The first insolvency deal involving a family with mortgage borrowings was approved by creditors at a meeting today.

The Dungarvan-based personal insolvency practitioner Mitchell O'Brien said it showed the new system of dealing with personal debt was working.

Mr O'Brien said the deal would leave the borrower with a sustainable debt.

He said all the creditors supported the arrangement, including three large banks.

The case involved an owner-occupier mortgage and a buy-to-let loan.

The total amount of debt involved was €600,000.