TryingHard
Registered User
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- 17
No point in entering a defense unless you have a genuine dispute over the amounts claimed. Judgment will be granted in default. Forcing a sale of a PDH on the basis of a JM is theroitically possible but unbelievable complex and expensive. I.e. process of obtaining a well charging order and order for sale would generally preclude most JM holders.
Yes the JM will become statute barred after 12 years. Regard this process as a standard by Crosskerry's (who generally work on a no foal no fee basis for these smaller debts) to try and force some kind of settlement offer from you!!
Yes, that's the plan. We pay the mortgage come hell or high water and just keep telling the others we are sorry but there's nothing left. Can I be reasonably confident that no unsecured creditor would attempt to force a sale for those (relatively) small amounts even if we do return to some measure of positive equity?Given your situation you now need to focus on paying your mortgage. I would generally ignore existing other debt as realistically the creditors have no options other than obtaining judgments.
There is only €45k in negative equity and €60k in unsecured debt. AIB would have to write off around €120k of debt to be sure of the PIA going through. That would not be in their interest.
Under the MABS/IBF Protocol, the unsecured bank creditors are supposed to agree to write off unsecured debt to make the secured debt sustainable.
Can you list out the unsecured creditors and the amounts owed.
If 65%(?) are owed to other banks, then they might approve a DSA and write off all the unsecured debt.
Brendan
There is no ideal solution here for you. However your options are limited by available funds.
1. You are on an ARA arrangement with your mortgage. Under MARP guidelines and as I'm sure IMHO have advised this, you need to prioritise meeting this payment schedule. The alternative is that you are removed from MARP and risk losing your home. Also under MARP the ARA approved (new repayment schedule) should not be at a level where repayments are such that you are left with income below the insolvency guidelines level. This income level would not be sustainable in the long term and you may need to revisit the payment agreement.
2. You are currently living frugally with no excess funds available to pay creditors. As I said previously a PIA is therefore not appropriate as you are not in a position to meet any monthly level of payments to creditors. The mortgaging bank will not agree to any proposal which involved paying funds to external creditors.
3. You can look at the bankruptcy option. This may be more applicable for your circumstances as the current ARA arrangement means that you are living below insolvency guidelines. Bankruptcy will cater for all your unsecured loans and in addition may allow you to keep your PDH. I'm assuming that this was discussed with IMHO.
Given your circumstances I see no benefit in taking funds from a relation to clear unsecured borrowings. There is virtually no risk of any JM being enforced and it is quite likely that many of the creditors will simply WO the amount due when they see your financial circumstances. Make sure you send them all an income statements and statement of assets when stating your inability to repay.
I am struggling to see how he would keep his house in a bankruptcy. Brendan
Thanks, I had forgotten that. In fact, I had summarised all the options here:
http://www.askaboutmoney.com/threads/what-happens-a-jointly-owned-family-home-in-bankruptcy.184827/
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