Personal Insolvency - What's Involved?

Aidan O'Byrne (PB00203) is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner.

The Personal Insolvency Act, 2012 was enacted to create a framework to deal with the extensive amount of unsustainable personal debt existing the country.

The table below details some of the issues relating to the process.

OBK does not act in respect of Debt Recovery Notices (DRN). These are handled by Approved Intermediaries such as MABS ( or FLAC (


Frequently Asked Question DSA PIA Bankruptcy
What debts qualify ? Unsecured Only Secured < €3m Unsecured All Debts > €20k
Do I have to eventually pay all the debt ? No No No
Is Interest Frozen during arrangement period ? Yes, if approved Yes, if approved Yes
Do my creditors have to agree to the proposal ? Yes, 50% Yes, 65% in total & at least 50% of Secured & Unsecured No
Are all debts included ? No, secured, excluded & excludable debt not No, excluded and excludable debt not Yes
How long is the arrangement ? 5 or in cases 6 yrs 6 or in cases 7 yrs 3 Yrs but conditions can extend to 8 yrs
Do I have to keep my part of the arrangement ? Yes or else deal fails Yes or else deal fails N/A
Can my creditors contact me or hassle me in any way ? No No No