First, the debtor is required to provide PIP with full publicity of its financial situation. Upon review, the PIP proposes an agreement as much as possible. If recommended, the debtor can continue with the pia request and designate the PIP to act on its behalf. For the debtor, mandatory financial statements are then drawn up, containing the most important information about a debtor`s finances and indicating his insolvent status. It must be fully supported by appropriate financial documents, such as payslips, bank statements, etc. The debtor, in the presence of witnesses, makes a legal statement to confirm that the prescribed financial statements are accurate and correct and complete and signs the additional documents necessary to accompany the declaration to apply for a certificate of protection. The full application is addressed to the Insolvency Service of Ireland (ISI). A series of measures announced on May 13, 2015 included changes to the personal insolvency system. All of these changes are now in effect. This includes a judicial review when a mortgage lender rejects the borrower`s proposal for an IAP. Debt relief contracts (DROs) are another type of insolvency available to low-income people in England and Wales. Here is a general overview of the possibilities of personal insolvency.
If you go to a debt management company for an IVA, you will know how much they calculate before making your decision. A debt management company should become more expensive because it collects a fee in addition to the costs of the judicial administrator. Each insolvency option has a different application process. In some cases, you need a government-approved money advisor to apply, and we can help. If you have accepted your PIP`s proposal for PIA, the PIP must convene a meeting of creditors. If there is only one creditor, they can write to PIP to announce an agreement or refusal. Creditors vote on whether or not to accept the proposed plan. Each vote is proportional to the amount of debt owed to that creditor. Creditors who represent 65% or more of the value of the total debt, both secured and unsecured, must vote for the agreement to be accepted. In addition, more than 50% of your secured creditors and 50% of unsecured creditors must vote for it. The insolvency solutions available to you vary depending on where you live in the UK. Under the original legislation, you could only obtain an IAP with the agreement of a certain majority of your secured and unsecured creditors – see the main elements of an IAP below.
However, as mentioned above, you can now apply for a judicial review if a mortgage lender rejects your personal insolvency claim. For more details, see “Creditors` Assembly” below. The insolvency department regulates insolvency in England and Wales. In Scotland, the bankrupt accountant manages the private insolvency process and registers corporate bankruptcies on behalf of the Scottish Government. The IAP has been designated as an insolvency procedure that can benefit from cross-border recognition. This means that a debtor who can benefit from an IAP will receive the same protection against the creditors of most other EU countries they receive in Ireland, subject to and in accordance with Regulation (EC) 1346/2000 (pdf) updated by Regulation (EU) 663/2014 (pdf). An individual voluntary agreement (IVA) is an agreement with your creditors to settle all or part of your debts. You agree to make regular payments to a court administrator who shares this money between your creditors.