# What Will Performing Investment Properties & Their Role Be In The Insolvency Bill?



## Alwyn (16 Mar 2012)

I have a performing investment property that is keeping myself and my other half financially afloat.  

Under new legislation, can we be forced to hand back the keys on the investment if we are under the PA arrangement?


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## Brendan Burgess (16 Mar 2012)

What is the "PA Agreement"? 

The legislation is only at the draft stage, so no definitive answer can be given at the moment. 

If you are speaking about a Personal Insolvency Arrangement, then your PIT will make a proposal to all the lenders about how to handle your loans. It will be a holistic approach.  You won't be able to just submit properties which are in negative equity and keep those in positive equity outside it.

Brendan


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## Wishes (16 Mar 2012)

Brendan Burgess said:


> The legislation is only at the draft stage, so no definitive answer can be given at the moment.Brendan



Brendan, is there any idea when this new legislation will come into play.  I have heard via the insolvency company in the UK that I have been dealing with that this will come to truition in the next 3/4 weeks.


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## Brendan Burgess (16 Mar 2012)

The legislation will be published before the end of April.

The government plans to pass it before the summer recess ( I doubt that they will) 

It will take some months at the very least to set up a personal insolvency office.

So at least 6  months and possibly a year.


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## Wishes (17 Mar 2012)

Thanks Brendan, just trying to get my head around all this.

The UK PIT has urged us to stay in our home and await the outcome, while on the other hand the Irish PIT have urged us to hand our home home back pre the legislation being passed by the Government.


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## Brendan Burgess (17 Mar 2012)

It's very hard to know.

If you desperately want to keep your home, you should stay in it. 

If it's just another asset and you don't mind moving, it's probably no harm to talk to the bank now about surrendering it. 

I have proposed that people who work with the banks should be facilitated by the legislation whereas those who just hand the keys back to avoid their debts should not be facilitated in any way. 

Any scheme will need the approval of the mortgage lender so you should try to reach agreement with them. 

Brendan


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## Wishes (17 Mar 2012)

Totally agree with your proposals.  I am fully complying with my creditors and work two jobs to keep the wolf from the door.  It's soul destroying when you hear "ah just hand the keys back, sure there's very little they can do".


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