Case study AIB looking for Voluntary Surrender of PPR and "will do a deal" on shortfall

OK, This is a new one on me..............

DSAs need to be approved by a majority of Creditors

I don't understand why a Creditor might vote for a DSA arrangement that provides for immediate write off of debt when they could instead get a monthly installment for five years.

Maybe there are some cases where a Debtor has absolutely nothing to give
but that's usually not the case. Even in a case where a Debtor has nothing to give, I think the Creditors would want to keep the DSA live for five years
in case the Debtor has a change in circumstances.
 
Hi Importer

Again, we are speculating about creditors' behaviour and we don't know how they will react.

I would try to persuade a lender that a borrower who has been in MARP for a number of years and who has maximised the sales price of their home and who is currently on a low income and who is likely to be for the foreseeable future should not be held for 5 years in a DSA.

I hope that lenders will see the light. If they want people to opt for an agreed sale, there has to be some incentive for them to do so. I would guess that in a case like the current one, AIB will simply not bother to vote on the DSA. As they will have over 65% of the unsecured creditors, it will go through by default.

I may be completely wrong and AIB may veto the DSA if it does not include an instalment payment for the next 5 years.

However, if AIB vetos the DSA, then the OP can go bankrupt and be out, debt-free in three years. The bank can't veto the bankruptcy, unlike the DSA and the PIA which they can veto.
 
Brendan, regarding point 43 im not 100% on this yet but it seems a bankrupt person cannot work in a bank, its a simalar instance for solicitors and accountants I think. IM trying to get clarrification on this matter. AIB are also fully aware of this and I feel may hold this over me.
 
Introuble83 said:
Brendan, regarding point 43 im not 100% on this yet but it seems a bankrupt person cannot work in a bank,.
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A bankrupt would not pass the fitness and probity, but this only applies to the top layer of people, and, apparently, their admin assistants.
 
this is correct, however, certain contract terms under code of business conduct are also technically in breach as employees must ensure their own finances are kept in order, im not sure if this has ever been tested though
 
Brendan Burgess said:
I would try to persuade a lender

I hope that lenders will see the light.

.
Click to expand...

Isn't this the problem, that one has to rely on persuading a lender or hoping that the lender will do the right thing. I cannot see any lender letting anyone off after one year if they can force them to pay as much as possible over 5 years. What is the incentive for the bank. What cards does the borrower have other than refusing to sell.
 

I agree that it is a problem. And we won't know what happens until we see it in practice.

In general lenders are very concerned about secured lending and less so about unsecured lending.

I have argued that there should be a code for unsustainable mortgages where customers who engage in good faith in MARP for two years but their mortgage is unsustainable, that they should have their shortfall written off. I haven't got anywhere with this. Maybe when the lenders see the hassle of PIAs and bankruptcy, they will realise that they should incentivise people to sell their homes by agreement.
 
Brendan Burgess said:
I agree that it is a problem.
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Very worrying therefore, but as you said it's impossible to really understand until it's up and working. That's why I don't want to advice people on it right now until we knwo more about it. End of April now and no Pip's authorised yet. If it's anything like how the PRTB started it will be a disaster. And the professionals on here who are considering becomming Pip's think that it may not make sense money wise.
 
Interesting and conflicting views.

My advice is TODAY go for the option that leaves you to GET on with your life. Ongoing unsustainable debt will KILL you !!
Keep an eye on your PIP to ensure that the best option is ONE for you . Sorry for being a wee bit cynical,but all pips won,t be honest !!And historically any finance type provider has been poorly policed.
Don,t get too far into were the future takes you, sort today !!
 
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