High Court approves insolvency agreement which allows cancellation of €900,000 debt – The Irish Times
The High Court has approved a Personal Insolvency Agreement (PIA) which will see a man who ran his own retail business for many years write off around £900,000 in debt owed to a finance fund.
The 15-month PIA will allow Gerard Conlon (41) from Farndreg, Coxes Demense, Dundalk, Co Louth, to stay in his family home. The court heard Mr Conlon, who is married with one child, was self-employed and ran his own retail business for a few years. Due to a drop in sales, his company had to cease operations in 2019.
The PIA was formally approved at the High Court by Justice Alexander Owens. Mr. Conlan’s PIA was developed by his personal insolvency practitioner Alan Clarke, who was represented in court by Keith Farry.
The attorney said Mr Conlon entered insolvency proceedings over debts incurred after he and a relative borrowed money to finance the purchase of several properties between 2000 and 2008. Following the downturn economy, property values plummeted and his businesses suffered. Loans became unsustainable and properties were repossessed.
He is employed on a temporary basis, which is due to end early next year.
The court heard he owed financial firm Pepper Asset Servicing more than €1.1 million, including €170,000 for the mortgage on his home, valued at €130,000.
He owes Revenue €78,000 and other smaller amounts to unsecured creditors.
Under the terms of his PIA, he will continue to make payments on his mortgage on his two-bedroom house for the next 29 years and will make payments to Revenue. The PIA will also be financed by a payment of €8,800 from a third party. A property he owns in Dundalk will be handed over to Pepper.
Mr Farry said most of what is owed to Pepper, some €900,000, will be reversed as part of the arrangement. A small amount of money was provided to unsecured creditors. Mr Farry told the court there was no objection to the PIA being approved. He said creditors were doing better under the arrangement than they would if Mr. Conlon was declared bankrupt.