Key Post Switching or getting a mortgage after a PIA or bankruptcy

My husband went bankrupt in 2017 and discharged from it in July 2018. We got a mortgage off bank of Ireland last September 2021 so 3 years after he was discharged. He would have got one earlier but the house he previously owned was not sold until then so that delayed the icb and ccr from being updated. We had terrible problems with the ccr and icb. But got there in the end. Hope this helps. There is life after bankruptcy. Any questions feel free to ask

Happy to offer our experience..we entered a PIA in 2020 for 12 months. Had our mortgage with a vulture fund and due to increasing variable rates we applied for a switch and were accepted by Bank Of Ireland in 2023. Also a separate credit union home improvement loan. Plenty of hope !

Anon2013 said:

Happy to offer our experience..we entered a PIA in 2020 for 12 months. Had our mortgage with a vulture fund and due to increasing variable rates we applied for a switch and were accepted by Bank Of Ireland in 2023. Also a separate credit union home improvement loan. Plenty of hope !

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Hi Anon , we are in similar situation- just finished a successful PIA and wondering about possibility of switching our mortgage from Vulture Fund , any advice would be greatly appreciated.

I have moved a few posts into this thread to highlight cases where people were able to get a mortgage or switch a mortgage after PIA or bankruptcy.

PIA and Bankruptcy. Two very different subjects with very different implications.

Further to my previous post (above), I would ask the OP or mods to review the title and some of the posts on this thread, as it is misleading. Specifically, with regard to Personal Insolvency Arrangements. I refer you to Roache v Start Mortgages DAC [2024] IEHC 666. Any individual considering entering into a PIA must be fully informed by their PIP of this case decision and its full implications.

If you have an issue with or concerns about a thread or posts then you should use the Report link/button/option at the bottom left of a post to flag these to the moderators.

Hi Surfinky

Could you spell it out please. Does it need to be two separate threads.

Someone who has been bankrupt can get a mortgage - BoI being the most flexible.

Someone who has come out of a PIA can switch lenders - But if there has been a write-down , they can't sell the house without triggering a clawback.

Is that the issue?

There is a whole range of issues, which I am somewhat surprised to find are not fully explored on these forums regarding the subject. It would not be for a lay man to spell these things out to experts like yourself. Suffice to say, the contents of the case above and the decision made by the Judge does spell out much, very plainly.

Taking just one of many issues which should be considered before entering a PIA is that aside from triggering a clawback where there is a write-down as you put it, the debtor having successfully completed their PIA cannot dispose of the property during the term of the clawback provision which is 20 years for any amount less than the amount set out in the so-called "Protective" Certificate, and where the PIP remained silent at the Creditors Meeting.

Brendan Burgess said:

if there has been a write-down , they can't sell the house without triggering a clawback

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it would be extremely helpful if this was pinned somewhere.
Its a useful thread that would be helpful to a lot of people considering their options.

Long and short you can't get rid of clawback. House sell it triggers in 20 years.

Remortgage elsewhere also triggers. This is what the case referenced above relates to.

You can reduce the impact of the clawback if you can demonstrate property improvements example attic conversion costing 40k impacting later redemption etc..

I have had cases where the write down was never subject to a clawback in agreement but after the legal case referenced it's hard to see a Creditor agreeing that again

So two ways to avoid it

1) Don't have it in first place(but it's a standard clause(

2) Sell in 20 years a day