Debt Solutions provided by Creative Insolvency Solutions
Creative Insolvency Solutions can help our clients with a range of debt solutions and experienced staff to guide you through the process to restructure or even write off debt that you cannot repay.
Personal Insolvency Practitioners (PIPS) deal with Debt Settlement Arrangements (DSA) and Personal Insolvency Arrangements (PIA) while Approved Intermediaries (AIs) deal with Debt Relief Notices (DRN).
With our solutions you are entitled and guaranteed to a reasonable standard of living. This includes food, clothing, education, health care and a modest allowance for savings. Under the ISI model, this means a higher standard than merely living at a subsistence level, while people often exist on when in debt. You will be in complete control of your spending, as nobody will tell you how to allocate your money.
If you have a low income, few assets and debts of less than €35,000 that you can’t repay, then a DRN could be right for you. A DRN is a formal agreement which allows you to write off your debt in full.
Debts such as personal loans, credit card loans, store cards, credit union loans and overdrafts could be included in a DRN.
Some Eligibility Critera:
- Unsecured debts of €35,000 or less
- No existing mortgage or owned property or large asset
- €60 left after reasonable living expenses each month
- You meet the criteria for having very little assets, apart from a few essential items of value
- You have not been granted a DRN before
If you have a mortgage, a DRN is not a suitable solution. This is because you have a considerable asset, even if you are not meeting mortgage repayments. However, you may be eligible for a DSA/PIA.
The creditors included in the DRN can no longer contact you asking you to repay debts that are included in your DRN – no more phone calls, letters or visits.
A DRN will last for up to 3 years. It is a formal, legally binding solution whereby unmanageable debt is completely written off after 3 years.
If you have unsecured debt such as credit cards, loans and overdrafts, a DSA could be the right choice for you. A DSA is a formal agreement with all your creditors that will write off some of your debt.
We will help arrange the DSA for you and negotiate with your creditors on your behalf. This will put an end to any demands for unpaid debt. No more phone calls, letters or visits.
Under a DSA, you may agree to repay a percentage of your overall debt that you can afford in monthly payments over a defined period of time.
A DSA is a formal, legally binding agreement between you and your creditors. This means that it cannot be changed without the agreement of both parties, which means there will be no surprise changes such as additional interest or charges added along the way.
Once your final agreed monthly repayment is made and you have kept to the terms of the agreement, your creditors will write off your remaining unsecured debt.
If you have secured debt (e.g. debt backed by an asset like a mortgage), and unsecured debt (e.g. credit cards, loans, overdrafts) that you cannot repay, a PIA could be the right choice for you.
A PIA is a formal agreement with all of your creditors that will write off some of your unsecured debt and restructure any remaining secured debt. A key feature of a PIA is that, in the majority of cases, a debtor will be able to remain in their home.
Benefits of a PIA
We will help arrange the PIA for you and negotiate with your creditors on your behalf. This will put an end to any demands for unpaid debt. No more phone calls, letters or visits.
Under a PIA, you may agree to repay a percentage of your overall debt that you can afford in monthly payments over a defined period of time.
A PIA is a formal, legally binding agreement between you and your creditors. This means that it cannot be changed without the agreement of both parties, which means there will be no surprise changes such as additional interest or charges added along the way.
Once your final agreed monthly repayment is made and you have kept to the terms of the agreement, your creditors will write off your remaining unsecured debt.
Bankruptcy
Before considering to apply for bankruptcy, you must first have explored alternative solutions to bankruptcy which are detailed above. If the alternative solutions are not applicable to your situation, then bankruptcy could be the right solution for you. We will be able to advise you accordingly if this is the case.
Bankruptcy is a formal, High Court process for people who are in debt of over €20,000. Once you are made bankrupt, all of your unsecured debt will be written off. In Bankruptcy, your property and possessions are transferred to a person called The Official Assignee (OA). The OA will deal with all of your creditors for you and put an end to demands from your unsecured creditors for unpaid debt.
You may not necessarily lose your family home. You may be able to agree a schedule of mortgage payments with your bank and the OA in order to stay in your home and pay off your mortgage. Bankruptcy will normally last for one year. However, if you have disposable income, contributions over 3 years may be sought.
All debt solutions overseen by the ISI, including bankruptcy, are designed to get you back on track financially and if you enter any of them, you will be solvent at the end of the process.
Working Examples in action
Brians Story - DRN
Brian is a 28 year old, single office worker earning a net monthly income of €1,700. He lives in rented accommodation and his rent is €620 per month. Over a period of time, Brian built up debts on his credit card totalling €9,000. He also has a credit union loan of €3,200 and has fallen into arrears with his electricity provider amounting to €800.
Brian’s only assets are a car worth €1,800, €200 in cash and some household furniture and appliances worth €3,500. Brian’s monthly debt obligations amount to €350. He recognises that he cannot pay his debts as they fall due and recognises he is insolvent. He might be eligible to seek a DRN and selects an Approved Intermediary.
Application
ISI
Circuit Court
DRN
Completion
David's Story - DSA
David is a 45 year old single parent with one child in Primary School. He is a self-employed electrician (sole trader) earning €3,000 net income per month. His income has significantly reduced in the last few years. David is renting a 2 bedroom apartment for €700 per month and also pays €500 per month for childcare.
At present, David has an unsecured personal loan of €50,000, credit card debts of €20,000 and as a sole trader owes his suppliers €10,000. David’s current monthly debt repayment obligations amount to €1,500. He is unable to pay his bills and meet his debts as they fall due and is considered insolvent.
David’s only assets consist of a car valued at €5,000, tools valued at €2,500 (both needed for his employment) and an antique valued at €2,500. David only has unsecured debts and therefore believes the most suitable arrangement for him is a DSA. David meets with Creative Insolvency Solution and provides full details of his financial circumstances so we can help deal with his financial position.
Application
Courts
DSA Proposal
DSA Grant
Solution
Completion
Solution Recap
Solution | Level / Type of Debt | Income | Assets | Required Intermediary |
|---|---|---|---|---|
* after Reasonable Living Expenses are deducted | ** Subject to certain exemptions | *** Subject to a cap of €3 million, unless creditors consent to a higher level | **** Whilst it is possible to apply for bankruptcy yourself, it is advisable to seek professional advice to assist you in the process. | |
Debt Relief Notice | Under €35,000 | Under €60 per month* | Max. €1,500** | Approved Intermediaries |
Debt Settlement Arrangement | Unsecured Only | No Max. | No Max. | Personal Insolvency Practitioner |
Personal Insolvency Arrangement | Secured*** and Unsecured | No Max | No Max | Personal Insolvency Practitioner |
Bankruptcy | Over €20,000 / Secured and Unsecured | No Max | No Max | None**** |
