If you find yourself in the position of having mounting debts and are struggling to repay them, then KM solicitors can help. We have extensive experience of offering solutions to clients to see their way back to solvency. This can be achieved through informal agreement by negotiation, formal agreement through a Personal Insolvency Practitioner (PIP) or Bankruptcy.
The Personal Insolvency Act 2012 introduced 3 new mechanisms for debt relief:
Debt Relief Notice - Offers a form of debt protection for 3 years and a write off of qualifying debt up to €35,000.
Debt Settlement Arrangement - A Debt Settlement Arrangement provides for a negotiated formal settlement of unsecured debt with one or more creditors over a period of 5 years, with a possible
agreed extension to 6 years. This option is for people who can pay some of their debts but require a discount to be applied to the overall debt. They would not qualify for a Debt Relief Notice.
Personal Insolvency Arrangement - A Personal Insolvency Arrangement provides for an agreed settlement of secured debt up to a limit of €3 million. This limit can be varied by consent of your creditors. There is no cap on the unsecured debt that can be included in the arrangement.
The Bankruptcy Act 1988 (as amended)
This may be the only solution if the three mechanisms above don’t fit your debt profile. Unlike the above options, bankruptcy offers you full protection from your creditors during the period of your bankruptcy. However, the family home can be at risk and so careful consideration needs to be given if choosing this option.
KM Solicitors specialises in providing legal services in all these areas and can best advise you what mechanisms best suits your needs.