Mortgage written off €100,000 and unsecured debts written off €163,000 in a PIA
Our client had operated a sole trade business for 13 years. The client had a commercial mortgage with the business. Due to the downturn in the economy the business had cash flow difficulties, the mortgage fell into arrears and there were debts due to suppliers and Revenue of €643,642.
We proposed a PIA with a restructure on the commercial property mortgage, with a reduced repayment each month over the term of the PIA. The bank agreed to a write-down of €100,000 on the property and the unsecured creditors were paid a dividend of 28cent in the euro and the balance of €163,000 was written off.
For the client, this meant they could retain the business and make affordable repayments.