Bronte
For the benefit of the users of this web site I have copied my "other" thread below. I did not say that "it's up to 40 years". I said it could be!
I would mention that Brendan Burgess highlighted the issue months ago on this site. All of the PIPs and people involved are fully aware of it. However, not all of the banks fully understand it, as they have not been trained on it yet.
It is a complex piece of legislation. The training course that Chartered Accountants Ireland have put on to train PIPs lasts three days! Some bankers have only attended a brief PowerPoint presentation given over breakfast!
Some of the banks have postponed training until all of the legislation and detailed Regulations have been published. They have also been obliged to delay setting their formal policies on the new procedures until the detailed Regulations are published.The Insolvency Service of Ireland are due to publish seven sets of detailed Regulations today. Whilst the iSI have consulted widely on the Regulations, they will have to be studied carefully to see if any significant changes were made from the drafts.
Section 103 (the claw back clause) is, in my view, a formalised Split Mortgage. What will shock some people is that some banks, in certain cases, may seek to extend the claw back period up to 30/40 years. If borrowers do not wish to have such an extension, then the option is bankruptcy.
Each PIA will have to be negotiated. In some cases it may be possible to exclude any claw back.