Current trends show that many people in Ireland are at risk of losing their homes, as repossessions are on the rise. If you’re facing the threat of repossession, a Personal Insolvency Practitioner (PIP) can play a crucial role in helping you find a viable solution to avoid losing your home.
What is causing the increase in repossessions?
Several economic factors are contributing to the rise in home repossessions:
- Inflation
- The rising cost of living
- Aggressive actions of vulture funds
- High mortgage interest rates
Any one of these can lead to missed mortgage payments. When arrears build up, it becomes harder to catch up, often resulting in legal threats from lenders and potential repossession.
How can a PIP help?
A PIP is a licensed professional who assists people struggling with unmanageable debt (also known as insolvency). A PIP can help you explore insolvency solutions tailored to your situation. These solutions cannot be pursued without the involvement of a PIP.
Here’s how the process works when you contact us:
- Assessing your financial situation
We’ll review your debt type and level, income, expenses, and overall financial circumstances. This helps us determine whether you are insolvent and what you can realistically afford to repay. - Explaining your options
We will walk you through all available options clearly and thoroughly, allowing you to make an informed decision that suits your needs. - Setting up your chosen solution
If you decide to proceed, we’ll gather the required documentation, and your PIP will begin drafting your proposal. During this time, we will apply to the court for a Protective Certificate (PC), which protects you from legal action while your arrangement is being negotiated.
What solution can prevent repossession?
The solution that can help save your home is called a Personal Insolvency Arrangement (PIA). A PIA restructures your debts into affordable payments, allowing you to retain your home while resolving financial difficulties over a typical period of up to six years (though it can be shorter).
Your PIP will negotiate with creditors to propose a fair and realistic repayment plan that also allows for a reasonable standard of living.
Here are some of the ways a PIA can restructure your debt:
- Extend your mortgage term
- Reduce the outstanding mortgage balance
- Lower monthly payments
- Reduce interest rates
- Write off or reduce unsecured debts
Your PIP will manage the PIA throughout its duration, handling reviews, reports, and any queries. Upon successful completion, you’ll be solvent and able to move forward with a clean financial slate.
How can I afford a PIP?
If you’re applying for a PIA or facing serious mortgage arrears, you may qualify for a voucher under the Abhaile Scheme, which provides free financial and legal advice, including PIP services. We are an approved provider under this scheme, so don’t hesitate to reach out.
Additionally, all initial advice from McCambridge Duffy is completely free. We do not charge any upfront fees. If you proceed with a PIA, our fees are only paid if the proposal is accepted by your creditors. These fees are deducted from the affordable repayments you make to creditors. You will never receive a separate bill from us.
Final word
If you’re concerned about repossession, mortgage arrears, or unaffordable debts, speaking with a PIP could be the first step towards financial stability and peace of mind. Complete one of our our contact forms on our website for more information.
