Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

All right. The final point pertains to strategic default and what a borrower does about repaying the unsecured share of his or her debt. There has been much talk about what the veto actually means and this must be cleared up once and for all. Let us take a scenario of someone who owes €250,000 on a property that now is worth €150,000. The person concerned enters a restructuring process with the bank, the property is dealt with at its real value and gets written down by €100,000. My understanding is the aforementioned €100,000 that has been written down becomes unsecured debt. While it still remains as debt, it is now is unsecured debt as opposed to being secured against the property. Am I right in this case?