Clawback Insolvency

O

Otterbear

New Member
Messages
6
Please help me out with some advice on the Clawback in Personal Insolvency.
House was valued at €195k when we entered into PIP . New mortgage balance will be €185 when agreement closes in a few weeks . House now valued at €350k , if I sell how much is the Clawback ?
 
The clawback is the fly in the ointment of any PIA. Many PIPs and even MABS gloss over the full implications. Makes insolvency a harder sell.

Clawback will be the amount which is the difference between your written down mortgage and the amount of debt that was specified on your Protective Certificate. Gotta love they way they call it a "protective" certificate. At this stage now, you can see who it protects.

If you sell your house for more than the existing (post PIA) mortgage balance, clawback will be triggered up to an including the total debts specified on your PC.
 
surfinky said:
The clawback is the fly in the ointment of any PIA. Many PIPs and even MABS gloss over the full implications. Makes insolvency a harder sell.

Clawback will be the amount which is the difference between your written down mortgage and the amount of debt that was specified on your Protective Certificate. Gotta love they way they call it a "protective" certificate. At this stage now, you can see who it protects.

If you sell your house for more than the existing (post PIA) mortgage balance, clawback will be triggered up to an including the total debts specified on your PC.
Click to expand...
Thank you for your reply I am still confused as to how much the clawback will be if we were to sell out house . You are right we were never told the full implications when we entered into the insolvency agreement.
 
Any advice please on the Clawback in personal insolvency- this is my situation:
Successful PIA just completed
Original mortgage balance €417k
House value at time of entering into insolvency agreement €195
Write off €208k
New mortgage is €174
House is valued now at €380k
If I sell my house now for current market value of €380 how much is the clawback amount ?
Any advice would be most appreciated
 
It is very telling (and damning) that you have been through an entire insolvency process and remain confused on this very important detail in any PIA. It is further telling, the silence regarding your simple query on these forums. I am not an expert, but the clawback provision is intentionally vague. Given your situation, in very simple terms, the clawback applies to the write off amount. You can sell your house and clear your mortgage of 174k, but anything over that on sale will be clawed back, up to the amount that was written down 208k. This clawback applies for 20 years. It is a trap. Particularly if you are in negative equity.
 
You must log in or register to reply here.
Back
Top