Legal history was made this week in Trim circuit court. Concerning, a 67-year-old widower who was in mortgage debt and risked losing his home, a proposal for an insolvency arrangement was put forward to swap his debt for equity. This resulted in his mortgage loan being written down from €139,500 to €18,500.
The arrangement meant that the creditor (Start Mortgages) was given 85% equity share of the property and the debtor left to pay 15% of the value of the property, in monthly instalments, without the risk of a forced sale.
This is the first Debt for Equity solution of its kind and is claimed to be a landmark ruling. The legal team involved in the case Gibson & Associates Solicitors are pleased with the outcome, solicitor Amanda Walsh, commented:
“This is the first debt-for-equity solution that has been approved after a fully contested hearing before the Court. We were delighted to be able to assist the debtor in this instance, and in conjunction with his personal insolvency practitioner provide a solution for him.”