Personal insolvency arrangement


Personal insolvency arrangement is the final debt settlement resolution process under the Personal Insolvency Act and is available to debtors with secured debt up to €3,000,000 and unsecured debt over a six-year period (with a possible one-year extension).


A debtor may enter into a personal insolvency arrangement only once.  Following discussions with the debtor and the completion of a prescribed-form financial statement, the insolvency practitioner will make an application to the Insolvency Service.  The insolvency practitioner will provide a statement that the information in the debtor’s financial statement is correct, that the debtor satisfies all the eligibility criteria, and that there is no likelihood of the debtor becoming solvent in the next five years.  The debtor will also provide a statutory declaration.


The Insolvency Service, if satisfied, will then issue a certificate to that effect and forward it, the application and any supporting documentation to the appropriate court.  The court will either issue a protective certificate or hold a hearing to gather further information or evidence.  The insolvency practitioner will notify relevant creditors of the protective certificate and proposed PIA and seek submissions.  If the PIA is approved, it must be sent to the Insolvency Service, who must notify the appropriate court.  Fourteen days will be allowed for creditor objections.  If no such objection is received or if such objection is not approved, the court must notify the Insolvency Service, which will register the PIA in the Register of Personal Insolvency Arrangements, following which it will come into effect.