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Personal Insolvency Act

Dáil Éireann Debate, Wednesday - 9 April 2014

Wednesday, 9 April 2014

Questions (127)

Ann Phelan

Question:

127. Deputy Ann Phelan asked the Minister for Justice and Equality based on the information provided by the Insolvency Service of Ireland that only four deals were struck involving mortgage debt in the past three months; the number of deals that have been struck since the establishment of the Personal Insolvency Service; the cost of the deals struck; his views on re-examining the Personal Insolvency Act with a view to amending same to make it more accessible in general as persons are not able to engage the service as they are unable to afford the services of the PIP in most cases; and if he will make a statement on the matter. [16841/14]

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Written answers

The numbers of all arrangements at various stages of progress are set out in the Insolvency Service of Ireland's Statistical Report - Q1 2014. This Report is available on the ISI's website, www.isi.gov.ie and will be updated on a quarterly basis.

The Statistical Report highlights that as of 31 March 2014 there were:

- 55 Debt Solution Arrangements approved (44 Debt Relief Notices (DRNs), 7 Debt Settlement Arrangements (DSAs) and 4 Personal Insolvency Arrangements (PIAs).

- 523 cases are now in progress, comprised of 82 DRNs, 121 DSAs and 320 PIAs.

- 70 Protective Certificates have been issued by the Courts. These give protection to debtors against legal action by creditors for a period and allow Personal Insolvency Practitioners (PIPs) 70 days in which to develop an arrangement.

- 66 bankruptcies in the first Quarter of 2014 which is a greater number than the whole of 2013.

It is not possible at this time to provide an analysis of the cost of an arrangement as their life cycles vary and can run from three to seven years. Our personal insolvency legislation is not set in stone. I have repeatedly and consistently said that if the new measures need amendment, then I will introduce whatever changes are necessary to ensure their success. I have responded swiftly where any desirable technical changes have been identified and have already introduced a number of useful amendments during last year.

Both my Department and the ISI will keep the operation of the legislation under review and I think it is important now that everyone gives the new measures some time and space and that we evaluate the efficiency of the changes only after an appropriate interval of time. Fees will be negotiated by the PIP with the debtor in each individual case. I am advised that a number of practitioners have indicated that they will not charge an up-front fee for an initial consultation. Insofar as practitioner fees associated with the development of DSAs and PIAs are concerned, the ISI does not prescribe practitioner fees, these fees will be negotiated with an individual debtor by the PIP in advance of a case proceeding and will be deducted from the amount of money an individual debtor is calculated as having available to pay their creditors during the term of the arrangement.

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