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The High Court refused to approve proposed personal insolvency arrangements sought by a couple to restructure their home mortgage, dismissing their appeal from the Circuit Court. The court found insufficient evidence that the applicants could comply with the terms of the arrangements either during or after the one-year statutory period, highlighting the highly speculative nature of the future income projections and significant shortfalls in reasonable living expenses. The court determined that the arrangements would unfairly prejudice the secured creditor by turning the mortgage into a long-term, predominantly interest-only loan with a large residual balance to be repaid through uncertain means decades later. The applicants' poor payment history and inadequate explanation for past mortgage arrears further undermined the proposal, and the court concluded the arrangements were unaffordable and required payments exceeding what was available for a reasonable standard of living. The orders of the Circuit Court were affirmed; costs were adjourned.
personal insolvency arrangement – mortgage restructuring – secured creditor – reasonable standard of living – affordability – Circuit Court appeal – insufficient income – arrears – future income speculation – debtors" payment history – Personal Insolvency Acts 2012-2021 – interest-only mortgage – residual debt – costs adjournment
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