A Personal Insolvency Arrangement has been approved by the High Court which allows a woman to write off about €4.2Million 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 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.
Under the terms of the PIA 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 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 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 Practioner, 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 her husband, Mr John Gaffney, was involved in entered receivership, which he fully co-operated with.
She had sought the services of a PIP after AIB brought repossession proceedings in respect of her family home.
The court heard that the had taken a toll on Mrs Gaffney and her family both financially and mentally.
Seeking the PIA's approval Mr Farry told the court 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.