Man Gets 70pc of Debts Wiped

Article excerpt

Byline: Jennifer Bray

A MAN who works for the HSE has had up to 70 per cent of his debts written off following a landmark insolvency deal.

The borrower had a six-figure debt but did not have the means or assets to pay back the large amount owing.

He had been involved in a commercial partnership which collapsed, leaving him with a significant amount of business debt. Lobby group New Beginning struck the deal at a creditors' meeting yesterday afternoon.

The man's personal insolvency practitioner was Ronan Duffy of Derry-based McCambridge Duffy.

Speaking about the case, Ross Maguire SC, of New Beginning, told the Mail the case was just the first of many.

He said: 'It is the first of these type of deals under the new insolvency legislation, and it holds out hope for thousands of other people.

Other borrowers can now see that there is a system there and it is a system which could work for them too.

'It can certainly be described as a landmark deal, and it is the trickle that will eventually turn into a pour.' Under the agreement, the man, from Donegal, will pay off a certain amount of money for five years after which he will be given a clean bill of financial health.

The individual could not pay his debts after a business venture fell through, and it is understood three of Ireland's main banks were among six creditors involved. …