A PIP is qualified and authorsied by The Insolvency Service of Ireland (ISI) to act on your behalf if you are insolvent (unable to fulfill your debt obligations) and wish to enter into some sort of Insolvency Agreement with your creditors, such as a PIA (Personal Insolvency Arrangement) or DSA (Debt Settlement Arrangement). You cannot avail of an Insolvency Solution without engaging the services of a PIP.
At McCambridge Duffy we have 5 professionals in-house who are all authorised to act as Personal Insolvency Practitioners by the ISI. Many Insolveny firms charge for PIP advice, however we do this for free. Fill out the form for a free, confidential consultation about your debts or mortgage or keep on reading to find out more about the role of a PIP and what they do.
A PIP will advise you on your financial situation and guide you through the Insolvency Process. They will discuss the various Insolvency Solutions that are now enshrined in the law under the Personal Insolvency Act 2012. These solutions include the DSA and the PIA mentioned above as well as the DRN (Debt Relief Notice) and also Bankruptcy (which is usually seen as a last resort solution). The PIPs job is to make you aware of all options available, including your best option and then guide you through the process from start to finish.
When you are in difficulty with your mortgage and debt repayments, the best thing to do is seek advice and gather lots of information on what your options are. The first step is to arrange a meeting with an advisor or a PIP, bringing details of your debts, assets, living expenses and income as well as back up documentation relating to creditors, mortgage (if applicable), missed payments and arrears. The PIP will tell you what to bring. At the meeting you can ask questions just as the PIP will do.
Do not pay for advice or consultation! There are plenty of companies and places that will offer quality advice for free, whether it is advice with a PIP or a Debt Advisor If you are suitable for any Insolvency solution, a good PIP will explain all the ins and outs of how it works and what the process of application is. Do not be forced into anything from a PIP. You are entitled to give the the options your own careful consideration.
If you decide to proceed with an Insolvency Solution then the PIP will be responsible for working out what the best approach is to take with your solution. They will draft your Prescribed Financial Statement (PFS). The PFS summarises your assets, liabilities, income and expenditure. The PIP will advise as to what debts will be included and not included in your insolvency solution. You must make a declaration that everything is true and accurate in the PFS. The PFS allows the PIP to determine which, if any of the solutions are suitable for you. They will explain all options to you and make a note in writing of what they think is the recommended course of action for you to take and that in their opinion everything in the PFS is true and accurate.
At this stage if all parties are happy including both you and your PIP, then the PIP will submit your application to the ISI and the court. If the ISI and the court are happy with your application then they will grant your Protective Certificate. A Protective Certificate stops your creditors from taking any legal proceedings against you. A Protective Certificate usually lasts for about 70 days but it can be extended in some circumstances. When a Protective certificate has been issued, another cannot be issued for atleast 12 months.
After the Certificate has been issued, your PIP will engage with your creditors during the preparation of your proposal culminating in a meeting of your creditors to decide whether they accept your proposal for your solution. Proposals may vary hugely but they usually contain an element of debt write-off as well as your offer of repayment of the balance of your debt. Atleast 65% must vote in favour of your proposal in order for it to be approved. The ISI and court carry out a final review. Once approved your Insolvency Arrangement will become legally binding and you can start your new agreed repayments.
The final role of the PIP is to supervise your arrangement for the agreed term of five or six years, ensuring you make the payments you have committed to and distributing these funds to creditors as agreed while retaining funds as also agreed to cover your PIP’s fees and expenses. Your PIP’s post approval duties are extensive with a high level of oversight and administration. The operation of the arrangement is reviewed regularly and reports issued to creditors at least annually. If the arrangement needs to be significantly varied due to changes in your financial circumstances then the PIP will convene further meetings of your creditors and report the outcome to you, your creditors, the ISI and the court.
On successful completion of your arrangement, your PIP reports to ISI, to your creditors and to you that all the terms of your arrangement have been complied with and all dividends to creditors have been distributed. You are now debt free and can start to repair your credit file and resume normal financial activities.
You will have a case manager for the duration of the solution. On completion of the solution you will be discharged from your unsecured debts. And remaining debts will be cleared allowing you to start over. If you are in a PIA, you may be released from a secured debt or the secured debt may continue to be payable (depending on the terms of the PIA).
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