Under the PIA, Mr Shine , a married father of three and a sales assistant with Arcade Interiors Ltd, will continue to make payments on the home mortgage on foot of an approved interest rate of 2.3 per cent for 10 years. The mortgage has a 20-year term and the payments on it will increase after the ten years as his children, now aged between seven and 16, lose dependency status and complete their education.
The judge was told Pepper Finance DAC, whose debt is €362,000 under the mortgage, with the unsecured balance owed standing at €117,643, was withdrawing its objection to the PIA following agreement to implement a variation to it. The net household income of the family is some €3,500 out of which the living expenses are some €2,225 and the mortgage payment is €1,274, the court heard. There will be a total debtor lump sum contribution of €3,000 under the PIA. After the PIP fee of €2,143 is paid, there will be some €857 available for unsecured creditors.
Counsel noted the Bank of Ireland debt of €869,000 relates to a site in Westmeath, now valued at €5,000, which will be sold with the benefit of Mr Shine’s 50 per cent interest in that going to the secured creditor. Another site, at Boganfinn in Roscommon, with a debt of €2,500 and an agreed valuation of €20,000, will also be sold with the benefit of Mr Shine’s one third interest going to the secured creditor.