# What happens if I have a lot of equity in my PPR?



## Brendan Burgess (5 Feb 2012)

Under the Personal Insolvency Arrangement, I cannot be required to sell my home. I can be required to sell other properties. 

So if I have a home and a portfolio of invesment properties, I should divert all the rent and my other income to paying down the  mortgage on my home.  I should string out the legal action as long as possible and then get an additional  three months from the Protective Certificate. 

Alternatively, if one of the investment properties is in positive equity, I could move into it as my PPR and keep it.


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## Bronte (9 Feb 2012)

Well would people move to a far worse house, so what if they did?  Most people tend to live in the better house (size, location, quality of built), most investments are for a different market and a lot of them are apartments so I don't seem it as a significant percentage.


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## Brendan Burgess (13 Feb 2012)

Hi Bronte

There is some point in what you say. If someone trades back to reasonable house, that is a good thing. 

But it's not a good thing that people who invested in property can escape their liabilities through keeping the house in positive equity and getting rid of the houses in negative equity.


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## 44brendan (13 Feb 2012)

So lets say that I avail of a PIA and move into the property with positive equity. I have a large number of creditors. Does entering the PIA debar these creditors from taking out a judgement against me?  I can't be forced to sell my PPR. So when I emerge from the PIA, will I still have the full quity in this property with no ability of former creditors to touch the equity in this property?


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