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Most of borrower’s debt written off in first deal under new insolvency regime

The first debt settlement arrangement has been agreed today.

Image: Money via Shutterstock

Updated 10.29 pm

A BORROWER HAS had 70 per cent of a six-figure debt written off as part of the country’s first debt settlement deal under the new personal insolvency regime.

In what is the first debt settlement arrangement in the country since the new regime came into force earlier this year a deal has been concluded between the debtor and what’s believed to be a number of creditors.

It is understood that the debtor, based in the north west of the country, had an unsecured debt for a six figure sum and was unable to meet their obligations.

The agreement will see an undisclosed amount of the debt paid off over the next five years and the rest of the debt – believed to be 70 per cent of the total – will be written off.

The agreement, reached today and which does not involve mortgage debt, comes just over a month after a protective certificate was issued by Monaghan District Court.

Under the new regime when the certificate is issued the debtor and their creditors have up to 70 days to work out a deal with the help of the personal insolvency practitioner (PIP).

A spokesperson for the Insolvency Service of Ireland (ISI) said that the next step will involve the PIP sending details of the outcome of the case to the ISI which will eventually publish these details on its website.

Because the ISI has not yet received these details as yet the spokesperson said the service could not comment on the particulars of the case.

New Beginning’s Ross Maguire said this evening that it was a “positive development” and added: “We expect that a proper flow [of cases] will start coming through in the next couple of months.”

Two more protective certificates were issued in Dublin Circuit Court earlier this month, as TheJournal.ie reported last week.

Read: Two more insolvency cases heard under new regime as 7,500 contact ISI

Explainer: What does the Insolvency Service of Ireland do?

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Hugh O'Connell

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