The Personal Insolvency Bill – published this week – will offer a lifeline to distressed mortgage holders and those overwhelmed by personal debt, Kilkenny Fine Gael TD John Paul Phelan has said.
The Heads of the Bill was published by the Government this week, and is due to be published in legislative form by the end of April. Deputy Phelan said it would allow people to remain in their own homes while getting on top of their financial affairs.
“People right across Kilkenny have been desperately in need of some form of help to allow them to get on top of a growing mountain of debt that for many average homeowners has got out of control,” he said.
“Trying to honour large mortgage repayments on reduced incomes mean these people are often left with next to nothing once the bills are paid.
“The Government wants to help these people and others like them, who are unable to cope with their debts. Under the provisions of the Personal Insolvency Bill, a number of arrangements will be made available, whereby a portion of personal or mortgage debt may be written off, as part of a repayment plan. Debt Relief Certificates will help out people with smaller debts, of less than €20,000, while Debt Settlement Arrangements can be reached for larger mortgage loans.”
The new legislation also includes the much-anticipated reformed bankruptcy arrangements, which will reduce the period of declared bankruptcy from 12 years to three years.
“A personal insolvency service will be set up to administer the new regime, with insolvency trustees appointed to liaise with creditors on behalf those in debt,” said Deputy Phelan.
“This will hopefully help to alleviate some of the stress associated with trying to reach agreement with banks and other creditors.”
