Mr. Lorcan O'Connor:

We are required to ensure proposals are in compliance with the legislation. One of the qualifying criteria, which is pertinent to the Deputy’s example, is that the PIP must be satisfied that the proposal returns the borrower to solvency. If there is any grey issue around forbearance - kicking the can further down the road - it does not allow the PIP, personal insolvency practitioner, to come to the opinion that the person is truly solvent again. There has to be clarity as to how the debt is dealt with so the practitioner can satisfy himself - or herself that the person has truly returned to solvency. Beyond that, it is about ensuring both the debtor and the practitioner are fully informed of what is required of them to ensure the proposal is sustainable. It must be remembered that the debtor must also vote in favour of a proposal. If a debtor is not satisfied with the plan because it is only temporary forbearance, he or she can say “No” to the proposal.