep everything going as long as he could and to continuously make partial repayments on both properties but to little avail despite horrendous stress and even Depression. Eventually the BTL was sold by the bank with a €100k shortfall which he's not paying towards and he may now be coming to the point of insolvency and losing his PPR.
However he has recently got a decent permanent job (€32k p.a.) and has been making the full repayments on the PPR but still wouldn't be able to repay the €100K. I'm going with him to meet a PIP this week but he thinks its to discuss Bankruptcy. He's divorced and lives alone so the PPR doesn't count as a Family Home so he could lose it?
If he's made Bankrupt the sale of the PPR will only cover its mortgage and fees and there'll be no 'sale' surplus for the BTL €100k or other unsecured debt (Credit Union €10k, Family €25k). He would then have an 'income' surplus of €400 p.m. approx. (lower room renting cost v current PPR mortgage repayments) available to repay debts but wouldn't that be shared between all the unsecured Debtors or does the BTL €100k get preference? If he was bankrupt I presume he'd have to still repay that surplus income over his Reasonable Living Expenses for 3 years. If so the BTL €100k might only get €10k but my buddy would've lost his home.
Is there any chance BOI would write down the €100k and take €10k upfront but leave him with his home via a PIA or alternatively does a 'no-veto' PIA apply if its a PPR but not a Family Home?
However he has recently got a decent permanent job (€32k p.a.) and has been making the full repayments on the PPR but still wouldn't be able to repay the €100K. I'm going with him to meet a PIP this week but he thinks its to discuss Bankruptcy. He's divorced and lives alone so the PPR doesn't count as a Family Home so he could lose it?
If he's made Bankrupt the sale of the PPR will only cover its mortgage and fees and there'll be no 'sale' surplus for the BTL €100k or other unsecured debt (Credit Union €10k, Family €25k). He would then have an 'income' surplus of €400 p.m. approx. (lower room renting cost v current PPR mortgage repayments) available to repay debts but wouldn't that be shared between all the unsecured Debtors or does the BTL €100k get preference? If he was bankrupt I presume he'd have to still repay that surplus income over his Reasonable Living Expenses for 3 years. If so the BTL €100k might only get €10k but my buddy would've lost his home.
Is there any chance BOI would write down the €100k and take €10k upfront but leave him with his home via a PIA or alternatively does a 'no-veto' PIA apply if its a PPR but not a Family Home?