Borrowers to write off loans after 3 months

A new insolvency arrangement with some of the State’s key banks could see homeowners walk away from unsustainable debts after just three months.

A number of lenders, including AIB, EBS and KBC, have agreed to allow indebted borrowers to write off their debts from both mortgages and personal debt such as credit cards or car loans after just three months.

In order for any debtor to take advantage of these deals they first have to qualify for Personal Insolvency Arrangement (PIA). The PIA application has to be made through a Personal Insolvency Practitioner.