Monday, March 27, 2023

High Court reporters

The High Court has approved Personal Insolvency Arrangements that will allow a retired couple aged in their mid 70s to rent back their Dublin home after it is sold to a housing agency.

Under the terms of the PIA Thomas and Catherine Carroll will remain in their home under a social tenancy agreement at Oaklands Avenue, in Swords Co Dublin following its sale to a housing agency to help pay off their debts of €385,000.

Under the proposed arrangement they will be allowed to remain in the property, which has been valued at €315,000 for the rest of their lives.

The court heard that the couple became insolvent and unable to repay the debts, including loans and their mortgage they had taken out with various parties.

As a result of their situation, they sought to enter the personal insolvency process.

They had applied to the Circuit Court to have their PIAs approved.

However, those applications were not successful following an objection by one of their creditors, resulting in an appeal to the High Court.

The couple’s appeals came before Mr Justice Alexander Owens on Monday, who was told that the objections have been withdrawn.

Their creditors included Everyday Finance, the Revenue Commissioners and a local credit union.

Keith Farry Bl for the couple’s Personal Insolvency Practitioner

Eugene McDarby said the cases were somewhat unusual.

In this case several parties who have charges over an asset owned by parties seeking PIAs had agreed to allow a family home to be sold to a housing agency as part of the PIAs.

Such agreements are common where there is only one party that retains a charge over a  family home, counsel said.

It was envisaged that the couple would pay €92 per week to the association in rent.

They will also continue to make monthly payments during the court of the PIA towards their debts, counsel said.

The PIAs  which will allow the couple to return to solvency, will give their creditors a better outcome compared to if they were adjudicated as bankrupts, counsel added.

The judge said that he was satisfied to approve the PIAs, which will be two years in duration and take account for the couple’s reasonable living expenses.

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