What are the key features of a PIA?
The key features of a PIA are;
- A Personal Insolvency Arrangement (PIA) is a statutory arrangement between an insolvent debtor and his/her creditors.
- A PIA can include secured and unsecured debts.
- A PIA can last up to 6 years (with a possible 12 month extension).
- A PIA can only be obtained once in a lifetime.
- A PIA can only be sought through a Personal Insolvency Practitioner (PIP).
- In order to come into effect a PIA must be formulated by the PIP, agreed by the debtor, approved by a qualified majority of creditors voting at a creditors’ meeting, processed by the Insolvency Service of Ireland (ISI), approved by the appropriate Court and details of it registered in a public Register maintained by the ISI.
- A PIA will protect a debtor and his/her assets from legal proceedings and other actions including enforcement of security during the period the PIA is in force, which could otherwise be taken by creditors.
- A PIA which is successfully completed will discharge the debtor from his/her unsecured debts which are subject to the PIA.
- A PIA which is successfully completed will discharge the debtor from his/her secured debts only to the extent provided for in the PIA. Subject to statutory requirements, secured debts can be discharged or restructured under a PIA.
- Details of a PIA including its successful will be recorded on a public register.