Archive for the ‘pip’ Category

The Vultures have landed-What do I do?

August 1, 2018

The term Vulture Fund is not new as this was the method used by Nama, IBRC, Anglo, Bank of Scotland and National Irish bank (to name a few) who used the sale of their loans books to 3rd parties to clear up their under performing loans.

These Vulture Funds or Investment Funds as they prefer to be called, have bought these bad loans from the main banks at a substantial discount and their only mission is to recover as much as possible from the debts they have bought. Given that both PTSB and Ulster bank announced earlier this year that they will sell circa 25,000 loans to Vulture Funds; this is already a hot topic in 2018 with demonstrators gathered outside the Ideal Homes Exhibition at the RDS on Saturday 21st April 2018 to protest the event’s main sponsors Permanent TSB.

This sale of loans by PTSB has now come to fruition by todays announcement that PTSB has sold 10,000 loans to an investment fund managed by Start. The portfolio contains around 10,700 non-performing loans, 7,400 of which are owner-occupier mortgages.

I think that no more than the IMF 10 years ago the advent of Vulture Funds entering our financial system is a wake up call that the years of kicking the can down the road by the Irish banks is now over.

Unlike the main Irish banks these vulture funds are not concerned with the negative publicity of pursuing these debts through any means possible. This could be through debt collection agencies, legal proceedings, home repossession and general harassment from their arrears support teams.

The Vulture Funds business model is short-term, they have no interest in having a long-term arrangement or relationship with their new customer. They just want cash!!!

Where does this leave the hundred thousand plus home owners who are in fear of losing their homes…….it leaves them in a tough spot.

Despite the fact that debt solutions were introduced by the Government in 2012 through the personal insolvency legislation less than 2,000 people have availed of the legislation.

The main reason in my experience is that they don’t understand that this solution applies to them and that it can help them. There is a lot of misinformation (I call it pub talk) about the legislation but from my hands on experience there is no other method to resolving your debt than by getting Court protection to save your home through a Personal Insolvency Arrangement (PIA) or a Debt Settlement Arrangement (DSA).

The good news is that 90% of those that avail of the personal insolvency legislation through a PIA retain their family home and at the end of the process they end up with a sustainable mortgage and their other debts are written down as part of the process.

The personal insolvency legislation is the only method to protect yourself from your creditors and to protect your family home.

These arrangements are working and we have put 100’s of people through the process in the last number of years. In some cases they have already exited the process and they are out the other side and they have started to finally move on with their lives.

There is not a specific profile of an insolvent person as each case is different. For example the problem could be a split loan on a family home that can never be paid, a property portfolio that will never recover, debts or judgements due to a business failure, revenue debts or residual debt left after the sale of a property or development site etc.

In my experience most of the people I meet know they are in trouble they just don’t know how to solve that problem.

I am one of less than 30 active PIPs in Ireland who specialise in the Personal Insolvency Legislation. I would recommend that you contact an active PIP to see how the personal insolvency legislation can help you to resolve your debt problems. The first question I would ask your PIP is how many cases they manage and how many cases they have gotten approved.

If you are struggling to manage your debts and you want to know how to get help then please click on the links below for more information on personal insolvency and on Abhaile which is the Government’s free mortgage arrears support scheme, which includes a free Personal Insolvency Practitioner consultation for those worried about their debts and under threat of repossession of their family home.

www.backontrack.ie

www.mabs.ie/en/abhaile/

Alternatively please send me an email setting out your situation to mark.ryan@quintas.ie and I will get back to you with a plan on how to solve your debt problem.

Kind Regards,

Mark Ryan, CPA,

Personal Insolvency Practitioner (PIP),

Director, Quintas

Mark Ryan is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner.

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Tips on how to deal with your creditors.

April 20, 2015

Creditors

A lot of the time I get involved in cases at a late stage where the relationship between the borrower (debtor) and their creditors has broken down and unfortunately the creditors are in the process or have issued legal proceedings against the debtor.

Having unsustainable debt is a very difficult and stressful position to be in as it involves constant phone calls, letters and communication from the creditor as they try to get the case resolved. Thankfully with some hard work and straight talking we can get to a point that in most cases there is a solution that both parties can be agreeable to.

The single biggest flaw in the relationship between the debtor and their creditor is a lack of trust and poor communication on both sides.

In most cases the debtor knows that there is a problem but they don’t know what the solution is and are not confident to deal with the bank themselves so they stop talking and communicating their current financial position to their creditor. This only leads to the creditor becoming more aggressive in chasing the debtor which only makes the situation worse.

It is likely that the debtor has been dealing with the problem for the last 7/8 years since the economic collapse of the Irish economy and the free line of credit from the banks stopped.

My role in these cases whether as a PIP (Personal Insolvency Practitioner) or as part of a debt restructuring arrangement for my client is to act as a mediator or ‘referee’ between the parties. As I have said in most cases there is a middle ground that can be agreed on in the short term, which will then allow us over time to on a medium term plan to bring stability to the situation and take the heat out of what can have become a very fraught relationship.

The following would be a few of the tips I would recommend on how to deal with your creditors:

  1. Communicate – with your creditors at all times,
  2. Mediate – if you are unsure what to do ask a friend, parent, family member or business associate assist you in your discussions with the bank,
  3. Co-operate – this is simply understanding and following the banks protocols and providing them with the information that they have requested,
  4. Calculate – work out what you can afford to pay and spread this among your creditors,
  5. Prioritise your secured creditors, especially your family home,
  6. Be honest – if you are struggling (e.g. Out of work, sick etc) tell the bank and keep them up to date on your situation,
  7. Take notes – keep a copy of all correspondence and note what was discussed in your phone call as you may need this information at some stage in the future,
  8. Understand the ground rules – the bank want to be paid what they are owed but will work with you if they can,
  9. Educate yourself on the new personal insolvency and bankruptcy legislation – this is very important if you find that you cannot meet all of your debts as they fall due or you have unsustainable debt,
  10. Know your rights – you have rights and the bank know this so make sure you understand how you should be treated fairly by your creditor,
  11. Don’t fear the problem face up to it – be proactive rather than reactive with your financial situation,
  12. Look after your mental health – this is very important as if your health deteriorates your financial position could get worse,
  13. Don’t give up – they are plenty of solutions and options open that could solve your financial problems,
  14. Get good advice – It is critical to have the right person working on your behalf as signing up to the wrong deal will only make the situation worse,
  15. Be patient – as it can take sometime to get an agreement in place,
  16. You are not alone – unfortunately no one has been left untouched after the economic crash and there are many people in a similar position to you. One of the main reasons the new personal insolvency legislation was put in place was to ensure that anyone with unsustainable debt would have a chance at a fresh start in 5/6 years once their DSA/PIA had been completed.

Quintas are currently running open information evenings on debt resolution and if you would like to avail of a FREE 1:1 appointment with Mark Ryan the Quintas is a Personal Insolvency Practitioner (PIP) contact 021 4641400 or email info@quintas.ie