A recent judgment finds a Personal Insolvency Arrangement (the PIA) is not permissible where the term of the restructured loan is likely to exceed the lifespan of the debtor.

The key facts

The PIA in question involved a mortgage term extension of 372 months (ie 31 years) which would have required the Debtor to continue making repayments until she was 98 years of age which is well beyond the Central Bank's recommended age of 70 years of age.

Summary

This matter related to a High Court appeal brought by two high profile debtors against a Circuit Court order made in favour of Tanager Designated Activity Company (Tanager) which allowed Tanager to enforce an order for possession notwithstanding the fact that a protective certificate was in place in respect of the debtors.

Two significant decisions in relation to personal insolvency applications were made recently in the Dublin Circuit Court and the High Court. The decisions relate to “locus standi”, which means who has the right to bring an application before a court.

Circuit Court case