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APIP Success Stories

APIP members (PIPs) are helping people all over Ireland to restructure and/or write-down their debt to help them to get back on track financially.  

9 months from consultation to court approval of PIAs

Date added: 31 Aug 2015

Time frame from initial consultation to court approval of PIAs - 9 months

  • Waterford couple (aged 49 and 42) with two primary school aged children – middleclass self-employed 
  • Borrowed against family home to invest in two RIPs in 2006 before business collapsed – not just reduced income, no income for c2 years. Assisted by family members to purchase groceries and pay ESB bills 
  • Contacted PIP Christmas week 2014 with repossession proceedings before County Registrar in Jan 2015. Secured debt (including PPR mortgage) of €961K & unsecured debt of €162K 
  • New business getting off the ground but first year’s accounts not yet available 
  • PIP assesses case and identifies possible solution short of bankruptcy that could secure family home and protect RLEs. PIP proceeds to secure S.2(2) adjournment on behalf of debtors. 
  • Issues to be overcome: 

a) Relationship with dominant secured creditor very damaged, with both receivers and legal repossession scenarios active (relationship so bad that secured creditor actively opposed further S.2(4) adjournment sought by debtor/PIP) 

b) Proof of income from new business difficult to establish 

  • Solution agreed by creditors in approving PIAs for couple: 
  1. Family keep home with mortgage payment restructured respecting household’s RLEs 
  2. €346K of PPR mortgage warehoused at 0% APR to death of longest surviving spouse 
  3. €252K of secured debt written-down 
  4. €414K in total unsecured debt written-down 
  5. Three-year PIA, funded with two €10K lump-sum contributions from family members 
  • Debtors returned to solvency short of bankruptcy, while retaining their family home and protecting their Reasonable Living Expenses; with only a sustainable family home mortgage to service each month 
  • Creditors close files on 12 non-performing loans, mitigating their exposure on what would have been an imminent bankruptcy. 100% of creditors vote to approve the PIAs [8 out of 8 creditors] 
  • In this case the family home would not have been retainable in bankruptcy, i.e. restructured mortgage payment exceeds 125% of current market rent for an appropriate property in the Waterford area.