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Personal insolvency arrangement confirmed despite failure to disclose payment of rent
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High Court confirms the coming into effect of a proposed personal insolvency arrangement (PIA), which had previously been adjourned to allow the debtor to explain various matters on affidavit, on the grounds that: (a) the discrepancy between the Prescribed Financial Statement (PFS) and the Standard Financial Statement had been adequately explained; (b) although it was unsatisfactory that the debtor, and more particularly the personal insolvency practitioner, had failed to disclose the existence of the rental payments in his PFS, this should not result in a dismissal of the application for a PIA; and (c) the proposed arrangements do not unfairly prejudice the interests of the objecting Fund, who would fare better under the proposed arrangements than it would in the event of the bankruptcy.
Application to confirm personal insolvency arrangements - the court, in a separate judgment, had previously come to conclusions in relation to the bulk of the issues which arise for consideration in these cases - matter had been adjourned to allow the debtor to deal with three final objections on affidavit - the objections arose from discrepancies between what was stated in a Standard Financial Statement (“SFS”) completed by the debtor in January 2016 at the request of the objecting Fund and the information provided in his Prescribed Financial Statement (“PFS”) completed in October 2016 in support of his application for a protective certificate under the Personal Insolvency Act 2012 - whether the proposed arrangements unfairly prejudiced the interests of the objecting Fund and were inequitable - whether there was a reasonable prospect that confirmation of the arrangements will enable the objecting Fund to recover the debts due to it to the extent that the means of the debtors reasonably permit - whether the requirements of making of a complete and accurate prescribed financial statement by a debtor had been satisfied - personal insolvency arrangement approved.
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