Category Archives: Personal Insolvency Practitioners

Insolvency Application Fees Suspended until 2016

. In order to remove any perceived barrier to seeking help, the Insolvency Service of Ireland (ISI) SI has suspended all application fees for debt solutions until the end of 2015. Previously, these fees were €100 for a DRN, €250 for a DSA and €500 for a PIA.

“Application fees were raised by some people as a potential barrier,” said Lorcan O’Connor, “so we have removed them. We have tried to remove as many obstacles as we possibly can. While the majority of Personal Insolvency Practitioners (PIPs) charge a consultation fee, in almost all cases this is in the region of €100-€300 and some may not charge an initial fee at all. When a PIP takes on your case, you get protection from your creditors, you may have more to spend at the end of each week on food and day-to-day expenses, and you will be on a path to a fresh start.”

 

The ISI’s information campaign, ‘Back on Track’, will feature a new user-friendly website www.backontrack.ie, with videos and personal stories from people who have gone through the insolvency process successfully. Print and radio ads will run in regional and national media, starting this week. Guides to the three debt solutions have been revised and simplified, and the ISI will host a series of townhall meetings with community leaders in seventeen venues around the country.

Authorised Personal Insolvency Practitioners

The first batch of Personal Insolvency Practitioners (PIPs) have been approved by the Insolvency Service of Ireland (ISI).
Anyone who intends to apply for  a Debt Settlement Arrangement or  a Personal InsolvencyArrangement will have to apply through one of these authorised PIPs .

There are currently just nine on the list of approved PIPs – with 4 of them in Tipperary. Apparently about  100 individuals have applied for approval to become PIPs.

The ISI is preparing for thousands of applications for debt relief, with estimated government figures suggesting that there will be 15,000 applications for debt settlement arrangements (DSAs) and personal insolvency arrangements (PIAs) in the first year of the new insolvency regime. About 3,000 to 4,000 applications for debt relief notices (DRNs) are also expected.

Approved PIPs Aug 12th 2013


County
Name Address Telephone
Co
Clare
Mr.
John Hogan
4 Abbey Street
, Ennis
065
682 4894
Dublin 2 Mr Jim Stafford 44 Fitzwilliam
Place
01 661 4066
Dublin 2 Mr Michael
McAteer
24-26 City
Quay
01 6805 805
Dublin
2
Mr.
Alan Geraghty
44
Fitzwilliam Place

01
661 4066
Dublin 2 Mr Tom Murray 44 Fitzwilliam
Place
01 661 4066
Co Limerick Mr Robert
Gloster
2 Cecil Street
, Limerick
086 804 5655
Co
Louth
Mr.
John Donnan
Mill
House Mill Street

Dundalk

042
932 6400
Co Meath Ms Tara Cheevers The Steeple
Buildings

High Street , Trim

046 943 8461
Co
Meath
Mr.
Barry Forrest
3C
Dunshaughlin Business Centre

Dunshaughlin

01
802 4217
Co
Tipperary
Ms
Marie Lane
Unit
6 Crann Ard

Fethard Road , Clonmel

052
618 4496
Co Tipperary Ms Frances
O’Hanlon
Unit 6 Crann
Ard

Fethard Road , Clonmel

052 618 4496
Co Tipperary Mr John Lynch Jervis House

Parnell Street , Clonmel

052 612 4344
Co Tipperary Mr John O’Connor Unit 6 Crann
Ard

Fethard Road, Clonmel

052 618 4496
Co Waterford Mr Mitchell
O’Brien
Garraunfadda

Dungarvan

Co Waterford

058 23511

Who Can become a Personal Insolvency Practitioner ?

With the new Irish Personal Insolvency regulations  – there will probably be plenty of people thinking of  making money out of sorting out other people’s debt problems.

Anyone who wants to apply for a Debt Settlement Arrangement or a Personal Insolvency Arrangement will have to apply through a PIP – Personal Insolvency Practitioner. These PIPS will be able to charge fees . The fees will be taken out of the payments made to creditors.

The Insolvency Service started  accepting applications to become a  PIP during June 2013. There will be an application fee of €1500 and a renewal fee of €1000 annually. You can make your  application  here

According to the Insolvency Service of Ireland – only the following types of people can make an application to carry on practice as a personal insolvency practitioner

A solicitor in respect of whom a practising certificate (within the meaning of the Solicitors Acts 1954 to 2011) is in force; or

A barrister at law called to the Bar of Ireland;

A qualified accountant and a member of a prescribed accountancy body (within the meaning of section 4 of the Companies (Auditing and Accounting) Act 2003; or

A qualified financial advisor who holds a current qualification from the Life Insurance Association of Ireland (LIA), the Insurance Institute or the Institute of Bankers School of Professional Finance; or

Anyone who holds a qualification in law, business, finance or other appropriate similar qualification to the satisfaction of the Insolvency Service recognised to at least level 7 of the National Qualifications Framework by Quality and Qualifications Ireland (or equivalent)

ALSO – the person must be able to  demonstrate to the satisfaction of the Insolvency Service that he or she has relevant knowledge and experience of and has completed a course of study and passed an examination on the law and practice generally as it applies in the State relating to the insolvency of individuals; and the Act

PLUS – Before someone  can become  a Personal Insolvency Practitioner, they must aslo satisfy the Insolvency Service that he or she:

a) has adequate organisational capability and resources to carry on the practise of a Personal Insolvency Practitioner

b) holds a policy of professional indemnity insurance.

c) is tax compliant.

