Key Post Debt settlement arrangements for unsecured debt > €20,000; <€3m

Brendan Burgess

Brendan Burgess

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This seems well designed.

It leaves mortgages out of the equation.

But if you have other unsecured debt, you can agree to pay as much as possible over 6 years and then the balance would be written off.

65% of creditors must agree to the proposal and, in practice, they probably will.

If 65% agree, it's binding on all the creditors.
 
[FONT=&quot]Debt Settlement Arrangements
[/FONT][FONT=&quot]The Bill (in Part 4) provides for a system of Debt Settlement Arrangements (DSA) between a debtor and two or more creditors to repay an amount of unsecured (consumer type) debt over a set period. The DSA would assist persons who have an income and assets and debts that exceed the threshold (€20,000) for a Debt Relief Certificate. With the required assistance of a personal insolvency trustee, the debtor may apply to the Insolvency Service for a Protective Certificate in respect of preparation of a DSA. If granted, the Certificate would provide for a standstill period during which creditors may not take action against the debtor. The trustee would then put forward a DSA to creditors for agreement. If approved, the Insolvency Service would provide formal registration of the DSA. At the satisfactory conclusion of the DSA all debts covered by it would be discharged. The Insolvency Service has no role in the negotiation and agreement of a DSA. (Similar systems operate in the UK, Northern Ireland and Australia).[/FONT]
[FONT=&quot]
General conditions for application for a DSA
· the debtor must normally be resident in the State or have a close connection.
· only one application for a DSA is permitted in a ten year period.
· a Protective Certificate, if granted, will provide a standstill period of 30 working days to allow for a creditors meeting to consider the DSA.
· a DSA will normally runs for 5 years.
· the DSA requires the approval of 65% in value of qualifying creditors.
· a DSA if approved, it is binding on all creditors.[/FONT]
[FONT=&quot]When a DSA has been agreed with creditors
[/FONT][FONT=&quot]· the DSA will come into effect on registration by the Insolvency Service.
· the DSA may be varied or terminated.
· there may be an application for adjudication in bankruptcy on ending, termination or failure of the DSA.
· there are grounds for challenge by creditors to a DSA and a role for the courts on application to have a DSA annulled.[/FONT]
 
Brendan,

Who do you need to contact .. you mention a Trustee.. who would that be? Any information on this would be great.

Thanks
 
emma09 said:
Brendan,

Who do you need to contact .. you mention a Trustee.. who would that be? Any information on this would be great.

Thanks
Click to expand...

Emma, the not yet, but to be created insolvency service, will when the insolvency bill is eventually passed, confirm and approve a number of individuals to be Personal Insolvency Practitioners.
The problem is nobody knows the criteria for qualification and actually nothing has been set up yet or ideas floated.

As an insolvency solicitor with 20 years experience with these types of settlements in the UK and with. Dublin based business I will probably apply. I am surely better qualified than mortgage brokers who think they may give it a go, to replace other revenue streams

Steve
Www.debtoptions.ie
 
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