Personal Insolvency

The Personal Insolvency Act 2012 introduces new concepts to enable debtors who are in genuine financial difficulties to write off some debts and get their affairs in order. The three new mechanisms are Debt Relief Notices (“DRNs”) which deal with unsecured personal debt up to a limit of €20,000, Debt Settlement Arrangements (“DSAs”) which cover unsecured personal debt over this level (with no ceiling) and Personal Insolvency Arrangements (“PIAs”) which are aimed at debtors with secured debts of up to €3m and other unsecured debts. The Act also amended Irish Bankruptcy law to make the bankruptcy process a more effective option in practice.

OHT provides advice for debtors, Personal Insolvency Practitioners and other parties on the options available in respect of DSAs and PIAs, and the tax implications of any proposal put forward as the basis for an arrangement with creditors.