Who is “Debt Manager” for?

“Debt Manager” is a personalised service by RSM Farrell Grant Sparks for individual investors who have significant debt exposure primarily on rental and other property investments.

The following are three examples of the types of client who have most to benefit from the service.

Example #1

Mr and Mrs A invested in six residential properties between 2000 and 2006, at the height of the property boom. Four are on interest-only mortgages and two have 10-year terms outstanding.

Five properties are currently let but the rental income is insufficient to meet all loan repayments.

In 1999 they also bought a holiday home in Spain with additional borrowings against their family home. Rental income from the Spanish property has fallen year-on-year since acquisition.

Mr and Mrs A are both teachers and their income is sufficient to meet mortgage repayments on their home. But they are worried that the bank may foreclose on the properties and that their home may be at risk.

Example #2

Mr B set up a light engineering company in 1996. The company borrowed heavily from the bank in 2005 to invest in equipment and property renovations.

The loan was secured against the property and supported by a personal guarantee from Mr B.

In 2007 his company went into liquidation and the property was sold. The sale failed to clear the loan and now his personal guarantee has been called upon by the bank.

He is currently in full-time employment with an engineering firm and has a substantial mortgage on his family home.

In 2002 he also bought a commercial property in an industrial estate outside a provincial town. There are 14 years left to run on the loan and the property has been vacant since June 2008 with Mr B unable to service loan repayments.

He also owes money to Revenue and to a local builder for renovations to the property.

Mr B has recently been served with a demand letter from his bank. He is worried about foreclosure by the bank and whether he could made bankrupt.

Example #3

Mr C set up his interior design consultancy in 1997 and has continued to trade as a sole trader. During the property boom he bought 15 apartments in various locations. The borrowings were serviced by rental income and partly by Mr C’s personal income from his trade.

With the slowdown he has been unable to pay trade creditors and with only 10 properties currently let and his income falling, he is unable to meet loan repayments. He is worried that the bank may foreclose on the properties and on his home.

He has also read recently that a creditor can place someone into bankruptcy for non-payment of debts and he is worried that this may happen, as his relationship with one creditor in particular has become very confrontational.
Learn more

If you have a similar situation to these problems outlined above, call us today on +353 (0) 1 418 2000 or mail: debtmanager@rsmfgs.ie for more information about “Debt Manager” or to arrange a free initial consultation.

Related services

Read more about personal insolvency and our “Debt Manager” service