Personal Insolvency in Ireland: Debt Arrangements and the Insolvency Service

Personal insolvency in Ireland is the set of formal debt solutions that sit alongside bankruptcy for individuals who cannot pay their debts. The Insolvency Service of Ireland (ISI) oversees them, and the best known are the Debt Relief Notice, the Debt Settlement Arrangement and the Personal Insolvency Arrangement. This guide explains what each is, who is involved, and what the official pages say (and do not say) about the workplace. It is about individuals; for the company side, see our guide to voluntary liquidation under the Companies Act 2014.

This is general information, not legal or financial advice. Anyone in debt should speak to MABS, an Approved Intermediary or a Personal Insolvency Practitioner about their own situation.

What the Insolvency Service of Ireland is

According to the ISI's own "About" page, it is an independent statutory body established on 1 March 2013, and its stated objective is to restore insolvent persons to solvency. Its functions are set out under the Personal Insolvency Act 2012. The page lists functions that include:

• monitoring how Debt Relief Notices, Debt Settlement Arrangements and Personal Insolvency Arrangements operate;
• considering Debt Relief Notice applications and processing Protective Certificate applications;
• authorising, supervising and regulating Approved Intermediaries and Personal Insolvency Practitioners;
• issuing guidance on reasonable living standards and expenses; and
• keeping registers of Debt Relief Notices, Protective Certificates, Debt Settlement Arrangements and Personal Insolvency Arrangements.

The page also notes that the ISI deals with bankruptcy administration under the reformed bankruptcy legislation. The About page refers to a 2019 to 2021 strategic plan, so it may not reflect the latest position; check the ISI site for current information.

The three arrangements at a glance

Citizens Information (page edited 6 May 2025) describes the three procedures side by side. The figures below are as shown on that page at the time of writing. Limits and time periods can change, so check the current page before relying on them.

The same page says only one of the DRN, DSA, PIA or bankruptcy can be in use at a time, and that each of the three procedures can be used once in a lifetime. It also says that deliberately stopping or underpaying creditors while setting up a procedure may make an applicant ineligible. Bankruptcy is described as a separate High Court process.

The Debt Settlement Arrangement in more detail

The ISI describes a Debt Settlement Arrangement as an insolvency solution for people with unsecured debts such as credit cards, loans and overdrafts. It is a formal agreement with creditors that allows some of the debt to be written off, and the person pays a percentage of their overall debt over a specified period. Mortgage-related debt is dealt with under the Personal Insolvency Arrangement instead. The ISI page does not state its own date and refers to guides from 2016 and 2022, so treat it as a general description and check the detail elsewhere.

Citizens Information (page edited 8 January 2024) adds the following points about how a DSA works:

• Who can apply: a person with unsecured debts, such as personal loans, credit cards, overdrafts, credit union loans and utility arrears, and no prospect of repaying them within 5 years. There are also conditions about how long the debts have existed and about previous insolvency procedures.
• How to apply: through a Personal Insolvency Practitioner authorised by the ISI. The practitioner advises whether the person meets the conditions for a DSA, advises on any other options, and helps prepare a Prescribed Financial Statement. The application goes to the ISI, which checks it and forwards it to the court.
• Protective certificate: once issued by the court, it gives a protective period during which creditors may not start or continue legal proceedings, enforce judgments or contact the person about the debt without their agreement. The page gives an initial period of 70 days with possible extensions.
• Creditor vote: the practitioner calls a creditors' meeting, and creditors representing at least 65% of the person's total unsecured debt must agree.
• Reviews: the practitioner reviews the person's circumstances at intervals of no more than 12 months.
• If it fails: the page describes arrears-based grounds for ending a DSA. If it ends without successful completion, the person becomes liable for the covered debts, less payments made.

