Mr. Christopher Lehane:

It relates to a couple of points, the first of which is destigmatising bankruptcy. There is a reality to be faced by people who have got into that level of indebtedness, namely, whether bankruptcy is a bigger problem or a solution to the problem. It wipes out unsecured debts and makes one's capacity to pay one's mortgage possible. Ironically, one may go from an interest-only capacity to interest and capital. When one is reassessed after bankruptcy, one has the power to pay the full mortgage whereas one previously did not. If a spouse is involved, he or she is jointly and severally reliable for the full mortgage. In the classic situation, if one spouse enters into bankruptcy, the other is still on the hook for the full amount.

I set out my policy clearly to address the reality of the situation. The issue becomes one of whether €5,000 is a reasonable amount. If a spouse owns one half and I have applied a value of €5,000, at what stage could they approach me - it is a time of their choosing, not mine - with €5,000 and get their family home back, given their capacity to repay the mortgage?