Man gets €223,000 mortgage write-down

A Co Clare stone-mason has secured a €223,000 write-down on his €346,390 family home mortgage as part of a Personal Insolvency Arrangement (PIA)

The write-down by KBC Bank has been approved by one of the State’s six personal insolvency judges, Judge Michael Meaghan.

At Ennis Circuit Court, Judge Meaghan approved the PIA for the 59-year-old man. Earlier this year, Judge Meaghan granted court protection to the man who had debts from the property collapse totalling €2.3m.

Judge Meaghan said at the time that the debt amount is the largest he has come across during his time working on personal insolvency cases.

The court protection allowed the man’s Personal Insolvency Practitioner (PIP) negotiate with secured and unsecured creditors who have voted 100% in favour of the PIA at a creditors’ meeting.

The write-down of the mortgage comes with the proviso that he pay KBC Bank a dividend of €15,000 as an unsecured creditor. KBC Bank is to reduce the term of the mortgage by three years and three months.