John M. Lynch Ireland’s First Solicitor Personal Insolvency Practitioner to run Insolvency Information Week from 16th – 20th September

As the first solicitor registered as a Personal Insolvency Practitioner (PIP), John M. Lynch is running an Insolvency Information Week from Monday, 16th September to Friday, 20th September.  As part of Insolvency Information Week a free Personal Insolvency and Bankruptcy seminar will be held in Raheen House, Clonmel, on 19th September at 7.30pm-9pm.  Those who register for the seminar will receive afree first consultation from 16th to 20th September.

John M. Lynch, Personal Insolvency Practitioner and Principal at Lynch Solicitors said; “This is a once in a lifetime chance for people to recover from the Celtic Tiger hangover.  People who want to look at their options can now come to me as a Personal Insolvency Practitioner (PIP) and I will outline the legal and financial position.  My mission is to take an insolvent person through the process and help them become solvent.  I act as an intermediary between the debtor and the creditor and to find a workable solution for both.  The ISI will begin accepting applications from Personal Insolvency Practitioners (PIPs) on Monday, 9th September and I am currently working on new debt arrangements for clients.  The ISI has advised people to engage PIPs at the earliest opportunity to see if they qualify for an Arrangement.”

Under this new regime the debt options are a Debt Settlement Arrangement (DSA) and a Personal Insolvency Arrangement (PIA).  People who have mortgage arrears need to be aware that they need to be engaging with their lenders as part of the process.

“The PIA will apply specifically to mortgage holders and those with secured debt from €20,000 to €3 million and to unlimited unsecured debts. The PIP will make the application after a financial statement has been completed and 65% of the lenders must be in agreement for part of the debt to be written down.  All secured debts (except family homes) are treated the same.  The four main banks are expected to engage in the process and are due before the Finance Committee next month.” continued Mr. Lynch.   Lorcan O’Connor, Director of the Insolvency Service of Ireland, recently indicated that the average write down on unsecured debts for those entering personal insolvency arrangements is expected to be two thirds of what is owed.

There has been much speculation about Banks’ rights under the legislation to clawback mortgages that have been written off for up to 20 years.  John M. Lynch comments; “This has been part of the Act from the outset and has to be looked at in the context of the non-sale of a secured asset.  If the asset is sold that is the end of it. If the asset is not sold the Act kicks in and is valued for the arrangement. If the value is wrong then the corrected value (i.e. sale price) is adjusted.  It is not a charter for the Banks to keep someone insolvent.”

The Personal Insolvency legislation also introduced a Debt Settlement Arrangement (DSA) which covers unsecured debt of €20,000 or more.  The borrower will have to pay off a certain amount for up to 5 years and the balance may possibly then be written off.  All applicants must provide a written statement of their financial affairs to a Personal Insolvency Practitioner who manages any proposals to creditors.  Bankruptcy is the fourth and last stop debt option under the Act and under the new regime in Ireland the Bankruptcy period has been reduced to 3 years in most cases.

“For anyone who is insolvent – those that can no longer meet their payments as they fall due – the old adage of first in – first out applies and with that in mind the sooner these options are explored and used the sooner those who avail of them will be released from their debt and will find themselves able to prosper again”.  John M. Lynch continued.

John Lynch, Personal Insolvency Practitioner, is now working on new debt arrangements for clients and the ISI will begin accepting these applications on Monday, 9th September.  For anyone who is struggling with mortgage arrears or other debt contact John M. Lynch, Personal Insolvency Practitioner, atjohn@lynchsolicitors.ie or call 052-612 4344/Freephone 1800 750 850.

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