Completing your PIA or DSA and rebuilding your credit

Financial distress can be overwhelming, but a personal insolvency arrangement (PIA) or a debt settlement arrangement (DSA) offers a structured path to recovery. Understanding the final steps of these arrangements helps clients and debtors know what to expect on completion. Below is a summary of the key stages in concluding a PIA or DSA.

Completion process for a personal insolvency arrangement (PIA)

1. Final contribution review

All contributions—whether monthly payments, lump sums or both—must be paid in full as per the court-approved terms. A final review identifies any discrepancies, and if any are found, the debtor is contacted to resolve them.

2. Secured debt review

PIAs may include secured debts. A review ensures that any mortgage or asset-related obligations are settled. Creditors confirm mortgage status, voluntary sales, or any mortgage-to-rent (MTR) applications. This usually happens 30 days before closure, but delays may occur if creditors respond late. If any issues arise, the debtor must resolve them.

3. Final fee and dividend settlement

All payments are reviewed, including practitioner fees and creditor dividends. Remaining balances are calculated, and bank details are verified to process final payments.

4. Legal compliance and certification

Once all payments are made, the process follows Section 125 of the Personal Insolvency Act 2012. The personal insolvency practitioner (PIP) formally notifies the debtor, creditors and the Insolvency Service of Ireland (ISI). The debtor is discharged from all unsecured debts listed in the arrangement. Secured debts remain unless a partial write-down was included. The ISI updates the Register of Personal Insolvency Arrangements and issues a completion certificate and report to all parties.

Note: Keep a copy of your court-approved arrangement, completion certificate and completion report.

Completion process for a debt settlement arrangement (DSA)

1. Final contribution review

All agreed payments must be completed in line with the court-approved terms. A final reconciliation checks for discrepancies, which must be resolved before closing.

2. Issue resolution

Creditors confirm the arrangement has been fully executed. Any disputes or outstanding matters must be addressed before finalisation.

3. Final fee and dividend settlement

Payments made throughout the arrangement are reviewed. Once final amounts are confirmed, bank details are verified and final distributions processed.

4. Legal compliance and certification

The process follows Section 86 of the Personal Insolvency Act 2012. The PIP notifies all parties of completion. The debtor is discharged from all included unsecured debts. The ISI updates the Register of Debt Settlement Arrangements and issues a completion certificate and report.

Note: Keep a copy of your court-approved arrangement, completion certificate and completion report.

Post-completion: updating the Central Credit Register (CCR)

Completing a PIA or DSA improves your credit profile. Once finalised, the Central Credit Register (CCR) is updated to show that financial obligations have been met.

Unsecured debts are marked as closed and move from the ‘Summary of Active Credit Agreements’ to the ‘Summary of Closed Credit Agreements’. These remain visible for five years from the date of completion.

If your PIA included secured debt, the CCR will reflect that the mortgage is now up to date, replacing any arrears or legal action status.

While some records remain for up to five years, successful completion signals financial rehabilitation. Over time, as no further missed payments occur, your creditworthiness improves.

We advise that the longer the time since completion, the easier it becomes to access credit.

Tip: You can request a free credit report once a year on the Central Credit Register website.

A return to solvency

Completing a PIA or DSA marks a turning point. With debts resolved and obligations met, you can move forward with a fresh start.

This process not only brings relief but also supports long-term financial stability. By understanding the steps involved, debtors can make informed decisions, and advisers and creditors can offer effective support.