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Insolvency Service of Ireland Administration

Dáil Éireann Debate, Tuesday - 19 November 2013

Tuesday, 19 November 2013

Questions (490)

Terence Flanagan

Question:

490. Deputy Terence Flanagan asked the Minister for Justice and Equality if there are plans to increase the household monthly expenditure allowance for persons who enter an insolvency arrangement with the Insolvency Service of Ireland (details supplied); and if he will make a statement on the matter. [48960/13]

View answer

Written answers

One of the functions of the Insolvency Service of Ireland (ISI) under the Personal Insolvency Act 2012 is to prepare and issue guidelines as to what constitutes a reasonable standard of living and reasonable living expenses.

Initial guidelines were published as part of the ISI information campaign in April 2013 and an update guide issued in June 2013 which reflected adjustments for inflation (up until March 2013). The guidelines produced by the ISI are a modified version of the consensual budget standards model originally developed in Ireland by the Vincentian Partnership for Social Justice which has conducted research in Ireland for over 12 years on developing necessary expenditure figures for different types of households. The guidelines received a general welcome from debtor advocacy groups for offering insolvent debtors protection in negotiations with creditors.

It should be borne in mind that the guidelines set a base level for a reasonable standard of living and reasonable living expenses. Where either a Debt Settlement Arrangement or a Personal Insolvency Arrangement is proposed, the decision on the reasonableness or otherwise of living expenses will be a matter for the creditors to determine on a case-by-case basis with the Personal Insolvency Practitioner acting to facilitate debtors and creditors in working out an arrangement which is acceptable to both.

The ISI is required under the provisions of the Personal Insolvency Act 2012 to update the guidelines at least once a year so the next iteration of the guidelines would be due to be issued in June 2014. I am advised by the ISI that there are no immediate plans to update the guideline figures, which are available on the website of the ISI, www.isi.gov.ie.

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