A Personal Insolvency Arrangement has been approved by the High Court that will allow a 47-year-old Cork man write off over €3.4m in debts for €30,000.

On Monday Mr Justice Alexander Owens approved a PIA in respect of John Maloney a project manager with a development company, of Chestnut Haven, Ballyclough, Kilworth in Co. Cork.

His main creditor was financial fund Cabot Financial, which had acquired loans he had given guarantees on several years ago and which was owed over €3.4m.

The court heard Mr Maloney was involved in several property development projects, for which he obtained loans on foot of personal guarantees given in respect of loans from ACC and Ulster Bank.

These included a nursing home development that was not successful, and he was was part of a partnership to develop lands in Co. Cork, which also did not work out.

Over the years he had worked with his creditors to deal with his debts and dispose of the assets.

Under the PIA Mr Maloney - whose background is in construction and who lives in rented accommodation with his wife and young child owned by his mother-in-law, would provide a lump sum of €35,000, €5,000 of which will cover the costs of his insolvency application, to his creditors.

Arising out of his debts he sought advice from Personal Insolvency Practioner John Butler, and entered the insolvency process. Arising out of that Mr Butler. represented by Deirdre Miller Bl, asked the High Court on Monday to approve Mr Maloney's PIA.

The court was told that his creditors would do better under the PIA compared to if Mr Maloney was adjudicated a bankrupt.

There were no objections to the PIA, which is 12 months in duration which on completion will allow Mr Maloney return to solvencv, from being approved.