Bank opposes Midland's woman's Personal Insolvency arrangement approval

The High Court has reserved its decision in an application by a woman for approval of Personal Insolvency Arrangement.

The application is by Rebecca Forde Egan, from Ballymorris Portarlington, Co Laois who has debts of approximately €600,000.

The proposed PIA would result in approximately €200,000 of that debt being written off.

Bank of Ireland, a secured creditor which is owed the bulk of the debt, opposes the approval of the arrangement on grounds including that it would be prejudiced by it.

The court heard that the bank advanced monies to Ms Egan, and her husband Larry in 2006 to refurbish a commercial property, and to buy a property in France, which was never purchased by them.

The court heard that Ms Egan works for the HSE in Dublin, is married and is the mother of three dependent children.

In 2008 she and her husband lost their jobs after his business collapsed.

She subsequently obtained work with the HSE.

However, Mr Egan was adjudicated a bankrupt in 2009, which he emerged from in 2014

Ms Egan's Personal Insolvency Practitioner (PIP) Daragh Duffy said that and that Ms Egan and her husband had always made efforts to co-operate with the bank.

Under the terms of the PIA Ms Egan will repay some €168,000 to the bank in monthly repayments over a six-year period.

The PIA also allows her to retain her interest in the family home.

Keith Farry BL for the PIP said that the creditors would do much better if the PIA is approved, rather than in a bankruptcy

 Bank of Ireland represented by Bernard Dunleavy SC argued that the PIA should not be approved on the basis that the bank would not be able to recover the debts to the extent that Ms Egan's means reasonably permit. 

The bank also said that it was unhappy with the amount repaid to it by Ms Egan in the two years prior to her begin granted a protective certificate in 2017. 

The application to approve the PIA came before Mr Justice Denis McDonald.

Following the conclusion of submissions from both sides the Judge said he was reserving his decision.