Personal Insolvency Acts 2012-2015 v Lowe (A Debtor) [2020] IEHC 104 (02 March 2020)

Personal Insolvency Acts 2012-2015 v Lowe (A Debtor) [2020] IEHC 104 (02 March 2020)

The proposed personal insolvency arrangement unlawfully reduces the principal sum due to the secured creditor below the market value of the property without creditor consent, contrary to s.103(2) of the Personal Insolvency Act 2012. Section 102(6)(f) does not override this requirement. The court cannot confirm the...

Source-derived case information.

Citation
[2020] IEHC 104
Parties
Debtor: Denise Lowe; Secured Creditor: Governor and Company of the Bank of Ireland; Objecting Creditor (amicus): KBC Bank (Ireland) Plc
Jurisdiction
Ireland
Judgment Date
02 March 2020
Procedural Posture
Circuit Appeal / Judgment on Appeal From Circuit Court Refusal to Confirm Personal Insolvency Arrangement
Outcome
appeal dismissed
Legal Topics
Personal Insolvency Arrangement, Secured Debt, Debt for Equity Swap, Statutory Interpretation, Mortgage Law
Insolvency Property Law Banking Law Personal Insolvency Arrangement Secured Debt Debt for Equity Swap Statutory Interpretation Mortgage Law

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Parties

Denise Lowe

Debtor

Governor and Company of the Bank of Ireland

Secured Creditor

KBC Bank (Ireland) Plc

Objecting Creditor (amicus)

Procedural Posture

Circuit Appeal / Judgment on Appeal From Circuit Court Refusal to Confirm Personal Insolvency Arrangement

Legal Issues

  1. 1 Whether a debt for equity swap in a personal insolvency arrangement can be confirmed without secured creditor consent when principal sum is reduced below market value
  2. 2 Interpretation of 'equity' under s.102(6)(f) of the Personal Insolvency Act 2012
  3. 3 Compliance with mandatory requirements of s.103(2) and s.99 of the Personal Insolvency Act 2012

Ratio Decidendi

The proposed personal insolvency arrangement unlawfully reduces the principal sum due to the secured creditor below the market value of the property without creditor consent, contrary to s.103(2) of the Personal Insolvency Act 2012. Section 102(6)(f) does not override this requirement. The court cannot confirm the arrangement under s.115A.

Court Disposition

appeal dismissed

Orders

  • Order affirming Circuit Court dismissal of application under s.115A