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KBC writes down loan on homeby €223,000

a MAN has secured a €223,000 write-down on his €346,390 family home mortgage as part of a Personal Insolvency Arrangement (PIA).

The write-down, by KBC Bank, has been approved by one of the state's six personal insolvency judges, Judge Michael Meaghan.

At Ennis Circuit Court, Judge Meaghan approved the PIA for the 59-year-old married man.

Earlier this year, Judge Meaghan granted court protection to the man who had debts from the property collapse totalling €2.3m.

Judge Meaghan said at the time that the debt amount is the largest he has come across during his time working on personal insolvency cases.

Threshold

He said that the amount isn't far under the threshold of €3m on secured debt put in place by the Insolvency Service of Ireland (ISI)

The court protection allowed the stonemason's Personal Insolvency Practitioner (PIP) negotiate with secured and unsecured creditors who have voted 100pc in favour of the PIA at a creditors' meeting.

According to Judge Meaghan, the write-down of the mortgage on the man's family home comes with the proviso that he pay KBC Bank a dividend of €15,000 as an unsecured creditor.

Birthday

Judge Meaghan said that KBC Bank is to reduce the term of the mortgage by three years and three months that will coincide with the debtor's 70th birthday.

According to the PIA, the man is to pay a revised monthly mortgage payment of €1,200 on the family home for 10 years and three months up to his 70th birthday.

Judge Meaghan said that the man's natural stone products business collapsed last year and went into liquidation.

The judge said that due to the low income of the debtor, he is unable to engage in a multi-year payment plan.

Instead, the man will make available a lump sum to pay a dividend to unsecured creditors by selling all unencumbered property.

hnews@herald.ie


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