Hi
If as part of a PIA I have unsecured debt wiped by the bank and e.g. subsequently sell my PPR in 10 years time, can the bank demand the extra equity realised in the sale? Even if there had been no debt written down on that particular property?
And do PIA's generally contain clauses addressing the clawback?
Section 103 of the Personal Insolvency Act 2012 incorporates a claw back provision in all PIAs.
The claw back only affects the debt secured on the property. By way of example, if a mortgage of €300,000 on a house valued at €200,000 is reduced to €200,000, and the house is sold in 5 years time for €250,000, then the claw back is €50,000.
Section 103 of the Personal Insolvency Act 2012 incorporates a claw back provision in all PIAs.
The claw back only affects the debt secured on the property. By way of example, if a mortgage of €300,000 on a house valued at €200,000 is reduced to €200,000, and the house is sold in 5 years time for €250,000, then the claw back is €50,000.
Jim, does clawback only apply if the principal is written down on a property? If for e.g. a split mortgage is agreed, without write down, does the clawback apply?
Where it does apply, is it time limited to the 5 years, you specify in your reply?
Thanks