 

Personal Insolvency Practitioner Fees

Some of the big financial companies will be trying to get some of the personal insolvency work in Ireland now that the new Personal Insolvency legislation is going to be implemented.

Anyone applying for the Debt Relief Notice (on debts under €20k)   will not pay any fees.
The more complex DSA and PIA will require the involvement of a Personal Insolvency Practitioner – and they can charge fees. It is the creditors who will pay the fees (the people or companies that are owed the money).
How much will the Fees be ?  In  in one of the examples on the Insolvency Service website – the PIP fees were estimated at €12000 over 5 years.  This was for a Personal Insolvency Arrangement for a couple. In the example the unsecured creditors were owed around €90000 – but at the end of 5 years they will only get just over €18000 back. The PIP gets two thirds of what the creditors get – and over €72000 is written off.

In another example of a PIA – the estimated PIP fees were €5100 over 5 years.
An example of a DSA involving  debts of €80000 –  the PIP fees were estimated at €4000 over 5 years.

Target Dates for Insolvency Service Launch

Establishment of the Insolvency Service of Ireland (ISI)

The new Insolvency Service is urgently needed in Ireland to help sort out some of the people in mortgage arrears.

On March 13th the Department of Finance  announced some target dates for the Insolvency Service

They said that extensive work is taking place to get the new Insolvency Service of Ireland operational as early as possible in 2013 under its Director who was appointed in October 2012.

Applications from the public will not be accepted until June 2013

These are the milestones

Launch the Insolvency Service of Ireland website :  End-March 2013

Publish Guides to the three new arrangements :  End-March 2013

Put in place an information line for the public. :  End-March 2013

Publish Regulations for the authorisation and licensing of Personal Insolvency Practitioners :  End-March 2013

Publish Guidelines on a Reasonable Standard of Living and Reasonable Living Expenses for Debtors :  End-March 2013

Authorise and regulate approved intermediaries and personal insolvency practitioners :   Q2 2013

Commence taking applications from public :  June 2013

Note –  The targets have already been missed. The Insolvency Service of Ireland are now saying that they will not be launching the site until mid April

Debt Settlement Arrangements

Debt Settlement Arrangement (DSA)  is something we might  be hearing a lot more about in Ireland soon.  New Irish  Insolvency laws are being introduced in 2013 to try and  help people sort out debt problems without resorting to legal action.
Debt Settlement Arrangements will allow  an agreement between you and your creditors (people you owe money to) to pay all or part of your debts off over a set period.

A DSA only applies to unsecured debts such as credit card, personal loans, overdrafts, retail, store catalogues, etc which amount to more than €20,000.
For debts below €20000 you need to look into a Debt Relief Notice .

The first stage is to find  a personal insolvency practitioner  (PIP) , who will examine your ircumstances, complete a financial statement of affairs and apply to the Insolvency Service for a Protective Certificate in respect of preparation of a DSA.
If granted –  the Protective Certificate would allow you a 30 days during which creditors may not take action against you.

The next step is for the personal insolvency practitioner to forward a DSA to your creditors for their agreement. The proposal would set out the amounts to be repaid by you  over a five year period and any special conditions.

If the repayment proposal is accepted by your creditors (by a vote of 65% in value of qualifying creditors), the Insolvency Service would provide formal registration of the Debt Settlement Arrangement

At the satisfactory conclusion of the DSA after 5 years, all of your  debts covered by it would be discharged in full.  You will not be able to apply for another DSA within a ten-year period.

A DSA will likely be subject to annual review by the PIP to reflect any changes in your fiinancial circumstances. It may be varied or terminated and you  could still be subject to an application for adjudication in bankruptcy on the ending, termination or failure of the DSA.

There are grounds for challenge by creditors to a  DSA proposal and there is a role for the courts on application to have a DSA annulled.

 

Personal Insolvency Jobs in Ireland

The upcoming implementation of the Personal Insolvency laws in Ireland is going to create new work for insolvency practitioners. Many financial firms will be trying to get in on the act (pardon the pun) and make some money out of other people’s debt problems.

Deloitte intends to act as a Personal Insolvency Practitioner and is  setting up a new team to provide this service. They recently advertised  a vacancy  for a Personal Insolvency Manage

They said that it was ”  a once-off opportunity to become involved, at a senior level, in a dynamic start up, entering a newly created market with huge growth potential.”

