First insolvency case involving mortgage debt is heard
The first insolvency case involving a family with mortgage borrowings has come before the courts.
The case of the Leinster-based family with over €600,000 of borrowings came before Trim Circuit Court last week, according to RTE's Morning Ireland.
Until now, insolvency cases involving mortgage debt have not been heard before the courts.
This is the first case of its kind – coming under the new system established to tackle the country's personal debt crisis.
The outcome of the case will be closely looked at as borrowers in similar situations will be looking to see what kind of deal can now be achieved in a similar case.
Last week, the family involved was granted a protective certificate, allowing a total of 70 days to negotiate a deal with their creditors.
The certificate gives them a degree of insulation from those who they are indebted to.
The family's personal insolvency practitioner, Mitchell O'Brien, is confident of a successful deal and a significant write down of mortgage debt is expected.
The borrowers have mortgages, unsecured debt and Buy-To-Let property. A creditors’ deal is likely to happen before Christmas.