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Personal Insolvency Practitioners

Dáil Éireann Debate, Thursday - 19 December 2013

Thursday, 19 December 2013

Questions (231)

Niall Collins

Question:

231. Deputy Niall Collins asked the Minister for Justice and Equality the role of personal insolvency practitioners in the use of a bankruptcy option under the new personal insolvency legislation; and if he will make a statement on the matter. [54790/13]

View answer

Written answers

The Personal Insolvency Act 2012 provides that a personal insolvency practitioner shall advise a debtor of his or her options for addressing his or her financial difficulties. Such advice shall include other option(s), such as bankruptcy, which may be available to the debtor and the general effect of such option(s). Such advice is given in the context of the appropriateness for the debtor to make a proposal for, or enter into a Debt Settlement Arrangement or Personal Insolvency Arrangement. The legislation specifically provides that where the advice of a personal insolvency practitioner is that the debtor should not make a proposal, or enter into an arrangement, the personal insolvency practitioner shall notify the Insolvency Service of that fact and the appointment of the personal insolvency practitioner shall come to an end.

During the Debt Settlement Arrangement and Personal Insolvency Arrangement processes, a personal insolvency practitioner is obliged, when calling a creditors' meeting, to provide a report to the creditors describing the outcome for creditors and indicating where relevant, how that financial outcome under the terms of the proposal is likely to be better than the estimated financial outcome for such creditors if the debtor were to be adjudged bankrupt. Furthermore, while a Debt Settlement Arrangement or Personal Insolvency Arrangement is in place, the personal insolvency practitioner has an obligation to monitor the implementation of such an arrangement and advise or provide information to the debtor in certain circumstances. The Insolvency Service of Ireland has no role in regulating personal insolvency practitioners outside of the Debt Settlement Arrangement and Personal Insolvency Arrangement processes.

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