We recently acted for a truck driver seeking a Personal Insolvency Arrangement (PIA) under section 115A(9) of the Personal Insolvency Act 2012. He lived in his principal private residence with his family, who were financially dependent on him. His mortgage lender was Pepper Finance DAC, and he also owed debts to the Revenue Commissioners.
The arrangement proposed:
• A 12-month PIA,
• Mortgage term to remain at 253 months,
• Payments capped during the PIA term,
• Mortgage to continue afterwards on a 3% variable interest rate,
• No write-down – Pepper to recover the full debt including arrears.
Pepper objected, arguing that the debtor was not insolvent, that the arrangement was unaffordable and unsustainable, and that it was unfairly prejudicial. Judge Meehan in the Dublin Circuit Court disagreed, confirming that the debtor was insolvent, finding the arrangement affordable and sustainable, and holding that there was no unfair prejudice. The Court also accepted that retention of the family home was proportionate in the circumstances.
The objection was dismissed, and the PIA was approved.
This decision reinforces that the Courts will uphold PIAs that are carefully constructed and realistic, even where creditors raise objections.
This case note is based on a published judgment. It is provided for information purposes only and does not constitute legal advice.
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Anthony Joyce
Anthony founded Anthony Joyce & Co. Solicitors in March 2004 in the oldest part of Dublin known as the Liberties. He is focused on building the practice in certain niche areas of law such as financial litigation and personal insolvency. Entrepreneurship is in his blood and he is on the board of a number of start-ups. If Anthony is not available he could be watching a SpaceX rocket launch, spending time with his two children or playing 5-a-side.
