The High Court refused Michael Ennis’s appeal against the rejection of a proposed personal insolvency arrangement, leaving in place EBS Limited’s objection to the plan.
In a judgment delivered on 27 February 2017, Ms Justice Baker said the evidence did not satisfy her that the arrangement was sustainable or that Ennis was reasonably likely to meet its terms. The decision concerned an appeal from a Circuit Court ruling of 14 December 2016, which had upheld EBS’s objection.
Ennis, a self-employed carpenter, proposed reducing the mortgage debt secured on his principal private residence in Donore, County Meath, to €105,000. The proposal included interest-only payments for six years, additional monthly payments of €523 during that period, and writing off the remaining balance at its end. The judgment said the debt was more than €380,000 against a property valuation of €105,000.
EBS argued that the arrangement unfairly prejudiced it and questioned whether Ennis could afford the payments after the six-year term. Its objections included his payment history, the home’s condition and the absence of provision for necessary repairs and possible increases in child maintenance. The judgment records that EBS had obtained a possession order in January 2015.
The court noted that a valuation described the house as needing refurbishment, with no kitchen units or appliances, no functioning central heating and no running water. Ennis said he used bottled water and a local gym’s shower facilities, and that he was working to restore water. He also said a plumber friend had agreed to install central heating without charge. The judge found that he had not provided adequate evidence of the costs of making the house fit for continued occupation or how those costs could be met. She also said planning issues concerning extensions and an outbuilding had not been adequately addressed.
The judge found the financial evidence insufficient to establish that the proposed payments were affordable. Ennis had described himself as confident of his income prospects, but had not supplied a work contract or a clear explanation of the projections relied on in his application.
The court also considered his conduct during the process. Ennis had said he stopped making payments to the mortgage account in September 2016 and instead saved the money, but the judge said the bank statement provided did not establish a history of those deposits. She found that he had stopped payments without consulting his personal insolvency practitioner or legal team and had not disclosed the discrepancy before an affidavit was used for his appeal. The judge concluded that he had not engaged bona fide with the process.
The High Court therefore refused the appeal, upholding EBS’s objection. The ruling did not approve the proposed arrangement.