Key Post Voting rights on a PIA

I have found it very difficult to get a clear explanation of these, so I have written this. Is it correct?


Here is the Explanatory Memorandum of the Act

[FONT="]Section 108 [/FONT][FONT="]. Subsection (3),[/FONT] [FONT="]provides that, in respect of secured debt, where the market value of security held by a secured creditor is determined to be less than the value of the debt due to the creditor and the proposed Personal Insolvency Arrangement provides for ... part of that secured debt to (i) rank equally with, and abate in equal proportion to, the unsecured debts ... then, the relevant portion of debt in excess of the market value of the security shall...not be considered as secured.[/FONT]

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So it depends on the proposal.



Voting rights of mortgage lender

This is backed up by the voting rights in Anthony's case in the PIA's Scenarios pack

Anthony has a mortgage of €120,000
His house is worth €60,000
The PIP proposes to write €50,000 off the mortgage

The mortgage holder's voting rights are as follows:


So the mortgage lender's voting rights are €50,000 in the unsecured pot

Should the documents (the certificate of application for personal insolvency) showing the results of a declined PIA be stamped by a court or be signed by all the Creditors?

If a PIA is declined the PIP simply emails the Case Management team at ISI that it has failed, and he emails the creditors notifying them that it has failed. The Protective Certificate is lifted, and creditors may then take legal proceedings or enforce judgments.

If the PIA is successful, then the PIP completes a voting certificate, and emails it (with accompanying documents) to ISI who then forwards everything to the appropriate court for approval. Creditors have 14 days to object.

Jim Stafford