How schemes affect personal possessions

HOW does each of the personal insolvency schemes impact on your home, vehicle and pension?

* Is your home at risk?

DRN — The act does not impose any requirements on you with respect to your home.

PIA — The PIP, when formulating the proposal for a PIA, in so far as reasonably practicable will ensure that you are not required to sell or move out of your principal private residence.

DSA — The DSA is for unsecured debts so you should be able to keep your principal private residence.

* Is your vehicle at risk?

DRN — You are entitled to keep your vehicle if it is not valued at more than €2,000. There are exceptional circumstances where you may be eligible to keep a vehicle of higher value e.g. where you or a dependant has a disability and your vehicle has been modified for use in that regard.

PIA — A PIA may not require you to sell your assets if they are reasonably necessary for your business or employment. The PIP will discuss with you whether your vehicle is suitable and necessary to meet your needs. The PIP may suggest that you sell or downsize it.

DSA — A DSA will not require a debtor to sell assets that are reasonably necessary for the debtor’s business or employment. The PIP will discuss with you whether your vehicle is suitable and necessary to meet your needs. It may suggest that you sell or downsize your vehicle.

* Is your pension at risk?

DRN — Any pension arrangements you have will be taken into account at application stage when the AI is considering your eligibility for a DRN. However, if you are deemed to be eligible and receive a DRN, the arrangement will have no further effect on your pension, unless your pension income increases during the supervision period.

DSA — Ongoing pension income receivable by you, or an entitlement to a pension lump sum or income in accordance with the tax code, will be treated as an asset or, as applicable, income for the purpose of a DSA. The terms of the DSA may provide for payment of some or all of that pension lump sum or income to creditors during the DSA period. Your pension fund will be excluded from any DSA arrangement if it is a “relevant pension arrangement” for the purposes of the Act. Approved Retirement Funds may be included in a DSA. Where the PIP or a creditor considers that you have made excessive pension contributions within three years prior to application for a Protective Certificate, an application can be made to the court to recover these contributions for distribution to creditors.

PIA — Ongoing pension income receivable by you, or an entitlement to a pension lump sum or income in accordance with the tax code, will be treated as an asset or, as applicable, income for the purposes of a PIA. The terms of the PIA may provide for payment of some or all of that pension/lump sum or income to creditors during the PIA period. Your pension fund will be excluded from any PIA if it is a “relevant pension arrangement” for the purposes of the Act. Approved Retirement Funds do not fall into this category and may be included in a PIA. Where the PIP or a creditor considers that you have made excessive pension contributions within three years prior to the application for a Protective Certificate, an application can be made to court to recover these contributions for distribution to creditors.