Personal Insolvency

At John McCarrick & Associates we have a dedicated understanding of insolvency issues. We formulate a strategy tailored to each of our clients when dealing with personal insolvency and financial institutions.

The changing global economy, volatile stock markets and banking issues can place businesses under severe pressure. This can result in underperformance, increased monetary difficulties and personal financial stresses.

We have the required level of knowledge and expertise to advise our clients on insolvency appointments. Our professional team will design a strategy that will assist you in overcoming any commercial difficulties.

We communicate with the banks on your behalf and agree proposals. We will protect your personal assets and help get your business back on track. At John McCarrick & Associates, we support you during a difficult period and guide you to a more positive time, where more hopeful endeavours will arise.

What you’ll get at John McCarrick & Associates:
• Clear understanding of your Asset & Liability Profile.
• Engaging on your behalf with your lender.
• Guiding Steps in the Resolution Process.
• Voluntary Scheme of Arrangement with the lender.
• Personal Insolvency Arrangements (PIAs).

For more information, or to book an appointment, contact us at (01) 4960102 or at jmccarrick@jmccarrick.com


Personal Insolvency – Steps to Resolution:
• Mortgage Arrears Resolution Process (MARP)
• Central Bank of Ireland Code of Conduct on Mortgage Arrears (2013)
• Engage and co-operating with the lender
• Voluntary scheme of arrangement with the lender
• Resolution Steps
• Debt settlement procedures. 3 debt resolution mechanisms introduced.

Debt Settlement Procedures
The Insolvency Service of Ireland has a central role in administering the 3 debt resolution mechanisms introduced by the Act - Debt Relief Notices (DRNs), Debt Settlement Arrangements (DSAs) and Personal Insolvency Arrangements (PIAs), and in monitoring their operation. It also plays a key role in administering bankruptcy procedures.



Three new schemes:
Debt Relief Notice (DRN) 
• Debt Settlement Arrangement (DSA) 
• Personal Insolvency Arrangement (PIA) 
These function as alternatives to the traditional remedy of bankruptcy, a High Court process governed by the Bankruptcy Act 1988. While bankruptcy continues to be available as the remedy of last resort, the Personal Insolvency Act 2012 makes significant changes to the Bankruptcy Act 1988. These changes include a requirement for the High Court to consider whether the debtor’s insolvency could, instead of bankruptcy, be more appropriately dealt with by means of a DSA or PIA under the Act.


A lender must ensure that it has in place a Mortgage Arrears Resolution Process as a framework for handling cases as specified in Provision 18 below. The MARP must incorporate the steps set out in this Code, i.e.:

Step 1: Communication with borrowers;
Step 2: Financial information;
Step 3: Assessment; and
Step 4: Resolution.


RESOLUTION STEPS

• In order to determine which options for alternative repayment arrangements are viable for each particular case, a lender must explore all of the options for alternative repayment arrangements offered by that lender. Such alternative repayment arrangements may include:

a) Interest only repayments on the mortgage for a specified period of time;
b) Permanently reducing the interest rate on the mortgage;
c) Temporarily reducing the interest rate on the mortgage for a specified period of time;
d) An arrangement to pay interest and part of the normal capital amount for a specified period of time;
e) Deferring payment of all or part of the scheduled mortgage repayment for a specified period of time;
f) Extending the term of the mortgage;
g) Changing the type of the mortgage;
h) Adding arrears and interest to the principal amount due;
i) Equity participation;
j) Warehousing part of the mortgage (including through a split mortgage);
k) Reducing the principal sum to a specified amount; and
l) Any voluntary scheme to which the lender has signed up e.g. Deferred Interest Scheme.

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