Term Extension/P.I.A/Bankruptcy.

Income details
Net monthly (i.e. after tax) Income self: 2600
Income history: 18yrs employed Multinational
Net monthly income partner/spouse:0
Income history: Self employed Business unsustainable closed July 2012
Amount of child benefit received 390
Amount of Mortgage Interest Supplement received 0
F.I.S payment 400p/m

One adult family or two adult family. 2
Do you need a car for work or do you use public transport?. 1 car
Number of children 0- 2 years old: 2
Number of 3 years old children:
Number of 4 - 11 years old: 1
And a 20yrs old in third level education
Monthly childcare costs: 0




Home loan 230000
Lender: Irish Nationwide now in IBRC
Amount outstanding: 206000 inc arrears
Value of home: 130000
Interest rate: SVR
Monthly repayment 1050 due paying 850
Amount in arrears 5000

Summary of discussions and agreements with the bank.
We have been in Marp since Sept 2012 managed to get 2 3month Moratoriums
between Sept 2012-March 2014.Last week we got an offer of Term ext from 21yrs and 8mnts to 27yrs and a Bullet payment of 81000 at the end of term.Repayments would be set at 849p/m.


Credit Union
Amount of shares 2000
Amount of loan outstanding 9300
Monthly repayment 130
Term left 7yrs

Credit Union 2 spouse
Shares 1500
loan outstanding 3200
Monthly repayment 87
Term 4yrs
Both C.U repayments are restructured.

Other loans and creditors

Spouse
B.O.I Term Business loan 18350
20 p/m last 6mnts now up for review

Spouse
B.O.I finance H.P agreement for business machine. 13000.
0 paid. Mother in law went guarantor on this.

Spouse
Accountancy fees 3500
Claim noticed issued

Revenue
5000


How important is retaining the family home to you?
We would like to stay in the family home.


Any advice would be greatly appreciated on the best way forward here.
Should we take the Term Ext and try and deal with the other debt later?
Is there any point in going for a PIA if the banks are vetoing everything?
Would bankruptcy be a better option,the UK would not be an option for us.

Hi Folks
Anyone have a view on this we spoke to a P.I.P yesterday who suggested going the P.I.A route.I dont know how impartial this advice is.Its going to cost 1000 for 2 protective certs
and the P.I.P is looking for a contribution up front 500-1000 was mentioned.
Either way i have until next wed to get back to IBRC if i am going to accept the term extension and bullet payment.
Thanks in advance.

I dont believe you will get much better under a PIA.

From what you've posted your reasonable living expenses per month are probably somewhere around 1800.
This leaves you around 800 euro to pay your mortgage which is approximately what IBRC are requesting from you.

In my view you are not going to get any write downs based on these circumstances.
Two protective certificates will cost you 1000 euro. Presumably the PIPs costs will be at least 4000.

I think you have got a reasonable proposal from the bank already. If you go the PIA route my guess is that the
bank will veto.

I think what you need to do is a DSA not a PIA. Accept the banks proposal on your mortgage (secured debt) and then
have the spouse only enter a short DSA to purge his / her unsecured debt. The spouse may need a small lump sum to offer the unsecured
creditors in a DSA. The OP should try and keep her own credit union loan going as you may need the CU again in the future.
A protective cert for a DSA will cost 200 euro and you should get a reasonable fee from a PIP for a short DSA.

Do you still have the "business machine" that the MIL went guarantor for?

If you do you could seek their permission to sell it and use the proceeds as a full and final settlement. This would clear the way for a DSA and get the MIL off the hook.

I'd avoid bankruptcy if I was you. You would likely lose your house. As the other poster said your reasonable living expenses less your income leave what the bank is asking for. You won't get much better than that.

Thanks for the replies,i would be happy enough to deal with the bank on the mortgage if i could get the my wife's business debt dealt with.
We still have the business machine not sure what we could get for it but i dont think the bank will deal on this loan as the MIL has savings in same bank close to what is owed.
Would revenue stay outside a PIA/DSA process?

anderson07 said:

Thanks for the replies,i would be happy enough to deal with the bank on the mortgage if i could get the my wife's business debt dealt with.
We still have the business machine not sure what we could get for it but i dont think the bank will deal on this loan as the MIL has savings in same bank close to what is owed.
Would revenue stay outside a PIA/DSA process?

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It'd be worth asking what they'd be willing to take as a full and final settlement for the machine. Might be handier for them rather that chasing the MIL. If your gone out of business and still owe money on it there's no justification for keeping it. They may think your doing something on the side by keeping the machine.

If you are being honest with revenue I see no reason for them to stay out of the process. I have heard informally that they are willing to engage with process. I think there's a dedicated email address in revenue for insolvency questions.