1. Legal Aid Board: Solicitors Panel for Abhaile; Training Day Lorcan O’Connor, Director
30 May 2017

2. Overview of ISI Solutions Overview of Abhaile Scheme to date
CONTENT OF PRESENTATION
Overview of ISI Solutions
Overview of Abhaile Scheme to date
Overview of Personal Insolvency Arrangements

3. Overview of ISI Solutions

4. Quote from debtor helped by DRN:
FOUR ISI SOLUTIONS
Debt Relief Notice (DRN)
A solution for people with:
Low income
No mortgage
Very few assets.
This solution allows for complete write off of debts up to €35,000 and can be applied for, at no cost, through an Approved Intermediary - many of whom are based in MABS.
Quote from debtor helped by DRN:
“All I’d say is, if you’re struggling with debt, take a deep breath and get in touch with those who can help. Debt should never become a worry and if it is, there is light at the end of the tunnel.”

5. Debt Settlement Arrangement (DSA) Quote from debtor helped by DSA:
FOUR ISI SOLUTIONS
Debt Settlement Arrangement (DSA)
A solution to problem debts that have built up outside of a mortgage, such as:
- credit cards
- personal loans
- overdrafts.
This solution features write-down and write-off of debts that cannot be repaid. It can be applied for through a Personal Insolvency Practitioner (PIP), professionals based around the country that are regulated by the ISI.
Quote from debtor helped by DSA:
“There are no more phone calls, letters or worries about knocks to the door. This is a new beginning. I would highly recommend getting in touch with a PIP.”

6. Personal Insolvency Arrangement (PIA)
FOUR ISI SOLUTIONS
Personal Insolvency Arrangement (PIA)
A similar solution to the Debt Settlement Arrangement but it also includes mortgage debt and, where possible, allows a person to keep their home.
Again, this solution is available through a Personal Insolvency Practitioner (PIP).
Quote from debtor helped by PIA:
“After talking to our PIP for just half an hour, he was able to fix it, it was going to be sorted. You would think “What’s the catch?” but there is no catch. We are now out of debt. And speaking to the PIP was the answer.”

7. The bankruptcy term is now 1 year.
FOUR ISI SOLUTIONS
Bankruptcy
The solution for people for which the alternatives above are not suitable.
The bankruptcy term is now 1 year.
Quote from debtor helped by bankruptcy:
“Don’t leave it ‘til the last minute. Organisations like the ISI are there to help you.”

8. Benefits of a Statutory Arrangement
COMMENTARY
Benefits of a Statutory Arrangement
Negotiated by experienced regulated professionals
Protection from creditors
No surprise changes / Peace of mind
Reasonable standard of living guaranteed
Sustainable
Returned to solvency
Popular criticisms of ISI arrangements
Creditors can veto any arrangement proposed
Your personal details will be available on public registers
PIPs cost money
Your credit rating will be damaged

9. CREDIT RATING
James Treacy, CEO Stubbs Gazette has said that “ we have recently reengineered our own consumer credit scores...so if a debtor enters into a Personal Insolvency Agreement or a Debt Settlement Arrangement and makes all of their payments on time, after 24 months their credit score will begin to repair. Their score will continue to improve over the next 3 to 4 years until at the very end of the arrangement their credit score will have been rehabilitated entirely.”

10. Overview of Abhaile Scheme to date
(Based upon period July ‘16 – March ’17)

11. ABHAILE - LEVELS OF DEBT

12. ABHAILE - REASONS FOR BORROWER ENGAGEMENT

13. ABHAILE - EXTENT OF ARREARS

14. ABHAILE - OUTCOME / RECOMMENDATION

15. Overview of Personal Insolvency Arrangements

16. PIA Case Before High Court
CIRCUMSTANCES 22 Year Mortgage €285,000 Value of Property €105,000 Other Debts €77,000 PIP PROPOSAL Write off €165,000 (live mortgage €120,000) Extend mortgage term by 6 years 1 year reduction in int. rate to facilitate dividend of 2% to Unsecured Crs BANK RESPONSE Write off €15,000 Split €135,000 – Live Mortgage €135,000 – Warehouse, 0%, Lifetime Tenure

17. OVERVIEW OF PERSONAL INSOLVENCY ARRANGEMENTS

18. OVERVIEW OF PERSONAL INSOLVENCY ARRANGEMENTS

19. OVERVIEW OF PERSONAL INSOLVENCY ARRANGEMENTS