Unsecured debts written off in PIA of €175,000

Our client had set up in business as a sole trader and required loans for stock and cash flow. Due to the downturn in the economy, from 2009 the debts of the business were unsustainable and the client had to close the business leading to debts with Revenue and suppliers. The client also had 3 mortgages with 2 different banks totalling €730,358 including 2 buy to lets properties.

We proposed a PIA with the banks and other creditors where he retains his principle private residence, the buy to let mortgage was restructured and the third mortgage was put on interest only.

The repayment amounts were affordable for the client over 5 years. Amounts owed to unsecured creditors of €175,000 were written off.