McCarthy v Personal Insolvency Acts 2012-2015; McCarthy v Personal Insolvency Acts 2012-2015 (Approved) [2023] IEHC 346 (25 May 2023)

McCarthy v Personal Insolvency Acts 2012-2015; McCarthy v Personal Insolvency Acts 2012-2015 (Approved) [2023] IEHC 346 (25 May 2023)

The debtors have demonstrated, on the balance of probabilities, the capacity to comply with the proposed Personal Insolvency Arrangements, including the ability to make the required monthly payments while maintaining a reasonable standard of living. The arrangements comply with statutory requirements, including s.104 and s.99(2)(e), and the costs of remaining in the principal private residence are not disproportionately large. The personal insolvency practitioner considered appropriate alternatives, and the arrangement is not unfairly prejudicial to the creditor.

Citation
[2023] IEHC 346
Parties
Debtor: Nuala McCarthy; Debtor: Edward McCarthy; Creditor: Ulster Bank DAC
Jurisdiction
Ireland
Judgment Date
25 May 2023
Procedural Posture
Personal Insolvency Appeal / High Court Appeal From Circuit Court Decision
Outcome
Appeal allowed; arrangements approved subject to formal orders
Legal Topics
Personal Insolvency Arrangement, Reasonable Standard of Living, Mortgage Restructuring, Section 115 a Personal Insolvency Act, Section 104 Personal Insolvency Act
Insolvency Law Banking Law Personal Insolvency Arrangement Reasonable Standard of Living Mortgage Restructuring Section 115 a Personal Insolvency Act Section 104 Personal Insolvency Act

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Parties

Nuala McCarthy

Debtor

Edward McCarthy

Debtor

Ulster Bank DAC

Creditor

Procedural Posture

Personal Insolvency Appeal / High Court Appeal From Circuit Court Decision

Legal Issues

  1. 1 Whether the debtors are reasonably likely to comply with the terms of the proposed Personal Insolvency Arrangements as required by s.115A(9)(c) of the Personal Insolvency Act 2012
  2. 2 Whether the proposed Arrangements comply with s.104(2) and s.115A(9)(a) of the 2012 Act
  3. 3 Whether the costs of enabling the debtors to remain in their principal private residence are disproportionately large under s.115A(9)(d)

Ratio Decidendi

The debtors have demonstrated, on the balance of probabilities, the capacity to comply with the proposed Personal Insolvency Arrangements, including the ability to make the required monthly payments while maintaining a reasonable standard of living. The arrangements comply with statutory requirements, including s.104 and s.99(2)(e), and the costs of remaining in the principal private residence are not disproportionately large. The personal insolvency practitioner considered appropriate alternatives, and the arrangement is not unfairly prejudicial to the creditor.

Court Disposition

Appeal allowed; arrangements approved subject to formal orders

Orders

  • The appeals will be listed for mention for formal orders on 12 June 2023.
  • The proposed Personal Insolvency Arrangements are approved, subject to any necessary payment to reduce the loan balance to the specified amount.