A Louisburgh farmer who owed €2.3 million to creditors has had over half of his debt written off.
John Walsh (59) will avoid paying €1.2 million which saves his home and farm under a court approved personal insolvency arrangement (PIA).
The deal comes following an application to Castlebar Circuit Court.
This PIA, according to the Irish Independent, is one of several in recent years whereby farms, as a core asset necessary to generate income, have been saved from resale or repossession.
Having branched out into the construction industry in the late 90’s, Mr. Walsh ended up with significant debts following the property crash in the forthcoming decade.
Included in the debts is an outstanding mortgage of €695,000 on his home with Start Mortgages, an apartment worth just €100,000, the court was told.
The biggest of his creditors was Everyday Finance, which was owed close to €930,000 in debts bought from AIB.
Despite Everyday Finance objecting the arrangement, claiming that it did not comply with the Personal Insolvency Act, the arrangement was approved by Judge Christopher Callan.
The mortgage was written down to €100,000 to be paid off over 20 years.
Farm debts are also to be restructured for a 20 year payment, while Mr. Walsh must surrender buy-to-let properties.
More details on this story can be found in today’s Irish Independent.
(pic credit to Devlin Farm Life)
