Man writes off €3M debt with creditors getting .07% under PIA

There is a report in the newspapers this morning about a man whose personal insolvency arrangement has been approved by the High Court.

The man is having €3M of debt written off on the sale of three properties and the payment of €8,000. He is to retain his family home with the mortgage being restructured and extended.

The personal insolvency arrangement (PIA) is to last for 24 months.

This strikes me as a good deal for the debtor. And it is not the first such deal I have seen or have made a video about for my YouTube channel.

On the other hand, I have individuals contacting me about their debt problems and going down the road of self-pity and blame and finger pointing.

The solution appears to be straightforward: if you have debt problems you should pay a visit to a PIP (Personal Insolvency Practitioner).

If your case ends up in court a judge must apply the law. And the law will be the contract between the debtor and the lender under which the borrower promised to pay the money back.

The judge’s hands will be tied as he/she must apply the law.

Why not tie their hands with a personal insolvency arrangement which the court can approve?

In this case the court was told the creditors will do slightly better under the PIA than they would if he went bankrupt.

The creditors are to receive .07% of what they are owed. There were no objections, and the court approved the PIA.

After 24 months the debtor, Mr Reilly, will return to solvency.