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.

At the High Court Mr Justice Mark Sanfey approved the PIA for 54-year-old Assumpta Gaffney, an accounts administrator with a construction company, who is married with two dependent children.

Under the terms of the PIA Ms Gaffney will retain her family home located at Mountain Lodge, Ballyleigh, Waterfall, Co Cork, for which she will continue to make mortgage repayments.

Under the terms of the PIA, the mortgage on the property, worth an estimated €550,000, has been restructured.

Ms Gaffney's creditors include ACC, AIB and Bank of Ireland. As part of the PIA, which is to be 12 months in duration, a once-off lump sum payment of €50,000 from a third party is be made to her creditors.

In addition, she will 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 Ms Gaffney's personal insolvency practitioner, Judy Mooney of McCambridge Duffy, who was represented in the High Court by Keith Farry BL.

Financial difficulties

The court heard she got into financial difficulties after several businesses her husband, John Gaffney, was involved in entered receivership, with which he fully co-operated.

She had sought the services of a PIP after AIB brought repossession proceedings in respect of her family home.

The court heard that this had taken a financial and mental toll on Ms Gaffney and her family.

Seeking the PIA’s approval, Mr Farry told the court the creditors would fare better under this arrangement than if Ms Gaffney was to be adjudicated a bankrupt.

There were no objections to the PIA, which was approved by the judge.