Neale Richmond
Ceist:573. Deputy Neale Richmond asked the Minister for Justice her plans to propose amendments to the Personal Insolvency Act 2012; and if she will make a statement on the matter. [23367/20]
Amharc ar fhreagraTuesday, 15 September 2020
Ceisteanna (573)
Freagraí scríofa
This important legislation is kept under review, and any further action needed to ensure that it operates effectively will be taken. My Department is currently engaged in preparatory work for two sets of changes to the legislation.
Firstly, my officials are considering a small number of requirements under the Personal Insolvency Acts which may be difficult or impracticable to comply with in the context of the COVID-19 pandemic. Preparation is well advanced and the intention is to bring forward a short urgent Bill for Government approval, in order to make any necessary amendments as soon as possible.
Secondly, my officials are already working to complete the major statutory review of the Personal Insolvency Acts, following the earlier public consultation already held, and now, in addition, to ensure that this review will also take full account of the latest developments and particularly, the significant economic effects of the COVID-19 outbreak.
I expect the review report to be finalised by the end of November, following further consultations with the Department of Finance, as required by s. 141 of the Acts, and with the Office of the Attorney General.
The Insolvency Acts 2012 to 2015 already provide for a number of mechanisms to help individuals who are unable to pay their debts by reason of insolvency, namely Debt Relief Notices, Debt Settlement Arrangements, and Personal Insolvency Arrangements (which apply to people with secured debts such as mortgages and unsecured debt) and the insolvency legislation and infrastructure has already been extensively reviewed and developed since 2012.
Key reforms introduced include the section 115A court review process (which removed the so-called ‘bank veto’) enacted in 2015, interlocking reforms to bankruptcy legislation also enacted in 2015, and the introduction in 2016, and extension in 2019, of the Abhaile Mortgage 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 and in certain cases legal aid.