If you are unable to pay your bills, loan repayments, mortgage or other debts as they are due, you are insolvent. The Personal Insolvency Act 2012 introduced three new debt solution options and reduced the bankruptcy period from 12 years to 3 years; a new bankruptcy term of 1 year was introduced in December 2015. The Personal Insolvency (Amendment) Act 2015 introduced further new measures to address the problem of personal debt in Ireland which included a court review where creditors do not initially support an arrangement proposal. This was followed by further changes in 2021 and 2022, again updating the legislation.
The options available to people in financial difficulty are:
- Debt Relief Notice (DRN) – debts below €35,000.
- Debt Settlement Arrangement (DSA) – unsecured debts, such as credit card or personal loans.
- Personal Insolvency Arrangement (PIA) – both secured debts, such as mortgages, and unsecured debts, such as credit card or personal loans.
- Bankruptcy – High Court process dealing with secured and unsecured debt.
Wherever you are located in Ireland, one of APIP’s nationwide members (PIPs) is available to discuss your debt situation with you. They will determine the insolvency option that can help you to get your finances back on track. To discuss your debt solution options, contact a PIP in your area here.
