Dáil Éireann Debate, Tuesday - 17 April 2018
54. Deputy Martin Heydon asked the Minister for Justice and Equality the status of his Department's review of existing personal insolvency Acts; the main aspects of the current legislation he plans to address in such a review; when the review will be completed; and if he will make a statement on the matter. [16528/18]
Amharc ar fhreagraMy Department is currently finalising a review of Part 3 of the Personal Insolvency Acts. Part 3 is the core of the legislation, dealing with the operation in practice of the three personal insolvency mechanisms – Debt Relief Notices, Debt Settlement Arrangements, and Personal Insolvency Arrangements. This review also responds to the commitment in the Programme for a Partnership Government to review personal insolvency thresholds and processes, including for SMEs.
In practice, the insolvency legislation has already been extensively reviewed and developed since 2012. Key reforms already introduced include the section 115A court review process (which removed the so-called ‘bank veto’) and the Abhaile Mortgage Arrears Resolution Service (which in effect ensures that borrowers at risk of losing their homes due to mortgage arrears can access free independent expert financial and legal advice to get solutions into place).
Nevertheless, we have always said that we will keep this important legislation under review, and will take any further action needed to ensure that it operates effectively.
My officials have completed extensive work on the review, which included a public consultation launched last year. A range of detailed submissions were received and these have been carefully analysed. Furthermore, a number of additional issues and concerns emerged in recent months, after those submissions concluded. The review was extended to allow these also to be addressed. They have been discussed in detail with the relevant stakeholders, including the Insolvency Service, personal insolvency practitioners and banks.
I expect to receive a report from my officials on the review towards the end of May. In consultation with the Minister for Finance, I expect shortly afterwards to finalise a report to be laid before the Oireachtas and to bring proposals to Government to address the review’s recommendations – including, subject to Government agreement, proposals for legislative change.
