On this page
Ireland offers three main debt solutions for people who cannot pay what they owe: a Debt Relief Notice (DRN) for unsecured debts up to €35,000, a Debt Settlement Arrangement (DSA) for larger unsecured debts, and a Personal Insolvency Arrangement (PIA) for people with secured debts such as a mortgage. Bankruptcy is now a 1-year process.
The three debt solutions at a glance
| Solution | Debts covered | Duration | Who it suits |
|---|---|---|---|
| Debt Relief Notice (DRN) | Unsecured debts up to €35,000 | 3 years | Low income and few assets |
| Debt Settlement Arrangement (DSA) | Unsecured debts over €20,000 (no upper limit) | 5–6 years | People with no secured debt |
| Personal Insolvency Arrangement (PIA) | Secured debt (such as a mortgage) up to €3m, plus unsecured debt | 6–7 years | Homeowners and mortgage holders |
Debt Relief Notice (DRN)
A DRN is for people with unsecured debts of €35,000 or less (such as credit cards, overdrafts and personal loans), little spare income and few assets. It is applied for through an Approved Intermediary. If granted, creditors cannot take action against you for three years, after which the debts are written off. You can only receive one DRN in your lifetime.
Debt Settlement Arrangement (DSA)
A DSA is for people with unsecured debts over €20,000 and no secured debt. A Personal Insolvency Practitioner (PIP) puts a payment plan to your creditors, usually lasting five years (or up to six with agreement). If the arrangement completes successfully, the remaining debts are written off. Creditors must approve the proposal.
Personal Insolvency Arrangement (PIA)
A PIA is the option for people with secured debt, most commonly a mortgage, up to €3 million (plus unsecured debts). It can restructure or write down part of the mortgage and spread repayments over six years (or up to seven with agreement). As with a DSA, it must be proposed by a PIP and approved by creditors.
Bankruptcy in Ireland
If a debt solution is not suitable, a person can be adjudicated bankrupt. The bankruptcy period in Ireland is now one year, after which the person is generally discharged from their debts. Bankruptcy has serious consequences, so it is normally a last resort after the three arrangements above have been considered.
How to apply
Applications are made through the Insolvency Service of Ireland (ISI). A DSA or PIA must be arranged by a Personal Insolvency Practitioner, while a DRN is made through an Approved Intermediary. Getting advice first is essential, because the option you choose affects your home, your credit record and your future borrowing.
Frequently asked questions
What is the difference between a DRN, DSA and PIA?
A DRN covers unsecured debts up to €35,000 and lasts three years. A DSA covers larger unsecured debts and lasts five to six years. A PIA covers secured debt (such as a mortgage) plus unsecured debt and lasts six to seven years.
How long does bankruptcy last in Ireland?
Bankruptcy in Ireland now lasts one year, after which the person is normally discharged from their debts.
How do I apply for a debt solution?
You apply through the Insolvency Service of Ireland. A DSA or PIA must be proposed by a Personal Insolvency Practitioner (PIP), while a DRN is made through an Approved Intermediary.
Will a debt solution affect my home?
A PIA can include your mortgage and help you keep your home in many cases. A DRN or DSA generally covers unsecured debts only, so your secured home loan is handled separately.
Debt problems can feel overwhelming, but the right arrangement can give you a genuine fresh start. If you are struggling with debt or need advice on the tax implications of an insolvency arrangement, talk to Bradán Accountants — we will point you in the right direction.
Sources
- Insolvency Service of Ireland (backontrack.ie)
- Citizens Information – Personal insolvency options
Talk to us
Need help with your accounts?
Get jargon-free advice from our Galway and Dublin accountants.
