The High Court has approved a Personal Insolvency Arrangement (PIA) that will allow a man who ran his own retail business for many years to write off approximately €900,000 in debt owed to a financial fund.
The PIA, which is 15 months in duration, will allow Gerard Conlon (41) of Farndreg, Coxes Demense, Dundalk, Co Louth, to remain in his family home. The court heard Mr Conlon, who is married with one dependent child, was self-employed and ran his own retail business for some years. Due to a downturn in sales, his business had to cease trading in 2019.
The PIA was formally approved at the High Court by Mr Justice Alexander Owens. Mr Conlan’s PIA was put together by his Personal Insolvency Practioner Alan Clarke, who was represented in court by Keith Farry.
Counsel said Mr Conlon entered into the insolvency process because of debts incurred after he and a relative borrowed money to fund the purchase of several properties between 2000 and 2008. Following the economic downturn, the value of the properties plummeted and his businesses suffered. The loans became unsustainable and the properties were repossessed.
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He is employed on a temporary basis, which is due to cease early next year.
The court heard that he owes financial company Pepper Asset Servicing more than €1.1 million, including €170,000 for the mortgage on his home, which is valued at €130,000.
He owes Revenue €78,000 and other smaller amounts to unsecured creditors.
Under the terms of his PIA, he will continue to make payments on his mortgage on his two-bedroomed home over the next 29 years and will make payments to Revenue. The PIA will also be funded by an €8,800 payment from a third party. A property he owns in Dundalk will be handed over to Pepper.
Mr Farry said the bulk of what is owed to Pepper, some €900,000, will be written off under the arrangement. A small amount of money was being provided to the unsecured creditors. Mr Farry told the court that there were no objections to the PIA being approved. He said creditors fare better under the arrangement than they would if Mr Conlon was adjudicated a bankrupt.
