RSM Farrell Grant Sparks Personal Insolvency Act th May 2013

Personal Insolvency Act

Insolvent? 3

< €20k 4

> €20k 5

Bankruptcy 6

Case Study – PIA Applicant 7 First Step – ASKING FOR HELP! Meeting :Be Honest, Be Open and Be Prepared Cost ; Commitment & Credibility

Case Study – PIA Applicant 8 Sean is a 50 year old Sales Manager who earns a monthly net income of €3,050. Married, 2 Children & wife does not take employment outside of the home. Has no secured Debt other than his family home. We assume he meets the eligibility criteria & agrees with the Insolvency Advisor’s proposed Personal Insolvency Arrangement (‘PIA’) solution.

Case Study – Sean’s Current Position – Assets & Debts 9 Sean’s loans are more than all the assets he holds:

Case Study – Sean’s Current Position – Income 10 Sean’s income is not able to meet his debts & run his household based on the minimum guidelines.

Case Study - Sean - Proposed PIA Solution 11 Sean’s Income after reasonable household spending allows a max repayment of €1,361 p.m. with the sale of land used to clear 6% of the outstanding unsecured debt.

Case Study - Sean - Proposed PIA Solution 12 To do this, the Advisor increased Sean’s loan by 5 years i.e. until he retires & can now repay a maximum mortgage loan of €235k. Creditors have agreed to not seek sale of the car and once the land is sold, Sean has no further means to meet any loans other than his mortgage meaning these debts will be written off following ISI agreement to the PIA.

Sean - Summary 13 SUMMARY NEXT STEP: Have a look at the ISI website – a number of very good case studies that might suit your particular situation & we will also be taking Q’s later. FINALLY REMEMBER – “this too, shall pass”.

About RSM Farrell Grant Sparks Three office locations – Dublin, Longford and Belfast 30 years in business in Ireland 26 partners and over 200 staff Ranked 7 th in league of Irish accountancy firms International reach and capabilities - independent member firm of RSM International Profile: “The annual FINANCE Accountancy Survey ranked RSM Farrell Grant Sparks as the most efficient accountancy firm in Ireland.” (source: Finance Magazine) About RSM International 6th largest network of individually owned and managed accounting and consulting firms in the world Internationally more than 32,500 staff including 3,000 partners Over 700 offices worldwide in over 90 countries 14

For further information about RSM Farrell Grant Sparks please visit our website: RSM Farrell Grant Sparks Molyneux House Bride Street Dublin 8 Ireland T +353 (0) F +353 (0) E Church Street Longford Co Longford Ireland T +353 (0) F +353 (0) E RSM McClure Watters Number One Lanyon Quay Belfast BT1 3LG Northern Ireland T +44 (0) F +44 (0) E Registered to carry on audit work and authorised to carry on investment business by the Institute of Chartered Accountants in Ireland (ICAI). Chartered Accountants Ireland is the operating name of ICAI. RSM Farrell Grant Sparks is a member of the RSM International network. The RSM International network is a network of independent accounting and consulting firms each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction. © RSM Farrell Grant Sparks