Who helps: MABS, Approved Intermediaries and practitioners

The three roles are easy to confuse. In short:

• MABS (the Money Advice and Budgeting Service) describes itself on its own site as a free, independent, confidential and non-judgmental service. Its page says it is funded by the Citizens Information Board, works mainly with people who have problem debt, and that MABS advisers also act as Approved Intermediaries for clients using a Debt Relief Notice.
• Approved Intermediaries prepare Debt Relief Notice applications. The ISI says they are qualified debt advice professionals appointed by the ISI.
• Personal Insolvency Practitioners prepare and administer DSA and PIA proposals. The ISI says they are regulated by the ISI. Citizens Information says practitioners must state their charges clearly before appointment and that there is no set scale of fees.

Citizens Information also says the ISI has waived its own fees for the three procedures until 31 December 2026. Because that date is close, anyone planning an application should check the ISI site for the current position.

Personal insolvency is not company insolvency

These procedures are for individuals. A limited company that cannot pay its debts is dealt with under different rules, and this guide does not cover company insolvency. We have not covered it here. Directors who are worried about a company should read the company-law material and take professional advice.

What it can mean in a workplace

Employers and managers often ask whether an employee's insolvency arrangement affects payroll. The official pages say very little on that point. The Citizens Information pages on the DSA and the PIA do not mention employers or wage deductions. What they do say about work is that an arrangement cannot require a person to sell assets reasonably necessary for their employment or business unless the person agrees.

One related Revenue page is worth knowing about. Revenue's Local Property Tax pages list personal insolvency as one ground on which payment of Local Property Tax can be deferred, where the person has a Debt Settlement Arrangement or Personal Insolvency Arrangement. The Revenue page says it accepts these claims on a self-assessment basis, and that the deferred tax and interest become payable once the arrangement stops having effect.

Our suggestion: if an employee tells a manager they are in financial difficulty, treat it as confidential, avoid asking for detail, and point them to MABS or to the ISI information line rather than offering a view on which procedure suits them. The legal basics of dealing with staff matters are covered in our guide to new managers' legal responsibilities. If payroll receives any court or creditor document, ask for professional advice before acting; we do not give legal advice on that here.

A practical approach for finance and payroll teams: agree in advance who handles sensitive requests, keep the discussion to the people who need to know, and record what was agreed in the normal way. Finance staff who advise clients on debt arrangements should also keep their own knowledge up to date, which is one reason many professionals plan regular training; see our overview of CPD training for finance professionals in Dublin.

Where to check the current rules

Because limits, periods, fees and thresholds are changed from time to time, use these official sources on the day you need them:

• the ISI website, for the procedures, registers and the information line;
• Citizens Information, for plain-language summaries with page-edited dates;
• MABS, for free and confidential money advice; and
• the Personal Insolvency Acts on the Irish Statute Book, if you need the legal text. This guide does not quote section numbers from the Acts; check the legislation if you need them.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

Is a Debt Settlement Arrangement the same as bankruptcy?

No. Citizens Information describes bankruptcy as a separate High Court process, and says only one of the DRN, DSA, PIA or bankruptcy can be in use at a time.

Does a Debt Settlement Arrangement cover a mortgage?

According to the ISI, a DSA covers unsecured debts such as credit cards, loans and overdrafts, and mortgage-related debt is dealt with under the Personal Insolvency Arrangement.

Can someone use these procedures more than once?

Citizens Information says each of the three procedures can be used once in a lifetime. Check the current page for the detail, including what applies to people who have completed a previous procedure.

Will an employer be told if an employee enters an arrangement?

The official pages do not say that employers are notified, and they do not mention employers at all. The ISI keeps public registers of arrangements, so confidentiality should not be assumed. Anyone concerned should ask their adviser what appears on the registers.

Where can someone start?

Citizens Information gives the MABS helpline as a starting point, and the ISI page gives an information line for contact details of practitioners and intermediaries. Check both sites for current numbers and opening hours.

Personal insolvency rules change, so always confirm the current position with the ISI or an adviser before acting.