The High Court has approved a personal insolvency scheme that will allow a 52-year-old man to write off approximately €1.38m in debt owed to a financial fund.
nder the terms of the the Personal Insolvency Arrangement (PIA) Alan Jenkins, who had debts of approximately €2.5m, will see that sum reduced to zero after he agreed to surrender 10 properties, he owns to his secured creditor Havbell DAC.
The properties are mainly located in various towns in the Midlands, and in Dublin. The 10 properties are to be sold off and the proceeds will go towards reducing his debt to the financial fund.
It is estimated that the sale of 10 properties, along with other terms of the PIA will reduce the amount owed by Mr Jenkins by approximately €1.2m.
In addition, Mr Jenkins a married man with an address at Newcastle, Tyrrellspass, Co Westmeath, will retain an eleventh property he owns, a house at Stonebridge Park, Rochfortbridge in Co Westmeath.
Under the terms of the PIA Havbell DAC have agreed to release any interest it has in the Rochfortbridge property.
The court heard that Mr Jenkins, who currently lives in rented accommodation with his wife, had derived all his income from the properties he owned.
He got into arrears due to the downturn in the economy and the collapse in the property market over a decade ago.
Arising out of his debts Mr Jenkins applied, through his Personal Insolvency Practioner (PIP), for a PIA.
The PIP said that the PIA, which was accepted by his creditor, represented a better outcome for Mr Jenkin’s creditors compared to if he was adjudicated a bankrupt.
At the High Court on Tuesday Mr Jenkin’s PIP, represented in court by Keith Farry Bl, sought to have the amendments made to Mr Jenkins PIA approved by the High Court.
He told Ms Justice Reynolds that the while a PIA had previously been approved by the High Court the application to the court was necessitated due to a material change in circumstances.
The original length of the proposed PIA was 12 months, counsel said.
However, it was now proposed that it would be extended to 27 months counsel said. There was no objection to the amendment, the court heard.
Following the conclusion of counsel’s submissions to the court Ms Justice Reynolds said she was satisfied to approve the amended PIA.