The High Court approved a Personal Insolvency Agreement (PIA) allowing a woman to write off around 4.2 million euros in debts to financial institutions.
r Judge Mark Sanfey approved the AIP for Assumpta Gaffney, 54, a construction company account administrator, married with two dependent children.
Under the PIA, Ms Gaffney will retain her family home at Mountain Lodge, Ballyleigh, Waterfall, Co Cork, for which she will continue to make mortgage payments.
Under the PIA, the mortgage on the property, estimated at € 550,000, was restructured.
Ms Gaffney’s creditors include ACC, AIB and Bank of Ireland. Under the PIA, which is to last 12 months, a single lump sum payment of € 50,000 from a third party must be paid to its creditors.
In addition, it will also cede two properties to Ballykisteen, Co Tipperary, which are to be sold to settle some of its debts.
The PIA was developed by Ms Gaffney’s personal insolvency practitioner Judy Mooney of McCambridge Duffy, who was represented in court by Keith Farry Bl.
The court heard that she had been in financial difficulty after several businesses of her husband, John Gaffney, were involved in a receivership, with which he fully cooperated.
She had sought the services of an insolvency practitioner after AIB initiated refoulement proceedings for her family home.
The court heard they had taken their toll on Ms Gaffney and her family both financially and mentally.
Seeking PIA approval, Mr Farry told the court creditors would fare better under the arrangement than if Ms Gaffney were to be declared bankrupt.