Case study Mortgage arrears and large debts

[Matthew Moore]

pat2.

{Certain homelessness in the very near future} I just cant see it that fast.

I use pip Ryan Stewart 0858888531. I am going to ask him have a look at this thread.
If YOU want phone him to-morrow for an opinion(say you spoke with me).

This whole Insolvency thing is still bedding down hence the (iffy) views and no-one wanting to ill advise you.
For what it is worth , I have found Ryan A1.

Gerry, I'll give him a bell tomorrow thanks.
Got a second opinion from another PIP today and he also believes that I'm unsuitable for a DSA or PIA. His reasoning was that the proposal to the creditors would be to offer them zero funds. He reckons they'd sooner take their chances with bankruptcy as the OA may be more capable of getting something from me. His also said I would need some excess income to fund the process. He also believes Revenue are unlikely to agree to be included given my age and the strong possibility of being able to recoup some of the debt if they stay out of the process.

 

[Brendan Burgess]

Here is the ISI case study of a PIA which lasts only 4 months.

Insolvency Service Case Study shows a PIA lasting only 4 months

Given that the unsecured creditors will avail of the €9,000 as a lump-sum settlement for John’s unsecured debts, and considering John has no repayment capacity for the remaining unsecured debt, this PIA is a short-term arrangement, which will last four months. The PIA will be terminated once the land is sold and all parties have been paid.

Of course, the circumstances are different, but it's terribly important to realise that a PIA or a DSA does not have to be for 6 years or 5 years.

 

[Matthew Moore]

Here is the ISI case study of a PIA which lasts only 4 months.

Insolvency Service Case Study shows a PIA lasting only 4 months



Of course, the circumstances are different, but it's terribly important to realise that a PIA or a DSA does not have to be for 6 years or 5 years.

I've seen this example before and also agree that it's mad. I know a PIA/DSA is flexible and open for negotiation on length and terms but why would they even consider letting him off the hook after 4 months??
If I was a creditor I would certainly be voting against this, he could have a promotion in the pipeline, he works in an industry that is doing relatively well. Personally I would accept the proposal only if he went interest only and any excess income over 6 years was paid to unsecured creditors. They are after all allowing him to avoid bankruptcy. If he doesn't accept let him go bankrupt and they've 3 years to stick a 5 year income order on him.

Unlike him I don't have 10k to bring them to the table so even if I could get them that far they would be spending a lot of man hours with creditor meetings, engaging with PIP's, paperwork etc for 0 return. Crucially, his income is enough to meet mortgage expenses and a reasonable standard of living. If the shoe was on the other foot and I was a creditor looking at my situation I'd be saying if you're so broke go bankrupt. There's no advantage for them to seek anything else.

 

[Bronte]

I've seen this example before and also agree that it's mad. I know a PIA/DSA is flexible and open for negotiation on length and terms but why would they even consider letting him off the hook after 4 months??
If I was a creditor I would certainly be voting against this,.

And that's exactly the way banks are going to look at it. If they left one person off the hook after 4 months you can be sure there would be even more applications.

 

[Matthew Moore]

Got a second opinion from another PIP today and he also believes that I'm unsuitable for a DSA or PIA. His reasoning was that the proposal to the creditors would be to offer them zero funds. He reckons they'd sooner take their chances with bankruptcy as the OA may be more capable of getting something from me. His also said I would need some excess income to fund the process. He also believes Revenue are unlikely to agree to be included given my age and the strong possibility of being able to recoup some of the debt if they stay out of the process.

http://www.askaboutmoney.com/showthread.php?t=184346

I think that's a prime example of why when faced with no return that creditors would rather see debtors go the bankruptcy route. The creditor has nothing to lose and the OA has much more power than a PIP.