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Court has no jurisdiction to overrule result of a creditors’ meeting where a debtor fails to establish a relevant debt

By: Heather Furlong BL

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High Court refuses to grant order confirming the coming into effect of a personal insolvency arrangement, where the applicant cannot establish that there was a relevant debt at the time of the issue of the application.

Personal insolvency - application by a personal insolvency practitioner on behalf of the debtor pursuant to s. 115A of the Personal Insolvency Acts 2012-2015, seeking an order confirming the coming into effect of the personal insolvency arrangement (PIA) - PIA rejected by the creditors at a meeting - application opposed by the debtor's largest creditor - whether the debtor had established a relevant debt - whether the means of the debtor had been fully brought to bear on the personal insolvency arrangement - not relevant debt as defined by s. 115A(18) and s. 2(1) - no debt which was secured by security in or over the debtor's principal private residence - proposed PIA did not satisfy the requirement to enable the creditor to recover debt due to it to the extent that the means of the debtor reasonably permits - undertaking to vary the PIA pursuant to s. 119A - definition of principal private residence - onus of proof on the personal insolvency practitioner to prove there is a relevant debt - falls to the court to decide at which point the requirement of showing that the debtor ordinarily resides in the property must be established - must show a relevant debt at the commencement of the s.115A(9) application - application issued within 14 days of the creditors meeting - order refusing the application

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

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