Martin and Fionnuala found themselves in a nightmare scenario when they fell behind on mortgage and loan repayments. A change in circumstances threw their finances into disarray and, while they initially hoped things would get better and the problem would go away by itself, it didn’t.
“We were in arrears for a good few years on both the mortgage and our credit union loan,” says Fionnuala.
Martin adds, “We tried to pay a little off both to keep everyone happy but we were getting calls mostly about the mortgage. The bank kept telling us that was the most important one to keep on top of.”
Despite their best efforts, the arrears just kept piling up. “It's a vicious cycle,” says Fionnuala. “When you are trying to pay as much as you can but just can’t seem to get ahead... One day we received a letter from the bank threatening us with repossession.”
They were shocked to realise that things had become so desperate. “You never expect something like that could happen to you,” says Martin. “We’re just an ordinary family, doing the best we can but ended up struggling. It was a nightmare.”
This was definitely a wake up call for the couple, as Fionnuala explains, “When we realised things were not going to get better, we reached out to the Insolvency Service of Ireland, the ISI, who suggested getting in touch with a PIP, a personal insolvency practitioner. At that stage we thought, ‘Well, things can't get any worse...’”
PIPs are qualified professionals, regulated by the ISI, with the relevant expertise to help you reach a permanent solution for your debt problems. They will advise you of the options and solutions available to help get you back on track financially.
If you are in arrears on your home mortgage, you could be eligible for a free PIP consultation under a state-funded scheme. For more details visit backontrack.ie or call the ISI’s information line 01 764 4200.
For Martin and Fionnuala, meeting a PIP turned out to be life-changing.
“After our first meeting, where our options were explained properly to us, we came out feeling hopeful... We had started a process, we were doing something,” says Martin.
Fionnuala agrees, “Our PIP recommended a Personal Insolvency Arrangement, and now she stood between us and the bank - she dealt with them and kept them off our backs. The sheer relief of that alone was fantastic!”
A Personal Insolvency Arrangement (PIA), is an insolvency solution for people with unsecured and secured debts, such as a mortgage and credit cards – or unsecured personal loans, like Martin and Fionnuala. A PIA is a formal agreement with creditors that will write off some unsecured debt and restructure any remaining secured debt – while allowing you to stay in your home where possible.
For most people struggling with debt, simply having a plan in place is enough to take the pressure off and give some peace of mind.
For Martin, the feeling was immediate, “You could actually see the relief in both of us – like some weight had been lifted... That's such a clichéd thing to say but it's true,” he says.
“Waiting to see if it would all go through was hard, but when we found out it had been accepted, it was like winning the lotto!”
Fionnuala felt the same, “We were nearly in tears thinking, ‘Is this for real? Is it happening?’
“The kids used to ask us what was wrong and we'd say, ‘Oh, it’s hard to pay bills’ and try to keep a brave face. Now we have a solution and a way forward – you can tell that they feel it, too.”
For Martin and Fionnuala, reaching out to the ISI was a major turning point, and saw years of stress and worry put firmly behind them.
Martin’s advice for anyone in a similar situation is, “Don’t be afraid to ask for help – it’s so much better than facing it alone!”
For more information on PIPs, PIAs and other types of assistance offered by the ISI, visit backontrack.ie