Horan v Personal Insolvency Acts 2012-2015 (Approved) [2021] IEHC 171 (12 March 2021)

Horan v Personal Insolvency Acts 2012-2015 (Approved) [2021] IEHC 171 (12 March 2021)

The debtor failed to establish the existence of a relevant debt as required by s.115A(18) of the Personal Insolvency Acts 2012-2015, and the application was further undermined by lack of candour and evidence regarding rental payments set aside. The internal inconsistency in the PIA was not fatal due to the prevailing clause, but the gateway requirement was not met.

Citation
[2021] IEHC 171
Parties
Debtor: Michael Horan; Personal Insolvency Practitioner: Alan McGee; Objecting Creditor: Promontoria (Oyster) DAC; Secured Creditor: Bank of Ireland Mortgage Bank
Jurisdiction
Ireland
Judgment Date
12 March 2021
Procedural Posture
Circuit Appeal / Appeal From Circuit Court Decision Refusing Application Under S.115 A(9) Personal Insolvency Acts 2012 2015
Outcome
Application dismissed
Legal Topics
Personal Insolvency Arrangement, Relevant Debt, Secured Creditors, Bankruptcy Comparison, Creditor Objection
Insolvency Banking Law Property Law Personal Insolvency Arrangement Relevant Debt Secured Creditors Bankruptcy Comparison Creditor Objection

Case Brief

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Parties

Michael Horan

Debtor

Alan McGee

Personal Insolvency Practitioner

Promontoria (Oyster) DAC

Objecting Creditor

Bank of Ireland Mortgage Bank

Secured Creditor

Procedural Posture

Circuit Appeal / Appeal From Circuit Court Decision Refusing Application Under S.115 A(9) Personal Insolvency Acts 2012 2015

Legal Issues

  1. 1 Whether the proposed Personal Insolvency Arrangement (PIA) is approvable
  2. 2 Whether the PIA is unfairly prejudicial to the objecting creditor
  3. 3 Whether a relevant debt exists under s.115A(18) Personal Insolvency Acts 2012-2015

Ratio Decidendi

The debtor failed to establish the existence of a relevant debt as required by s.115A(18) of the Personal Insolvency Acts 2012-2015, and the application was further undermined by lack of candour and evidence regarding rental payments set aside. The internal inconsistency in the PIA was not fatal due to the prevailing clause, but the gateway requirement was not met.

Court Disposition

Application dismissed

Orders

  • Order dismissing debtor's application for confirmation of PIA under s.115A(9)
  • Matter listed for personal insolvency list after seven days to hear parties as to terms of order