What is a protective certificate?
A protective certificate is a document issued by the Court which offers the debtor and their assets protection from legal proceedings by creditors while they are applying for a DSA or PIA. In general, a Protective Certificate remains in force for 70 days but it may be extended in limited circumstances.
What is a debt settlement arrangement?
A Debt Settlement Arrangement (DSA) is one of 3 debt resolution mechanisms for people who cannot afford to pay their personal debts. The Debt Settlement Arrangement applies to the agreed settlement of unsecured debts, for example, personal loans, overdrafts, credit card or credit union loans.
How does a PIA work?
A PIA may involve you making regular payments of agreed amounts to your Personal Insolvency Practitioner, who then distributes them to your creditors according to the terms of the PIA. If you keep to the terms of the PIA, the rest of your debt to your unsecured creditors will be discharged.
Do unsecured creditors get paid?
Your priority unsecured creditors get paid first and must be paid in full. If you don’t have enough funds to pay your priority creditors, the court won’t confirm (approve) your plan. Any amount that remains after paying your priority unsecured creditors will go to your general unsecured creditors.
Who prepares a personal insolvency arrangement?
You must apply for a PIA through a Personal Insolvency Practitioner (PIP). Call the MABS Helpline on 0818 07 2000, Monday to Friday from 9am to 8pm, to check if you are eligible for help and advice under the Abhaile scheme.
How do you verify a settlement letter?
Check the authenticity of the bank’s settlement letter by scrutinizing what is written on the same. Also, check whether the bank seal is affixed on the letter or not. In the absence of the same, you should avoid making the payment. Otherwise, hand the demand draft to the concerned banker.
How much will a bank settle for?
On older debt in collections you can expect to achieve a settlement rate of anywhere between 30% to 50% of the debt. On newer debts you may have to offer up to 70%.
How long does a PIA last?
A PIA can last from 6 months to six years, although sometimes depending on events it can be extended by a year if you have an emergency and have to take a payment break.
How do you declare personal insolvency?
How to File Insolvency Petition
- Debts amount to more than Rs. 500.
- The individual is under arrest or imprisonment in the execution of a money decree.
- There is a subsisting order of attachment against his/her property in execution of such decree.