The choice of Personal Insolvency Practitioner, PIP, a debtor makes is critical. It is the PIP who will negotiate with the debtor’s creditors and attempt to get a write-down of their debts to a sustainable level. The PIP will also try to procure reasonable living expenses for the debtor after the revised monthly debt repayments have been agreed. While the ISI has issued minimum recommended expenses for debtors, there is latitude for the PIP to procure levels in excess of the minimum depending on their powers of persuasion. This could make a major difference to the debtor’s standard of living for the lifetime of the scheme (up to six years).  With access to the published register of Insolvency Service of Ireland most individuals will be reassured as to the competence and integrity of PIPs. But what other factors should a person considering appointing a PIP take into account?
One is geographic proximity. The legislation specifically requires that the PIP meet with the debtor-client at the very least in the early stages of the relationship. Much can be accomplished remotely, but the complexity of formulating a scheme in many cases will require a degree of hand-holding best achieved face-to-face.
While the UK personal insolvency business has seen the emergence of large scale operators there is good reason to believe this “industrial” model is less suited to the more complex Irish market. For example, in the UK the equivalent Individual Voluntary Arrangement system features cases of much smaller amounts than Ireland and exclusively deals with unsecured debt – this requires less intensive debtor-PIP interaction.
Indeed there are indications from both the ISI and, crucially, creditor banks, that they are more comfortable with local PIP-debtor arrangements than the more anonymous UK-type model. This is on the grounds that there is more PIP familiarity with what is in every case a unique and often complex debtor situation.

Often an imminent PIA will focus the creditors’ minds and sometimes the PIP may be able to negotiate an informal debt restructuring plan more appealing to the creditor.  In such cases a PIP is an approved Debt Management Firm by the Central Bank, such a PIP may carry more credibility with creditors.

Given the stakes, and the fact that the relationship will last for a number years, the PIP decision is a critical one for the debtor’s financial and psychological well-being.