distressed borrowerDistressed Debtor – here is how you help your PIP to help you!

Dealing with debt is not easy when you are distressed and fearful for the consequences for you and your family.

For people trying to deal with paying their debts, the Government passed the Personal Insolvency Act 2012 and within that Act provision was made for the establishment of the Insolvency Service of Ireland and also professional advisers call Personal Insolvency Practitioners (PIP’s) otherwise known as 3rd party advisers.
Before a person can act as a PIP, He or She must prove they have the required qualifications, pass an exam and become authorised by the ISI.

I am sure you would like to know…How you can help your PIP to help you.
The answer is straight forward; provide all the information you can such as

Your Family,
Your income
Your day to day living expenses
Your debts (loans or outstanding bills)
Your assets (Houses, cars, investments, pensions and cash)
And any other information about you for example; special circumstances, such as medical expenses due to ill health of you or a family member.

Obtaining the correct information from your lender can be more of a problem than you think.
When it comes to the important information about a loan the following key questions need to be asked and answers recorded.
The total balance outstanding on my account?
The total arrears balance contained within the above balance?
The outstanding term?
The rate of interest?
The type of loan contract?
The current repayment?
Is there a buildings insurance premium contained in the current repayment?
Is there a life assurance premium contained in the current repayment?

You can simply copy this list as many times as you need and write in the loan account number (s) on top of the page and write down the answer to each question or if you prefer you can copy the letter I have drafted below and sign.
By obtaining the answers to these questions, you will be able to give great assistance to your PIP or 3rd party adviser.
In addition to this information, you should also obtain 3 recent payslips or social welfare receipts and 3 to 6 months bank statements.
If you owe money to other creditors, ask for a statement of what is owed. A sample letter for creditors other than a lending institution is also attached below.

This is the first letter for lending institutions:
Your address
Address
Address
Address
To: Name of Bank Date
Address
Address
Address

Reference: Account number(s) XXXXXXXX

Dear Sir / Madam,
With regard to all of my accounts held in your bank, please let me have the following information,

The total balance outstanding on my account?
The total arrears balance contained within the above balance?
The outstanding term?
The rate of interest?
The type of loan contract?
The current repayment?
Is there a buildings insurance premium contained in the current repayment?
Is there a life assurance premium contained in the current repayment?
Have you appointed a case manager to who I should direct future correspondence?
If I request a face to face meeting with a representative will you facilitate such a meeting in my local area?

Please let me have a print out of the most recent statement of my account, and if that statement is for the previous year end, please let me have a print out of the account for the year to date.

Yours sincerely,

A N Other A N Other (if the account is in more than one name each person named on the account should sign)

This is the second letter, designed for creditors other than a lending institution:

Your address
Address
Address
Address
To: Name of Creditor Date
Address
Address
Address

Reference: Account number(s) XXXXXXXX

Dear Sir / Madam,

With regard to what I owe to you, please let me have the following information,

The total balance outstanding on my account, including any surcharges and penalties which have been added to the account?

Yours sincerely,

A N Other A N Other (if the account is in more than one name each person named on the account should sign)

If you have any questions regarding the above advice or the letters attached, please call me at 021 4893303 or 086 833 33 33

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