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.