personal insolvency

mickm1986

hi can anyone explain to me what personal insolvency is and how would it affect me. my situation is a have 1 165,000 mortgage on a very small wage as my wage keeps getting court. im supporting my wife whos unemployed and my daughter. cant keep up with the restructured payments and bank wont allow me to go onto the mortgage to rent scheme. Any explanation of then insolvency bill in this situation would be greatly appreciated. thanks

ABajaninCork

Your best bet is to get independent financial advice. Make an appointment to see someone in MABS.

Get some free legal advice from FLAC as well.

NoQuarter

Have a read of this: http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/personal_insolvency/personal_insolvency_options.html

You can only go for the option that allow you to relieve secured debts as yours is a mortgage. Most options are for unsecured debts such as credit cards and bank loans.

The insolvency service is in the process of being set up and should be operational by the summer or a little bit after so you cant do anything until then anyway.

When the insolvency service is operational, you will apply and work with a personal insolvency practitioner to come up with a payment plan, based on your financials, to propose to the bank. Its entirely up to the bank whether they accept the proposals or not. Then you go into a payment plan with them and after the payment period is complete, all your debts are written off.

There is basically nothing you can do for the moment but keep googling the "insolvency service of ireland" from time to time, they should have a website up in the coming months.

mickm1986

thanks for that, much appreciated.

devioustrader

Hi Mick, I'm not a financial professional or legal person or anything but I downloaded the act just to see how it relates to my own situation and found it quite interesting. Before you go to a professional advisor it would be a good idea to have a quick look at the act. There seems to be 3 different parts to it and once you figure out which part you belong to then you can pretty much ignore the rest.

I believe that the first part relates to a Debt Relief Notice which concerns itself with debt up to 20,000.

The other two are for larger limits, 300k I think, but don't quote me.

The other part talks in millions.

There are a lot of conditions to be met and it is definitely a professional advice thing, but it won't do any harm to have all the right questions ready.

You also cannot enter into one of these services without going through a specialist, so it is unavoidable that you have to seek advice when it's the specialist that will be giving you the advice anyway.

mickm1986

thanks very much for the information devious!!! its grealy appreciated