The first insolvency deal involving a family with mortgage borrowings was approved by creditors at a meeting today.
Mitchell O'Brien, a Dungarvan-based personal insolvency practitioner, said it showed the new system of dealing with personal debt was working.
Mr O'Brien confirmed that the deal would leave the borrower with a sustainable debt and all the creditors, including three large banks, supported the arrangement.
The case involved an owner-occupier mortgage and a buy-to-let loan.
The total amount of debt involved was €600,000.