Living under the restrictive terms of a PIA for 5 long years has little appeal to Irish entrepreneurs and SME owners, the ones worst affected by Ireland’s recession and credit crisis. A willingness to speed up the process by the banks is indeed welcome news. And it makes perfect economic sense; the sooner the backbone of Ireland’s economy are freed from unsustainable debts, the sooner we have a productive economy and the sooner the banks are making money from extending credit again rather than tying up resources chasing much of what has already been provided for as bad debts. It’s time to look forward to a growth cycle but if both creditors and debtors are focused on the past, the scenery of low growth and credit crisis is unlikely to change. Typically our clients have little incentive to earn money to repay unsustainable loans. Who in their right mind would carry a pail of water a mile only to have it dumped into a desert? Better cordon off the desert, the debts, and tend to a smaller garden that someday will grow and expand, perhaps even beyond the desert. Clearly the faster the desert is cordoned off the faster we can start growing our gardens. This is where the Irish banks come in. Having been bailed out by the Irish taxpayer, some may argue the banks have a moral responsibility to fast-track these same tax paying insolvent debtors to recovery. Morals aside, it makes good economic sense.  Enter the Express PIA.

So what is an Express PIA?  Typically, when the PIP shows that there is nothing left to repay the creditors after Reasonable Living Expenses have been deducted from the debtor’s income and substantial negative equity exists; Bankruptcy is the likely option.  If the debtor can come up with a lump sum, usually donated by family and/or friends, this lump sum is then divided up amongst creditors and a fast track PIA agreed avoiding Bankruptcy and a full term PIA.