Individual insolvency alternatives. Discover 3 debt quality processes to aid mortgage-holders also people with unsustainable loans to attain agreements with their creditors.

Individual insolvency alternatives. Discover 3 debt quality processes to aid mortgage-holders also people with unsustainable loans to attain agreements with their creditors.


These procedures promote different ways to people in different issues. Each solution possesses its own rules and procedures.

One vital issue is whether your financial situation include secured or not. a secured financial obligation is a loan where residential property or products are available as secure deposit against non-payment. Mortgages are the most typical secured finance. In general, credit eg bank loans and credit card debt is unsecured outstanding debts, but if they have been rolling right up in the home loan, they being secured loans.

The 3 debt solution treatments are:

a credit card debt relief see (DRN) to allow for the write-off of obligations (generally speaking unsecured and in some cases guaranteed) doing €35,000, with a 3-year watch stage

a debt negotiation Arrangement (DSA) when it comes to consented settlement of credit card debt, with no maximum involved, generally over a period of five years

A Personal Insolvency plan (PIA) for your arranged payment of secured debt around €3 million (though this cap can be improved) and credit card debt, without any restrict engaging, normally over a period of up to 6 age

These processes were launched of the individual Insolvency Act 2012 and generally are described in more detail below.

If you’ve tried to resolve your debt problems with these procedures however they are not suitable you’ll get case of bankruptcy. Personal Bankruptcy is actually a proper Higher Court processes for those who have obligations over €20,000.

General guidelines

Each of the 3 debt quality procedures possesses its own formula and procedures nevertheless the after biggest regulations affect these.

Limits on consumption

You’ll be tangled up in only 1 of the 3 methods (DRN, DSA or PIA) or in the bankruptcy process at any onetime. If you utilize these 4 procedures, could normally need wait some years before you apply to utilize another.

You might use each one of the 3 procedures only once inside lifetime. (there is absolutely no these maximum on bankruptcy it could well be unusual proper to go broke double.)

Working right up bills

You must not purposely end paying (or underpay) your creditors while these processes are now being developed because may cause your application become ineligible.

Supply of data

You will need to conclude a recommended financial record, providing full and sincere information regarding your financial situation. The desired ideas when it comes to declaration is defined in the non-public Insolvency Act 2012 (Prescribed financial record) rules 2014. You must signal a declaration your operating in good-faith and co-operate fully with the techniques.

You are going to need to bring your own authored permission that certain individual data used by banks as well as other finance institutions is generally reached so that your finances is validated. Authorities departments and agencies will have the power to produce specific information on you.

General public registers

When you use these 3 procedures, their label and details shall be printed on a join, which is available for the public regarding the ISI internet site. The success or troubles associated with processes might also be tape-recorded.

Debt Settlement Notice

Your debt Relief Notice (DRN) techniques produces credit card debt relief for people who have without any throw away money or assets no possibility of being in a position to pay back the debt in the next three years. If a DRN was granted for your family, it will allow for the write-off of your own qualifying loans up to €35,000 at the mercy of a 3-year watch course.

In those times creditors will not be able to pursue you for repayment, if your conditions boost throughout 3 years, you may need to spend part of your financial situation properly. After the 36 months, most of the debts included in the DRN can be created down, even if you have not been able to pay any such thing off them.

How will you become a DRN?

The application must certanly be made through an Approved Intermediary (AI) – observe how to make use of the following. This is a person who try authorised by ISI to work with you together with your application.

Find out more in our data on Debt Relief Notices (DRNs) as well as on the ISI websites.