The Central Bank now regulates ‘debt advisors’ who are people that make debt solutions which are neither bankruptcy or in the personal insolvency space. Informal agreements made directly with banks are a very popular choice and often have good outcomes when financial institutions engage in the process.
Informal arrangements tend to be a working solution that allow you (in general) to keep your assets, they have several advantages:
- They tend to have lower professional fees.
- You usually end up keeping your assets.
- They normally don’t involve any massive changes in terms of going into an official administrative process or being named on registers etc.
- They are more private, while the other solutions have registers and may require the publishing of your name.
The issue many people have with informal arrangements is that the bank often hold the balance of power and may expect more of you than it is possible to give. They can (in theory) result in you living below the minimum standards that you would have in an insolvency solution and there is no set end date or deadlines. In fact, with solutions such as a ‘split mortgage’ there could still be no final solution even thirty years down the line.
This makes informal solutions unpopular in terms of perception, but the lower fees, non-insolvency process foundation and privacy also make them the most popular.
Bankruptcy Advice doesn’t offer informal arrangements except in cases where you inadvertently may be a client of the accountancy or legal firm and it is incidental to their business.