€344,000 debt halved after judge rejects PTSB appeal
A personal insolvency arrangement (PIA) involving a €343,785 mortgage debt being written down by more than half has been approved by the High Court for a woman who ran into arrears due to her husband's gambling.
Permanent TSB had objected to the PIA, insisting the proposed write-down of some €343,785 to €160,000 - the current agreed market value of the woman's home - was "draconian".
Mr Justice Denis McDonald said the woman, a public servant in her 40s with net monthly earnings of some €2,900, is separated from her husband and lives with their teenage daughter in the family home.
She had said in a sworn statement her ex-husband moved to the UK in 2015 and makes no contribution towards mortgage repayments or child maintenance.
She said her husband developed a gambling addiction and borrowed €7,000 from "loan sharks" to place bets. She fell into arrears with repayments and incurred other debts.
PTSB took proceedings against her in the Circuit Court and her Personal Insolvency Practitioner proposed a PIA under which the mortgage debt would be reduced to €160,000.
The €173,785 balance would be treated as unsecured debt and PTSB - and a credit union owed €3,752 - would each get a dividend of 8pc. At the end of the PIA's six-year term, the rest of the unsecured debt would be written off.
Mr Justice McDonald, in a recently published judgment, held the PIA did not unfairly prejudice PTSB.