Personal Insolvency Acts 2012-2015 v MCNamara (A Debtor) [2020] IEHC 103 (02 March 2020)

Personal Insolvency Acts 2012-2015 v MCNamara (A Debtor) [2020] IEHC 103 (02 March 2020)

Discrepancies between SFS and PFS are adequately explained; rental income, though not disclosed in PFS, was treated as part of inheritance and is now committed to creditors; sustainability of arrangement is not jeopardised; non-disclosure does not warrant refusal of confirmation given subsequent full disclosure and enhanced dividend to creditors.

Citation
[2020] IEHC 103
Parties
Debtor: Frank McNamara; Objecting Creditor: Tanager DAC; Practitioner: Personal Insolvency Practitioner (James Green)
Jurisdiction
Ireland
Judgment Date
02 March 2020
Procedural Posture
Personal Insolvency Arrangement Confirmation / Final Determination Following Adjournment for Further Affidavits
Outcome
Application for confirmation of Personal Insolvency Arrangement granted
Legal Topics
Personal Insolvency Arrangement, Disclosure Obligations, Creditor Objections, Inheritance as Asset, Rental Income Treatment
Insolvency Banking and Finance Property Law Personal Insolvency Arrangement Disclosure Obligations Creditor Objections Inheritance as Asset Rental Income Treatment

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Parties

Frank McNamara

Debtor

Tanager DAC

Objecting Creditor

Personal Insolvency Practitioner (James Green)

Practitioner

Procedural Posture

Personal Insolvency Arrangement Confirmation / Final Determination Following Adjournment for Further Affidavits

Legal Issues

  1. 1 Whether discrepancies between Standard Financial Statement and Prescribed Financial Statement undermine confirmation of Personal Insolvency Arrangement
  2. 2 Whether failure to disclose rental income constitutes material non-disclosure
  3. 3 Whether arrangement unfairly prejudices objecting creditor

Ratio Decidendi

Discrepancies between SFS and PFS are adequately explained; rental income, though not disclosed in PFS, was treated as part of inheritance and is now committed to creditors; sustainability of arrangement is not jeopardised; non-disclosure does not warrant refusal of confirmation given subsequent full disclosure and enhanced dividend to creditors.

Court Disposition

Application for confirmation of Personal Insolvency Arrangement granted

Orders

  • Personal Insolvency Arrangement confirmed
  • Entire inheritance and accrued rent to be made available to creditors