If your interest rate is 1.25%, then the monthly payments on a €200,000 mortgage over 25 years would be €777.
Provided you can make those monthly mortgage payments and you have enough money remaining to pay Reasonable Living Expenses, then a PIP should be able to deliver a PIA along these lines, as such a PIA would demonstrate a much better return to the bank than a bankruptcy. IF the bank vetoed the PIA, the PIP should be able to have the Courts enforce it.
Given the complexities of a PIA, you should really consult with a PIP to fully explore your options.
If you are unable to make monthly mortgage payments of €777, you should negotiate with the bank that you will only do a voluntary surrender in exchange for full and final settlement.
Jim Stafford