# Personal Insolvency Arrangement questions re Duration, Redundancy & Successful completion



## Neymar Senior (30 Aug 2019)

Hi All,

Hoping some of you can help with some information about the following points as I've been unable to find anything conclusive elsewhere.

I am a few months away from completing year 4 of 6 year PIA and have been wondering about the following as things are a bit uncertain in work so redundancy could be on the cards in the short to medium term.

1. Have there been any examples of 6 year term PIAs which were reduced by a year or 2 and if so what would the circumstances have been?

2. If a person is made redundant during the term of the PIA can the creditors get their hands on the lump sum so it is treated like a windfall or there is some protection against that happening? Also could a deal be struck to exit the PIA early by paying the remaining agreed balance as a lump sum or again would the creditors likely seek more and therefore make the last 4 years a wasted effort?

3. Upon successful completion of the PIA how soon after is the register updated to reflect this and a person can get on with living free from all the creditors with the agreed debt write offs confirmed as completed?

Thanks a lot,
N S


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## Futurelookin (2 Sep 2019)

Neymar Senior said:


> Hi All,
> 
> Hoping some of you can help with some information about the following points as I've been unable to find anything conclusive elsewhere.
> 
> ...



I don't know whether redundancy payment is treated as a windfall for the purposes of a PIA but I can tell you that the ISI register in my case was updated within 6 weeks of the notification by my PIP to them of the successful completion of my PIA which was an accelerated one - 12 months and involved a lump sum and a voluntary property surrender. 

If it were me and I could lay my hands on a lump sum payment (loan from family member for e.g.) at least equal to remaining payments I would approach my PIP and ask them to pitch it to the creditors in exchange for an earlier completion of the PIA if that is allowable under the terms. That way it could be done and dusted before the redundancy takes place and the family repaid with the proceeds of the redundancy payment.


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## Jim Stafford (2 Sep 2019)

Futurelookin said:


> If it were me and I could lay my hands on a lump sum payment (loan from family member for e.g.) at least equal to remaining payments I would approach my PIP and ask them to pitch it to the creditors in exchange for an earlier completion of the PIA if that is allowable under the terms. That way it could be done and dusted before the redundancy takes place and the family repaid with the proceeds of the redundancy payment.



Futurelookin's guidance is very practical. Essentially the guidance is to seek a "Variation" to the existing PIA, under which you would ask the creditors to vote on the Variation. Many Debtors are of the belief that seeking a Variation should not cost very much. Unfortunately, this is not the case, aa the PIP has to construct an entirely new proposal, notify creditors,  deal with numerous queries and hold the creditors meeting.  You should immediately approach your own PIP and seek their advice.

Jim Stafford


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## yrrab (18 May 2021)

This is not true for all pips.The cost of variation is within the agreedment and not an additional cost.


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