The type of personal insolvency solution that you may be eligible for will depend on your personal situation and type and amount of debt you have.
Secured debts are debts that are backed by something valuable you own. For example a car or house.
Unsecured debts are debts that are not backed by something valuable.
Solutions for unsecured debt
- A debt relief notice (DRN) lasts for three years. It is a formal, legally binding solution where unmanageable debt is completely written off after three years. To be eligible you must have unsecured debts of less than €35,000 in addition to other criteria.
- A debt settlement arrangement (DSA) can last for up to five years, an extension of one year is possible in some cases. It is a formal, legally binding solution. You can write off some of your unsecured debt, by repaying a percentage of your overall debt in monthly payments. You can also make a once-off lump sum payment. There is no limit to the amount of unsecured debt that you can have to be eligible.
Solutions for secured and unsecured debt
- A personal insolvency arrangement (PIA) can last for up to six years, an extension of one year is possible in some cases. It is a formal, legally binding solution for both secured and unsecured debt. You can restructure or reduce the money that you owe. It prioritises paying your secured debts, like your mortgage. To be eligible you must have secured debts of less than €3 million in addition to other criteria.
Once you have identified the personal insolvency solution that applies to your situation, you should visit our page on applying for a personal insolvency solution.
Applying for a personal insolvency solution >
Other solutions
Bankruptcy may be another option. Bankruptcy is a formal, high court process. You must first have tried a personal insolvency solution and have more than €20,000 of debt.
