Bank forced to accept debt deal on appeal
Published 12/02/2016 | 02:30
A bank's veto of a debt deal has been overturned, in the first appeal of a personal insolvency arrangement since the law was changed.
Mortgage servicing firm Pepper, acting on behalf of Danske Bank, had voted against a deal for a Carrickmacross couple.
The couple, who have two young children, were seeking debt relief of €150,000 on the family home mortgage.
Pepper/Danske had rejected a personal insolvency proposal put by insolvency practitioners at McCambridge Duffy.
An appeal heard yesterday from barrister Keith Farry BL, instructed by solicitor Bill Holohan, in Monaghan Circuit Court, saw the bank's rejection reversed, leading to a court-imposed write down.
The court heard the bank would be worse off if the couple were forced into bankruptcy.
Insolvency Service boss Lorcan O'Connor welcomed the outcome of the appeal, and said he hopes there will now be few future appeals, and more engagement by creditors.