A personal insolvency arrangement writing a man’s €845,000 unsecured debt down to zero has been approved by the High Court.
The arrangement for Raymond Kearney, of Ard Ri Rua, Bettystown, Co Meath, will see his home made subject to a mortgage-to-rent scheme for the benefit of his secured creditor, Pepper Finance Corporation DAC.
Pepper will recover about €220,000 of its €259,338 mortgage debt, while the Revenue Commissioners will recover about €12,000 of a €53,000 debt.
The arrangement means Mr Kearney (54), who is divorced, can remain in his home, which has a market value of €260,000 and an outstanding mortgage balance of €259,378. His only other asset was described as a BMW car, valued at €12,000.
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His total income was put at about €1,147 monthly, out of which reasonable living expenses were put at €931.
His overall debt, including the mortgage debt, amounted to €1.08 million. Other creditors include Cabot Financial Ireland Ltd, owed more than €600,000, and BWG Foods Ltd, owed €127,290.
Personal insolvency practitioner Eugene McDarby, represented by barrister Keith Farry and solicitor Nicola Nevin, applied for approval of the insolvency arrangement on Monday.
Having considered the evidence and submissions, Ms Justice Nessa Cahill was satisfied to approve the two-year plan.
It provides for the mortgage on his home to be restructured through a mortgage-to-rent scheme. His monthly rental income was estimated at about €216 during the 24-month term of the arrangement.
An expected residual debt of about €39,378 after the mortgage-to-rent scheme is completed will be treated as unsecured debt as part of the plan.
A judgment mortgage obtained by the Revenue Commissioners over his home, secured as a second charge over the property, will be lifted to allow the mortgage-to-rent transaction to proceed.
The debt owed to BWG Foods, secured as a third charge via a judgment mortgage on the property, will also be lifted.
