Personal Debt Solutions

A significant legacy of Ireland's recent recession is unsustainable personal debt. To help address the problem, the Personal Insolvency Act 2012, signed into law in December 2012, reduced Ireland’s bankruptcy term from 12 to 3 years.

The legislation introduced 3 new non–judicial debt settlement processes. These are:

Debt Relief Notices (DRN) for the write off of debts of up to €20,000.
Debt Settlement Arrangements (DSA) for the write off of unsecured debt in excess of €20,000 with no maximum limit.
Personal Insolvency Arrangements (PIA) for both secured and unsecured debt. Under the legislation, two categories of individuals can assist those in financial distress:

Approved Intermediaries (AIs) provide advice on Debt Relief Notices where debts are less than €20,000.

Personal Insolvency Practitioners (PIPs) are qualified professionals regulated by the Insolvency Service of Ireland who help individuals to reach a solution through Debt Settlement Arrangements and Personal Insolvency Arrangements.

When the non-judicial settlement options do not suit an individual, or when creditors do not accept a proposed scheme of arrangement, it then becomes necessary for the debtor to petition for bankruptcy. Before petitioning, however, the debtor must show that their specific circumstances made them unsuitable for non–judicial settlement.

Russell Brennan Keane Personal Debt Solutions team, led by Recovery & Restructuring Partner Brendan O Donoghue, is experienced in dealing with all types personal debt. We assist with Debt Settlement Arrangements and Personal Insolvency Arrangements and have a strong track record negotiating on behalf of individuals and achieving realistic, sustainable, informal debt solutions. Where appropriate, we act as Personal Insolvency Practitioners. We also assist with bankruptcy petitions when an individual, for whatever reason, cannot avail of a non–judicial settlement process.

For a confidential discussion about your specific requirements, please contact a member of our team.