1. Court Review of Personal Insolvency Arrangement
Jane Marshall
April 2016

2. Legal References Personal Insolvency (Amendment) Act 2015
Section 21 inserts section 115A into 2012 Act
Circuit Court Rules (Personal Insolvency) 2015 S.I. 506/2015
Rule 29A and Forms 52I and 52J
Rules of the Superior Courts (Personal Insolvency) S.I. 507/2015
Rule 21A and Forms 58 and 59

3. Court Review of PIA PIA affects Relevant Debt Secured on PPR
PIA "Not Approved“
at creditors' meeting or
deemed approved under 108(8)(a) or
by sole creditor under section 111A

4. Application to Court PIP may apply to Court for confirmation of a PIA
within 14 days after creditors’ meeting
if instructed in writing by the debtor
if he considers there are “reasonable grounds”
on notice to the debtor, ISI and each creditor

5. Protective Certificate
Protection continues until review completed
No need to apply for extension once review commenced

6. Notice of Motion – Form 52I
Record Number from application for protective certificate
Includes certain essential statements
Essential documents attached
Signed by PIP
Issued by relevant Court office
Hearing date at least 21 days from date of issue
Sent by PIP to the debtor, ISI and each creditor within 4 days

7. Form 52I– Essential Statements
The grounds for application
Relevant Debt included in PIA
PIA was not approved
At least one class of creditor approved PIA
Identified by reference to Form 52J
Reasons why creditors should be considered a class

8. More Essential Statements
Statement by the PIP that in his opinion
Debtor satisfies eligibility criteria
Proposed PIA complies with s99(2)
PIA does not release or affect excluded or excludable debts (where consent not given)
Additional notice to creditors
that a creditor can notify the Court of approval or objection, giving reasons

9. Documents to be Attached
Written instruction from debtor
Proposed PIA
Report which accompanied PIA
Certificate of votes cast – Form 52J

10. Form 52J - Table 1 Certificate of votes cast at meeting specifying
Total debt
Percentage of votes in favour and against
Total secured debt
Total unsecured debt

11. Form 52J - Table 2 List of all creditors who voted for the PIA
Nature and value of debt to each creditor
Proposed class for each creditor
Percentage of total debt voted
List of all creditors who voted against the PIA

12. Form 52J - Table 2 OR
Statement that sole creditor notified non-approval

13. Creditor Response A creditor lodging a notice in Court
should specify his reasons for support or objection
send a copy to
the ISI
the PIP
each other creditor

14. Essential Proofs Court must be satisfied that:
Eligibility criteria satisfied
Mandatory parts of s99 complied with
PIA does not affect excluded and excludable debt (where consent not given)
Grounds for objection (section 120) do not apply to debtor and PIA
Certificates and Statements of PIP may be accepted as evidence

15. Further Proofs – Provide if necessary
Court must be satisfied that:
PIA is compliant re PPR (section 104)
Reasonable prospect that PIA will:
enable debtor avoid bankruptcy
enable creditors to recover to extent debtor’s means reasonably permit
enable debtor to retain PPR
cost of retaining PPR not disproportionate

16. Further Proofs – Provide if necessary
Court must be satisfied that:
debtor reasonably likely to comply with PIA
PIA is fair and equitable to each class of creditor that has not approved PIA
PIA is not unfairly prejudicial to any interested party
at least one class of creditors has approved by 50% in value - other than where there is only one creditor

17. Court’s Discretion - provide evidence if necessary
When considering, Court shall have regard to
debtor’s attempts to meet his debts
creditor’s conduct in seeking to recover
within 2 years prior to Protective Certificate
Where submitted to court by secured creditor
submission or indication of preference by secured creditor and the date when made
alternative recovery options open to a creditor

18. Court Hearing Hearing with “ all due expedition”
hearing date on notice to ISI, PIP and creditors

19. The Decision of the Court
Registrar notifies ISI and PIP where Court makes or refuses an order
If order made: ISI to register the PIA and PIA comes into force
Any other appropriate order, including for costs

20. Classes of Creditors
Creditors with interests or claims of similar nature
May include only 1 creditor
Court to have regard to circumstances of case including statement of grounds, number and composition of creditors who voted
Proportion of overall debts represented by the creditors

21. Typical Classes PPR lender Other secured lenders
Unsecured lenders – interest bearing claims
“Preferential”/Excludable debt
Unsecured/trade creditors

22. Additional Classes Landlords Leasing /Hire Purchase
Contingent creditors
Connected creditors
Others?

23. Court Review of Personal Insolvency Arrangement
Jane Marshall
January 2016