1. Personal and corporate insolvency
EUGENE MCDARBY
05/02/2016

2. Agenda summary Background Case Study Creditor Information
Points of Interest
New case 2

3. INFORMAL / FORMAL BANK PROPOSALS
Historical Debt Landscape:
Creditor Linear approach to debt.
“Whoever shouts loudest get paid first” – unsecured creditors
Interest only or restructured deals on mortgage
Legal route
hard to achieve debt write offs with banks preference of banks was to ‘park residual debt’ or judgement mortgage.
Core reason for High level of Mortgage arrears.
Central bank/ MARP/CCMA
The new Personal Insolvency Act now represents an opportunity to enter into informal/formal settlements with lenders on all forms of debt.
The psyche is beginning to change-Debt write off now accepted – other jurisdictions
The new insolvency structure can act as a baseline for any agreement with the bank.
Possible Asset Disposal Strategy-perhaps with DSA/PIA to complete (multiple creditors) or multiple variations of same based on affordability.

4. Cases Practical approved examples: Michael and Sarah – Dublin – PIA
Car Retailer
Family home is now a BTL
€189,000 unsecured debts – debt with brother!!!
Christy – Dublin – DSA
Haulage Contractor
4 properties including family home
€278,000 unsecured debts

5. Personal Insolvency Arrangement
Secured debts:
UB Loan €349k on property valued at €300
RIP €1200 pm agreed at a reduced interest rate of 1.5%
Various Unsecured total €189k
6 year dividend agreed at 16.37% ( €640 pm )
VS Bankruptcy at 0% ??? return for unsecured creditors and sale of property

6. Debt Settlement Arrangement
Secured Debts of €1.238 M on 4 properties all sustainable
Unsecured debts of €279 k
Deal agreed at 18.6% dividend over 5 years ( €980.52)
Vs Bankruptcy at 0% ???? for Unsecured

7. information Typical Information for bank agreement
Proposal to include:
Current financial position and history of debtor
Presentation of options to the debtor including formal insolvency vs Bankruptcy
Preparation of the Statement of affairs and estimated Outcome Statement of Various Options
Presentation of outline proposal and demonstration how it is better for bank (both financially/non financially)
Full traceability of assets (supported by independent valuations)

8. Points to note Repossession cases: Loan sustainability
Land and Conveyance act
PIP Fees
Debtor change of Circumstance
RLE’s – guideline
System needs to be less onerous 8

9. New Case
Widowed Lady 67
Family home and rental property on same site in Wicklow:
Similar valuations circa €600k each
Loan €1.4k million tracker at 2.4%
Disabled son living at home
Circa 40k unsecured debts
Earning circa €3500pm, mainly widows pension.
PTSB had issued demand notice and want sale of both properties to clear debts.
What options would you negotiate???? 9

10. Contact details
Eugene McDarby Personal Insolvency Practitioner Specialising in personal insolvency and debt issues: Many years experience in providing people in financial difficulties with practical advice Contact Eugene at