If a debtor fulfills all obligations under the IAP, the agreement is considered complete. After the creditors close, the PIP completes the processing of the remaining debt balances: unsecured debt balances are depreciated, while secured debt balances are reduced in accordance with the PIA agreement. The PIP coordinates the withdrawal of the debtor`s information from the register of private insolvency contracts within three months, making the debtor solvent. Following formal court approval and notification to ISI, debtors are required to make payments to PIP, which in turn distributes payments to creditors in accordance with the agreements. A PIA has a lifespan of six years. 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. In addition, a debtor must not have emergency agreements, bankruptcy or 25% or more of his total debt in the last six months. 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 private insolvency agreement applies to the liquidation and/or restructuring of secured debts over a six-year period, up to a total of 3 million euros (as well as unsecured debts). The ceiling of 3 million euros can be increased in accordance with your secured creditors and the 6-year limit can be increased to 7 years in certain situations. It is a formal agreement with creditors that will write off some unsecured debts and restructure all remaining secured debts, while the person will remain in their home if possible. A Personal Insolvency Agreement (PIA) is a legal mechanism in Ireland for people who cannot repay their debts when they mature, but who wish to avoid bankruptcy. [1] The agreement is one of three alternatives authorized under the Irish Private Insolvency Act 2012; The other two debt repayment (DSA) and debt cancellation (DRN) agreements are the other two agreements. A PIA is a legal agreement between a debtor and its creditors, placed and managed by a private insolvency administrator (PIP). A PIA usually lasts six years and must include both unsecured and secured debts. However, the personal insolvency contract does not affect any secured creditor (in terms of managing their security).