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Distressed Debtor Help Your PIP to Help You - By Gerry Owens, Cork APIP Member (PIP)

Date added: 11 Dec 2015

Dealing with debt is not easy when you are distressed and fearful of the consequences for you and your family.  For people trying to deal with paying their debts, the government passed the Personal Insolvency Act 2012.  Within that Act, provision was made for the establishment of the Insolvency Service of Ireland (ISI) and also professional advisers called personal insolvency practitioners (PIP’s), otherwise known as third-party advisers.  Before a person can act as a PIP, s/he must prove they have the required qualifications, pass an exam and become authorised by the ISI.

I am sure you would like to know…how you can help your PIP to help you.  The answer is straightforward; provide all of the information that you can, such as:

  • Your family
  • Your income
  • Your day-to-day living expenses
  • Your debts (loans or outstanding bills)
  • Your assets (houses, cars, investments, pensions and cash)
  • Any other information about you, for example; special circumstances, such as medical expenses due to the ill health of you or a family member.

Obtaining the correct information from your lender can be more of a problem than you think.  When it comes to important information about a loan the following key questions need to be asked - and the answers recorded:

  • The total balance outstanding on my account?
  • The total arrears balance contained within the above balance?
  • The outstanding term?
  • The rate of interest?
  • The type of loan contract?
  • The current repayment?
  • Is there a buildings insurance premium contained in the current repayment?
  • Is there a life assurance premium contained in the current repayment?

You can simply copy this list as many times as you need and write in the loan account number(s) on top of the page and write down the answer to each question or, if you prefer, you can copy (and sign) the letter I have drafted, below (see appendix).

By obtaining the answers to these questions, you will be able to give great assistance to your PIP (third-party adviser).  In addition to this information, you should also obtain three recent payslips or social welfare receipts and three to six months' bank statements.  If you owe money to other creditors, ask for a statement of what is owed.  A sample letter for creditors other than a lending institution is outlined below (see appendix).

Contact Gerry Owens, Cork APIP member (PIP), Principal at Negotiators

With over 38 years of experience in banking, property and mortgages, Gerry Owens is well positioned to help guide you through your financial situation.  Gerry is a regulated personal insolvency practitioner (PIP).  If you have any questions regarding the above advice or letters, please call Gerry Owens at 021 489 3303 or  086 833 33 33.

For further information visit Gerry Owens' APIP profile here.

 APPENDIX

This is the first letter - for lending institutions (banks):

Your address:

To: Name of Bank
Date:
Reference: Account number(s) XXXXXXXX

Dear Sir/Madam,

With regard to all of my accounts held at your bank, please provide me have the following information:

  • The total balance outstanding on my account
  • The total arrears balance contained within the above balance
  • The outstanding term
  • The rate of interest
  • The type of loan contract
  • The current repayment
  • Is there a buildings insurance premium contained in the current repayment?
  • Is there a life assurance premium contained in the current repayment?
  • Have you appointed a case manager to who I should direct future correspondence?
  • If I request a face to face meeting with a representative will you facilitate such a meeting in my local area?

Please forward a print out of the most recent statement of my account, and if that statement is for the previous year end, please let me have a print out of the account for the year to date.

Yours sincerely,

A N Other A N Other (if the account is in more than one name each person named on the account should sign)

 

This is the second letter - designed for creditors other than lending institutions:

Your address:

To: Name of Creditor
Date:
Reference: Account number(s) XXXXXXXX

Dear Sir/Madam,

With regard to what I owe to you, please provide me with the total balance outstanding on my account, including any surcharges and penalties which have been added to the account.

Yours sincerely,

A N Other A N Other (if the account is in more than one name each person named on the account should sign).