What are the key features of a DSA?
The key features of a DSA are:
- A Debt Settlement Arrangement (DSA) is a statutory arrangement between an insolvent debtor and his/her creditors.
- A DSA can only include unsecured debts, secured debt cannot be included in a DSA.
- A DSA can last up to 5 years (with a possible 12 month extension).
- A DSA can only be obtained once in a lifetime.
- A DSA can only be sought through a Personal Insolvency Practitioner (PIP).
- In order to come into effect, a DSA must be formulated by the PIP, agreed by the debtor, approved by a qualified majority of creditors voting at a creditors' meeting, processed by the Insolvency Service of Ireland (ISI), approved by the appropriate Court and details of it registered on a public Register maintained by the ISI.
- A DSA will protect a debtor and his/her assets from legal proceedings and other actions which could otherwise be taken by unsecured creditors during the period the DSA is in force.
- A DSA which is successfully completed will discharge the debtor from his/her unsecured debts which are subject to the DSA, at the end of the relevant period.
- Details of a DSA (including its successful completion) will be recorded on a public Register.