Property in the Midlands to be sold in deal to clear €3 million debt

The High Court has approved a Personal Insolvency Arrangement (PIA) that will see a property in Mountrath put on the market to help clear a mulit-million debt.

The High Court decision allows the write-off of over €3m of debt a Dublin man owes to financial institutions for a payment of just over €8,000. 

Mr Justice Alexander Owens approved the PIA in respect of Patrick Reilly, aged 60, who under the terms of the agreement will put up for sale two properties in Dublin and the Laois, that he has an interest in.

The PIA will also allow Mr Reilly to retain his family home at Clanree Road, Donnycarney in Dublin 5.  Under the terms of the PIA, which is to be 24 months in duration, the mortgage over the family home, is to be restructured and extended.

Mr Reilly will also make a total payment towards his unsecured debts of just over €8,000. 

He owed money to financial institutions and funds including Mars Capital Finance, Pepper Finance, Bank of Ireland, Start Mortgages, AIB as well as trade creditors. 

On Monday the High Court heard that Mr Reilly became insolvent and was unable to pay his debts as they fell due. 
As a result he sought the advice of Personal Insolvency Practioner (PIP) Eugene McDarby and entered into the personal insolvency process.  

Seeking approval of the scheme counsel for the PIP Mr Keith Farry Bl told the court that Mr Reilly's creditors will do "slightly better" under the proposed PIA compared to if the applicant was adjudicated a bankrupt. 

Under the PIA the unsecured creditors will receive a dividend of just 0.07% of what they are owed. There were no objections to the proposal to approve the PIA. 

After considering the proposal Mr Justice Owens said it was just and equitable that the PIA, which when completed will see Mr Reilly return to solvency, be approved.