Chance of a fresh start for beleaguered borrowers
ONCE the Government introduced its new insolvency arrangements to help bail out financially overburdened householders, it quickly became obvious that there were some big drawbacks to the new schemes.
These centred around the cost of the new debt deals, the length it would take to exit them, and the limitations to be imposed on the family's living expenses over the term of the arrangement.
The Insolvency Service of Ireland has strict limits on what debtors can live on over the five to six years of a personal insolvency arrangement. A PIA is designed for dealing with mortgage debts and so-called unsecured debt such as a credit union loan.