High Court approves deal for Cork widow to settle €2.4m debt

The approval of the arrangement will also allow retired shopkeeper Marian Phillips to remain at her home at Model Farm Road, Cork

The court heard that Mrs Phillips got into financial difficulties due to the high interest rates being charged on loans.

A Personal Insolvency Arrangement (PIA) has been approved by the High Court allowing a 70-year-old widow to deal with approximately €2.4m of debt.

The approval of the arrangement by Mr Justice Alexaner Owens will also allow retired shopkeeper Marian Phillips to remain at her home at Kenley Close, Model Farm Road, Cork.

The court heard that Mrs Phillips got into financial difficulties due to the high interest rates being charged on loans.

Her creditors include Start Mortgages DAC, which was owed over €2m, Cabot Financial, the Revenue Commissioners, a property management company, and a solicitors' firm.

Under the PIA, four buy-to-let residential properties — three in Cork and one in Clonmel, Co Tipperary — valued at just over €1m that the woman had owned are to be sold for the benefit of her secured creditors. The remainder of her debts are to be written off.

She will also enter into a State approved Mortgage to Rent/Social Tenancy arrangement in relation to her main private residence, a semi-detached, three-bedroomed house worth an estimated €345,000.

The PIA, which is to be 24 months in duration, was formulated by Ms Phillip's Personal Insolvency Practioner, Mitchell O'Brien who was represented in the proceedings by Keith Farry Bl.

Counsel told the court that the PIA was in the best interests of all relevant parties, was a better option than having her adjudicated a bankrupt, and would on its completion allow Mrs Phillips return to solvency while being able to remain in her home.

Mr Justice Owens approved the proposal.