The  Principal Duties & Responsibilities would be :

·Playing a key role in the setting up of all aspects of Deloitte’s Personal Insolvency Department.

·Managing a team focused on negotiating, implementing & monitoring of Debt Settlement Arrangements and Personal Insolvency Arrangements.

·Playing a key role in the business development & marketing of the Personal Insolvency Department.

They are looking for people with significant skills & experience managing and implementing UK-based Individual Voluntary Arrangements (IVAs) .

There will probably be several other job openings for experienced insolvency practitioners in Ireland in the coming weeks and months.

 

Personal Insolvency Practitioners Ireland

To get a  Debt Settlement Arrangement or a Personal Insolvency Arrangement, you must apply through a Personal Insolvency Practitioner (PIP).

The Insolvency Service of Ireland will be responsible for licensing  Personal Insolvency Practitioners.
The Jstice Minister has said that  the ” Insolvency Service will not impose any particular restrictions on the type of professions of persons who will be licensed to be a PIP.”

The Insolvency Service will set up and maintain a Register of Personal Insolvency Practitioners.

Personal Insolvency Practitioners will need to have  a policy of professional indemnity insurance .

In other countries such as the UK or US  insolvency practitioners tend to be accountants or lawyers, but can also be other professionals in the broad financial services sectors.  In the UK – one of the main requirements is that individuals must pass an examination – the Joint Insolvency Examination .

Personal Insolvency Arrangements

Personal Insolvency Arrangements – How will they work ?

New Insolvency laws are due to come into force in Ireland in 2013
One feature of the new rules is a  Personal Insolvency Arrangement.

If you have a mixture of secured and  unsecured debts that you cannot repay – you may be able to enter into a  Personal Insolvency Arrangement or PIA.
Unsecured debts are those  such as credit card, personal loans, overdrafts etc.  Mortgages are secured debts  – these might be on your own  principal private residence or on a  buy-to-let or investment property.

A PIA is for people with debts between €20,000 and €3,000,000 who are insolvent and it is unforeseeable that over the course of a 5  year period they will  become solvent

(If you are insolvent it means you are unable to pay your  debts in full as they fall due.)

A personal Insolvency Arrangement will  provide a mechanism for  debt settlement and restructuring if you are insolvent but  have the means to make part payments of your debts over a period of years.

An application for a Personal Insolvency Arrangement has to be made via a personal insolvency practitioner (PIP) . They will complete a standard financial statement with you setting out your financial affairs in full. The personal insolvency trustee will advise you about your  options and will assess whether you meet the eligibility criteria for a PIA. Those criteria include the following:

· You  must be “cash-flow”  insolvent (i.e. unable to meet your debts in full as they fall due);

· it is unforeseeable that over the course of a five year period, you will become solvent;

· a debt settlement arrangement (DSA) would not be a viable alternative to a PIA as a mechanism to make you  solvent within a period of five years.

If the personal insolvency practitioner is satisfied that you meet the above eligibility criteria and is satisfied that there is a reasonable possibility that a PIA would be capable of making you solvent within six years, the personal insolvency trustee applies to the Insolvency Service for a protective certificate.
The Insolvency Service carries out certain checks in relation to the application and issues a protective certificate which protects you from action by your creditors for a minimum of 40 working days (and up to a maximum of [60] working days, subject to extension for a further [10] working days).

The personal insolvency trustee notifies your creditors and sends them prescribed information, including information about your financial situation.
The personal insolvency trustee considers any submissions from creditors and prepares a proposal for a PIA, taking into account what you can afford to pay to your creditors while leaving you  with sufficient income to maintain a reasonable standard of living.

The PIA can include things such as writing down mortgage debts , writing down unsecured debts. You cannot be forced to sell your home as part of the arrangement.

If  you consent to the proposal –  the PIP then summons a creditors’ meeting to vote on the proposal. In considering whether to vote in favour of the proposal, the creditors take into account whether the financial outcome for them under the PIA is likely to be better than the estimated financial outcome for them in alternative scenarios such as enforcement or bankruptcy.

The arrangement is accepted if creditors representing 65% of the value of the total debt (secured and unsecured) vote in favour and if more than 50% of the secured creditors and 50% of the unsecured creditors vote in favour.

If your financial circumstances improve over the course of the PIA  you are obliged to notify the PIP and the  terms of the PIA may be varied to provide for increased payments to the creditors.

If  you don’t  abide by the terms of the PIA (e.g. there is a 6 month arrears default in making the payments due under the PIA) the arrangement will fail and you  will again be liable in full for the debts. The creditors can then take enforcement action against you  or petition for your bankruptcy.

If you  successfully complete the PIA, all of your  unsecured debts  are discharged.  You will remain liable to pay the mortgage in respect of his principal private residence on the restructured terms agreed under the PIA.