Fennell v Personal Insolvency Acts 2012-2015 (Approved) [2021] IEHC 297 (29 April 2021)

Fennell v Personal Insolvency Acts 2012-2015 (Approved) [2021] IEHC 297 (29 April 2021)

A Personal Insolvency Arrangement extending mortgage repayments beyond the debtor's life expectancy is permissible under s.102(6)(c) of the Personal Insolvency Acts 2012-2015, provided the arrangement is formulated in compliance with statutory requirements, offers a reasonable prospect of debtor compliance, and is not unfairly prejudicial to the creditor. The regulatory and provisioning impacts on the creditor, while relevant, do not constitute unfair prejudice in the circumstances, especially given the full repayment of capital and interest and the protection afforded by the equity in the property. The arrangement is sustainable based on the debtor's means and available third-party...

Citation
[2021] IEHC 297
Parties
Applicant (debtor): Ann Fennell; Respondent (objecting Creditor): Ulster Bank Ireland DAC
Jurisdiction
Ireland
Judgment Date
29 April 2021
Procedural Posture
Circuit Appeal (personal Insolvency) / High Court Judgment on Appeal From Circuit Court Refusal of S.115 A(9) Application
Outcome
Appeal allowed; Personal Insolvency Arrangement confirmed.
Legal Topics
Personal Insolvency Arrangement, Mortgage Restructuring, Unfair Prejudice, Sustainability of Debt Arrangements, Principal Private Residence Retention
Insolvency Banking Property Law Personal Insolvency Arrangement Mortgage Restructuring Unfair Prejudice Sustainability of Debt Arrangements Principal Private Residence Retention

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 16 Party arguments 2 Amounts and remedies 10
Sign in to unlock

Parties

Ann Fennell

Applicant (debtor)

Ulster Bank Ireland DAC

Respondent (objecting Creditor)

Procedural Posture

Circuit Appeal (personal Insolvency) / High Court Judgment on Appeal From Circuit Court Refusal of S.115 A(9) Application

Legal Issues

  1. 1 Is a Personal Insolvency Arrangement (PIA) extending mortgage repayments beyond debtor's life expectancy permissible under the Personal Insolvency Acts 2012-2015?
  2. 2 Does the proposed PIA unfairly prejudice the creditor due to regulatory and provisioning requirements?
  3. 3 Is the arrangement sustainable given the debtor's age, income, and reliance on third-party contributions?

Ratio Decidendi

A Personal Insolvency Arrangement extending mortgage repayments beyond the debtor's life expectancy is permissible under s.102(6)(c) of the Personal Insolvency Acts 2012-2015, provided the arrangement is formulated in compliance with statutory requirements, offers a reasonable prospect of debtor compliance, and is not unfairly prejudicial to the creditor. The regulatory and provisioning impacts on the creditor, while relevant, do not constitute unfair prejudice in the circumstances, especially given the full repayment of capital and interest and the protection afforded by the equity in the property. The arrangement is sustainable based on the debtor's means and available third-party...

Court Disposition

Appeal allowed; Personal Insolvency Arrangement confirmed.

Orders

  • The proposed Personal Insolvency Arrangement is confirmed pursuant to s.115A(9) of the Personal Insolvency Acts 2012-2015.
  • Debtor may retain principal private residence and make payments as per the restructured mortgage term.