Personal Insolvency Agreements
- A PIA can include secured and unsecured debts.
- You are protected while your PIA is in place.
- A limit of €3m applies to the amount of secured debt that can be included in a PIA, unless all secured creditors consent to the inclusion of a higher amount.
- A PIA must be agreed by the debtor and approved at a creditors meeting by a qualified majority of creditors.
- A PIA can last for up to 6-7 years.
- You can only have one PIA in your lifetime.
Debt Settlement Arrangement
- A DSA is only for unsecured debts including credit card loans, personal loans, personal loans and store cards.
- You are protected while your DSA is in place.
- There is no limit on the amount of debt.
- A DSA must be agreed to by the debtor and approved at a creditors meeting by a qualified majority of creditors.
- A DSA can last for up to 5-6 years
- You can only have one DSA in your lifetime
Bankruptcy is a formal high court process only suitable if your debts exceed your assets by more than €20,000 and you don’t qualify for any of the alternative solutions outlined in the Personal Insolvency Act 2012 to 2015. The alternatives to Bankruptcy are Debt Relief Notice (DRN), Debt Settlement Arrangement (DSA) and Personal Insolvency Arrangement (PIA).
When you are declared bankrupt, your property and possessions transfer to the Official Assignee. In return, the will deal with your creditors who will no longer be allowed to contact you in relation to the debt.