Thomas Johnson and Valerie Johnson approved for debt write-off

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Thomas and Valerie Johnson’s personal insolvency arrangements were approved by the High Court on 22 April 2024, allowing each to write off debt. Mr Justice Alexander Owens approved the interlocking arrangements after finding they met the statutory criteria.

Valerie Johnson will pay €1,316 to creditors in return for €2.66 million of debt being written off; Thomas Johnson’s separate arrangement provides for the same payment and a €2.66 million write-off. The couple will retain their Dunshaughlin home under the arrangements.

In an affidavit, Valerie Johnson said a €200,000 lump sum was required within six months of court approval and would come from the sale of her mother’s home. Under the PIA, the Dunshaughlin mortgage balance will be reduced to €275,000, with €665 mortgage payments during the six-month PIA and thereafter over an extended 11-year mortgage term. The outstanding balance of €343,109 will then be written off.

Personal insolvency practitioner Nicholas O’Dwyer said in an affidavit that the interlocking arrangements would provide a greater distribution to creditors than bankruptcy proceedings.