High Court Approves €3.5M Debt Write-Off for Dublin Widow

The High Court approved a personal insolvency arrangement for 67-year-old Gill McEvoy, allowing her to write off €3.5 million in unsecured debt. The arrangement enables her to keep her €850,000 family home in Goatstown through a restructured mortgage deal.

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Bijay Laxmi
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High Court Approves €3.5M Debt Write-Off for Dublin Widow

High Court Approves €3.5M Debt Write-Off for Dublin Widow

The High Court has approved a personal insolvency arrangement (PIA) for Gill McEvoy, a 67-year-old widowed company director from Dublin, allowing her to write off €3.5 million in unsecured debt and keep her €850,000 family home in Goatstown.

Ms. McEvoy had total debts of €4.26 million, including €3.55 million owed to Pepper Finance Corporation Ireland DAC. She also had an outstanding mortgage of €706,629 on her family home valued at approximately €850,000, and owed €3,781 to the Revenue Commissioners.

Why this matters: This case highlights the role of personal insolvency arrangements in providing a viable alternative to bankruptcy for individuals struggling with debt, and demonstrates the court's willingness to work with debtors to find solutions that benefit both parties. As Ireland continues to grapple with high levels of personal debt, this decision may set a precedent for future cases and influence policy discussions arounddebt relief.

Under the terms of the PIA, Ms. McEvoy's mortgage accounts will be extended to 288 months, with a reduced interest rate of 3% for the first 24 months and fixed monthly payments of €1,764. For the remainder of the term, interest-only monthly repayments of €2,649 will apply. Any outstanding balance on the mortgage upon maturity of the loan or after Ms. McEvoy's death will be paid from the sale of the property.

Mr. Justice Alexander Owens stated, "It seemed reasonably certain the debtor would be able to comply with terms of the personal insolvency arrangement." The PIA will enable Ms. McEvoy to resolve her indebtedness without recourse to bankruptcy while allowing her creditors to address their debts within her means.

Over the six-year term of the PIA, Ms. McEvoy will make a total contribution of €43,577 to her creditors. Unsecured creditors are projected to receive total repayments of €27,803, net of the personal insolvency practitioner's fees and outlays. Ms. McEvoy's current monthly income is €4,650 from director's fees. Her other assets include a one-seventh share in a property in Galway and a car valued at €12,000.

The High Court's approval of this personal insolvency arrangement allows Ms. McEvoy to write off a substantial €3.5 million in unsecured debt while retaining ownership of her valuable Dublin home through a restructured mortgage arrangement. The case highlights the role of PIAs in providing a path to resolve significant personal indebtedness as an alternative to bankruptcy.

Key Takeaways

  • 67-year-old widow Gill McEvoy writes off €3.5m in unsecured debt.
  • She keeps her €850,000 family home in Goatstown with restructured mortgage.
  • High Court approves personal insolvency arrangement (PIA) to avoid bankruptcy.
  • Ms. McEvoy will make total contribution of €43,577 to creditors over 6 years.
  • Case sets precedent for future debt relief cases in Ireland.