1. Personal and corporate insolvency
EUGENE MCDARBY
30/05/2017

2. Agenda summary Background Case Studies Post PC Process
Key Sections of the Act
Points of Interest 2

3. INFORMAL / FORMAL BANK PROPOSALS
Historical Debt Landscape:
Creditor Linear approach to debt.
“Whoever shouts loudest get paid first” – unsecured creditors
Central bank/ MARP/CCMA – secured creditors
Legal route - repossession
hard to achieve debt write offs with banks preference of banks is to ‘park residual debt’ or sell debt.
Core reason for High level of Mortgage arrears – circa 34k in long term arrears.
Legal Aid board Scheme.
Section 115a
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: JH – Sligo – PIA
Manufacturing employee
Family home loan circa €380k
Value €150 k
€170k unsecured debts , CU/Trade Creditors
Revenue €95k
Christy – Dublin – DSA
Haulage Contractor
4 properties including family home
€278,000 unsecured debts

5. Personal Insolvency Arrangement
Secured debts:
KBC Loan €387k written down to property value of €150k
Revenue preferential of €10k
Various Unsecured total €170k
6 year dividend agreed at 2.06%
VS Bankruptcy at 0% ??? return for unsecured creditors.

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. Advice for scheme Typical Information
Current financial position and history of debtor ( PFS/SFS)
Presentation of options to the debtor including formal insolvency vs Bankruptcy
Full options up to section 52 of Personal Insolvency Act
Typically 2/3 meetings.

8. Process post PC
Notify creditors by 5pm the day after PC has been issued
Request Proof of Debt from Creditors
Request must be in writing
Creditors have 14 days to respond
Include the following with your request:
Copy of PC
Copy of Prescribed Financial Statement
A copy of S97 & S98 of the Personal Insolvency Act 2012
Request can be sent via or Post
Sample letter attached 8

9. Receipt of Proof of Debt
On receipt of POD verify amounts against PC
If there are any material discrepancies the PFS will need to be amended:
Where a PFS is amended a new Statutory Declaration will have to be signed by the client 9

10. Proposal On completion of the 14 day POD period
Prepare draft proposal document
Prepare draft PIP Report/Arrangement (See example)
Circulate draft proposal to creditors (not a requirement) for review
Allow 2/3 weeks for creditors to review draft documents
Review creditors feedback, update draft documents
Call Creditors Meeting 10

11. Calling the Creditors Meeting
Allow 14 Days Notice
Allow 1 day for post
Day of meeting is not included
Should allow 16 days
Documents to be sent to Creditors (and the ISI)
Notice of Creditors Meeting
PFS
PIP Statement
Instrument appointing a Proxy
Post/ to Creditors and upload to case on the ISI system 11

12. Key sections of the Act S99 Mandatory Conditions of a PIA
h) a Personal Insolvency Arrangement shall not require that the debtor dispose
of his or her interest in the debtor’s principal private residence or to cease
to occupy such residence unless the provisions of section 104(3) apply;
(k) subject to sections 102 to 105, a Personal Insolvency Arrangement shall make
provision for the manner in which security held by a secured creditor is to be treated 12

13. Topical items Bankruptcy process Section 115A appeals Vulture Funds
Treatment of RLE’s and special circumstances
Bankruptcy process

14. Points to note Repossession cases: Loan sustainability
Land and Conveyance act
PIP Fees
Debtor change of Circumstance/ongoing management
RLE’s – guideline 14

15. 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