Minister for Justice Alan Shatter today published the long-awaited Personal Insolvency Bill aimed at reforming insolvency laws, some of which have been in place for over a century.
The Bill includes a number of new non-judicial debt resolution processes including:
- a debt relief notice to allow for the write-off of qualifying debt up to €20,000, subject to a three year supervision period;
- a debt settlement arrangement for the agreed settlement of unsecured debt over 5 years;
- a personal insolvency arrangement for the agreed settlement of secured debt up to €3 million (though this cap can be increased) and unsecured debt over 6 years.
The Minister said the Bill will provide a modern insolvency process in Ireland which addresses the obligations of debtors and the rights of creditors in a “proportionate and balanced way”.
“I am convinced that new personal insolvency laws will provide a significant incentive for financial institutions to develop and implement realistic agreements to resolve debt issues with their customers,” Mr Shatter added.
The Bill was approved by the Cabinet at its meeting last Tuesday.
Source: The Irish Times.