The High Court has approved a Personal Insolvency Arrangement allowing a woman to write off approximately €4.2 million in debt owed to financial institutions.
Mr Justice Mark Sanfey approved the PIA for 54 year-old Assumpta Gaffney, an accounts administrator with a construction firm, who is married with two dependent children.
Under the terms of the PIA, Mrs Gaffney will retain her family home located at Mountain Lodge, Ballyleigh, Waterfall, Co Cork, for which she will continue to make mortgage repayments.
The mortgage on the property, worth an estimated €550,000, has been restructured.
Mrs Gaffney's creditors include ACC, AIB and Bank of Ireland.
As part of the PIA - which is to be 12 months' duration - a once-off lump sum payment of €50,000 from a third party is to be made to her creditors.
In addition, she will also surrender two properties, located in Ballykisteen, Co Tipperary, which are to be sold to satisfy part of her debts.
The PIA was put together by Mrs Gaffney's Personal Insolvency Practitioner (PIP), Judy Mooney of McCambridge Duffy, who was represented in the High Court by Keith Farry BL.
The court heard that Mrs Gaffney got into financial difficulties after several businesses involving her husband, John Gaffney, entered receivership, which he fully co-operated with.
She sought the services of a PIP after AIB brought repossession proceedings in respect of her family home.
The court heard this had taken a toll on Mrs Gaffney and her family, both financially and mentally.
Seeking the PIA's approval, Mr Farry told the court that the creditors would fare better under this arrangement compared to if Mrs Gaffney was to be adjudicated a bankrupt.
There were no objections to the PIA, which was approved by the judge.
