Personal Insolvency and Bankruptcy
Facing insolvency or bankruptcy can be overwhelming. That’s why we offer comprehensive services designed to guide you through every step of the process.
Specialist personal insolvency and bankruptcy services
In 2012, the Irish government implemented crucial legislation aimed at addressing the personal debt crisis stemming from the economic downturn of 2007/2008.
Xeinadin has been at the forefront of assisting numerous clients in navigating the personal insolvency process, helping them settle their debts and secure their financial future. Our dedicated team of experts has provided tailored solutions to hundreds of individuals, enabling them to retain their family homes and achieve sustainable financial stability.
Why Xeinadin?
01
Experienced Professionals
Our team comprises seasoned insolvency experts who are well-versed in the intricacies of personal debt resolution. We bring years of experience to the table, ensuring that you receive the highest standard of service and support.
02
Tailored Solutions
We recognise that each client’s situation is unique. Whether you’re dealing with secured or unsecured debt, our team will work closely with you to develop a personalised strategy that addresses your specific financial challenges.
03
Holistic Approach
From informal negotiations with creditors to formal insolvency arrangements, we offer a comprehensive range of services to meet your needs. Whether you require a Personal Insolvency Arrangement (PIA), a Debt Settlement Arrangement (DSA), or assistance with bankruptcy proceedings, we’re here to help.
04
Protecting Your Assets
We understand the importance of safeguarding your family home and other essential assets. Our team will explore every avenue to protect your interests and ensure a favourable outcome for you and your loved ones.
05
Guidance and Support
Navigating the insolvency process can be complex, but you don’t have to do it alone. At Xeinadin, we’ll be with you every step of the way, providing expert guidance and support to help you achieve financial freedom.
Understanding personal insolvency
Personal Insolvency can offer a lifeline to individuals struggling with overwhelming debt. Whether you’re facing secured or unsecured debt, a Personal Insolvency Arrangement (PIA) or Debt Settlement Arrangement (DSA) may provide the relief you need. Here’s how it works:
- PIA (Personal Insolvency Arrangement)
A PIA is suitable for individuals with both secured and unsecured debt. This arrangement spans a 6-year term and offers a legally binding solution for restructuring your debts. It involves a single affordable payment managed by a Personal Insolvency Practitioner (PIP), who distributes funds to creditors according to the terms of the agreement.
- DSA (Debt Settlement Arrangement)
On the other hand, a DSA is designed for unsecured debt only. If you’re dealing with loans, credit cards, or overdrafts, a DSA may be the right choice. Similar to a PIA, a DSA operates under a 5-year term and provides a structured repayment plan, ultimately leading to the write-off of any remaining unsecured debt balances.
Navigating bankruptcy
While bankruptcy can be a daunting prospect, it offers a fresh start for individuals burdened by insurmountable debt. Here’s what you need to know:
Debt Write-Off
Bankruptcy entails the complete write-off of unsecured debt, providing relief from the financial burden.
Asset Protection
While certain assets may be transferred to the Official Assignee, essential possessions are typically safeguarded, offering a measure of security.
Income Contribution
Bankrupt individuals may be required to contribute surplus income toward their debts for up to 3 years, ensuring a fair resolution for creditors.
Discharge and Beyond
Bankruptcy typically lasts for 12 months, after which individuals are discharged, allowing them to rebuild their financial future.
Contact our specialists
Mark Ryan
Banking & Insolvency PartnerCork
Book a meeting
Book a free, no-obligation chat with our experts where we find out a bit more about your business, explain our services, and how we could work with you.
Case summaries
Case Summary 1 – Accelerated DSA (6 months)
- Type of Arrangement: Accelerated DSA (6 months)
- Debtor: Husband sole applicant (Company Director)
- Creditors: PPR and unsecured debts re Property Investments and Business Failure
- Total Debts: € 6.3m
- Total Net dividends: Proposed at € 75,930 (based on 5 Year DSA Term) OR € 30,000 for the Accelerated DSA
- Total % Write off of the Net Residual Debt: 99.5%
Notes:
- The majority of creditors accepted the € 30,000 lump sum as full and final settlement of the total debt due.
- The debtor made this payment within 6 months and he has now exited the insolvency process.
- Creditors had no issue with the PPR loan notwithstanding that it was in positive equity.
- Judgment proceedings were scheduled at the time.
- The main issue related to unsecured debt due a business failure, property investment and speculation.
- A family member provided the lump sum.
Case Summary 2 – PIA - Variation of a Standard 6-year PIA term
- Type of Arrangement: Standard PIA (6-year term)
- Debtor: Husband & Wife (Private Sector)
- Creditors: PPR, BTL, Commercial, unsecured debts, trade creditors and Revenue debts re Business Failure
- Total Debts: € 1.75m
- Total Net dividends: € 40,058 (based on 6 Year PIA Term)
- Total % Write off of the Net Residual Debt: 97%
Notes:
- The PPR loan was reduced to a sustainable level.
- The BTL and commercial properties were surrendered. The judgment mortgages were included as unsecured debts. Revenue opted in to the arrangement.
- Due to ill health of one of the debtors a variation was proposed and accepted by creditors
- A variation of the court approved 6-year PIA was required due to a material change in the debtor’s health and financial circumstances.
- The 6-year standard PIA was converted into an Accelerated 12-month PIA with a lump sum payable of € 15,000
Case Summary 3 – Accelerated PIA (12 months)
- Type of Arrangement: Accelerated PIA (12 months)
- Debtor: Husband & Wife (Public Sector)
- Creditors: PPR, BTL, unsecured debts and Revenue debts
- Total Debts: € 2.1m
- Total Net dividends: € 7,500 (based on Accelerated PIA 12-month Term)
- Total % Write off of the Net Residual Debt: 99.8%
Notes:
- This was a complex case
- The PPR loan was reduced by their retirement lump sum and from a personal loan to the debtor from a family member
- The balance remaining on the PPR was treated as an unsecured debt
- The BTL properties were surrendered
- The debtors’ both retired and retained their PPR
- They exited the arrangement after 12 months
Request a call back from one of our experts
Leave us your details and a member of our team will contact you.
