Bank rejects Wallace plan to keep home in €911,000 debt case
A bank has rejected proposals by politician Mick Wallace aimed at staving off the reposs- ession of his Dublin home and is now seeking information on the value of his pension.
AIB Mortgage Bank is seeking to repossess the Ireland South MEP's residence on Clontarf Road over an unpaid debt of €910,800.
Dublin Circuit Civil Court was told yesterday that while Mr Wallace was making payments of €2,000 a month to the bank, he was getting further and further in arrears as the monthly interest payments due on the loan were €2,500.
The court heard that a written proposal submitted by Mr Wallace on June 19 in a bid to resolve the matter had been rejected by the bank on June 28.
Counsel for Mr Wallace, Jack Tchrakian, said his client also received a letter from the bank's solicitors asking for several items of information, including the valuation of his pension entitlements.
He said the politician would need six weeks to get the information and documents and to work out the encashment value of the pension.
Brian Conroy, for the bank, asked the court to set a hearing date for the repossession application.
"The position is that while some payments are being made, the arrears are increasing in circumstances where the payments aren't sufficient to service his interest," he said.
The court heard Mr Wallace entered bankruptcy in December 2016 and had since been discharged.
Mr Tchrakian said that while Mr Wallace was technically no longer in bankruptcy, his client remained under an agreement to continue making payments to the Official Assignee until the end of next February.
Judge Jacqueline Linnane was told by Mr Tchrakian that there was probably no reality to the repossession matter being dealt with in the next three months.
He sought an adjournment until October, saying that by that stage it would be quite clear the direction negotiations are taking.
The judge adjourned the matter until then for mention.
"If it hasn't been resolved or if a proposal hasn't been put through that is acceptable to the bank, there is going to be a hearing date," she said.
The house is described as Mr Wallace's primary residence. The then builder borrowed €825,000 to buy it in 2004.