Personal Insolvency Arrangement

Personal Insolvency Arrangement

A Personal Insolvency Arrangement (PIA) will provide for the agreed settlement of secured debt up to a limit of €3 million (although this cap may be increased with the consent of all secured creditors) and an unlimited amount of unsecured debt. A PIA will run over a period of 6 years, with a possible agreed extension to 7 years.

The PIA will work like a Debt Settlement Arrangement in the following ways:

  • You must apply through a Personal Insolvency Practitioner (PIP)
  • You must be able to make some repayments to your creditors in return for a discount of your debts
  • It will be a voluntary arrangement and will have to get the support of creditors – both secured and unsecured – representing at least 65% of your total debt In addition, over 50% of your secured creditors and 50% of unsecured creditors must vote in favour.

When the agreed period ends, and if your PIA has operated successfully, you will be discharged from the unsecured debts that it covered but the secured debt will only be discharged to the extent specified in the PIA.

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