Confident Debt & Mortgage Restructuring in Dublin
Ireland’s economy is poised to improve by 6 percent this year; making it the fastest growing in the European Union. Yet, the housing crisis continues to snare 100,000 homeowners unable to pay their mortgages. Relief is on the way with a new insolvency system seeing a record number of people apply for bankruptcy.
Bankruptcy
Whether beginning a family or a new business, there is a lot to think about on the financial front. Planning for a rainy day often takes a backseat to everyday life. Business opportunities sometimes ebb and flow while families grow. One day, the rainy day shows up and financially it can take a toll.
Making the choice to declare bankruptcy is not an easy one for those who cannot entirely fulfill, or even partly, fulfill, secured and unsecured debt. Bankruptcy is meant to allocate assets equitably to creditors and to protect the individual. With a lot of emotion around the decision, it is easy to become overwhelmed.
The solution? Contacting a personal insolvency practitioner to navigate the dos and don’ts of bankruptcy; personally and professionally. An individual will be found guilty of an offence if he/she:
- Does not reveal bankruptcy when obtaining a loan or other credit competence of €650 or more;
- Does not divulge when acting in a name other than the name used in the bankruptcy; and;
- Acts a receiver, liquidator, manager, auditor or director of any company without court permission.
Mortgage Restructuring:
Buying a home has long been considered a rite of passage. When work is fluid and the family is growing, paying the mortgage isn’t a problem. Sometimes bad things happen to good people, like accidents or being laid off from work, and suddenly that mortgage payment becomes an issue.
Individuals restructure their mortgage for any number of reasons in Dublin, including home renovations projects and debt consolidation. Unfortunately, not everyone begins the mortgage restructuring process when they begin to have trouble meeting the payment obligation and often end up facing eviction and repossession.
Speaking to an impartial, third-party mediator about all the options available may help an individual retain their property. Here’s how a mortgage is restructured:
- A portion of the mortgage may be immediately written off as a loss for the lender.
- The interest rate may be condensed.
- The terms of the mortgage may be lengthened.
Debt Consolidation
Some people choose to consolidate current mortgages and temporary debt into a new loan with one affordable payment. If an individual is serious about regaining his/her financial stability, debt consolidation is a good short-term solution. However, there is also a downside to the lower interest rate; namely with the new loan period longer than the initial loan an individual can end up spending more money in the long run. A classic instance of penny wise, pound foolish.
A secondary disadvantage for some individuals is the allure of borrowing again; often ending up right where they began with the idea they will consolidate again in the future. Debt consolidation is not intended to be used for anything other than an opportunity to regain financial footing. Using it as carte blanche to spend irresponsibly can end in home repossession and bankruptcy. The exact things it sets out to avoid.
Knowing how to deal responsibly with debt from the beginning will help avoid some of the pitfalls of a lacking economy, though, most people facing bankruptcy did not make financially poor decisions. Personal insolvency practitioners, like DebtSolv, have one goal: impartial guidance to protect the right of clients during a stressful time while successfully negotiating a more affordable consolidated payment to improve financial health. Call today to learn more about how we can help.