Alan Shatter (Dublin South, Fine Gael)

In line with a commitment in the programme for Government, a personal insolvency Bill is being developed in the Department of Justice and Equality. The Bill will provide for a new framework for the settlement and enforcement of debt and personal insolvency. The commitment made in the EU-IMF programme of financial support for Ireland is that the Bill will be published in the first quarter of 2012. It is my objective to publish the measure ahead of the EU-IMF deadline, if possible. There is a reasonable possibility we will achieve this. In developing the Bill, account is being taken of the Law Reform Commission's recommendations in its recent report on personal debt management and debt enforcement. That report provided an in-depth review of the personal debt regime. The economic and financial effects of some of the new arrangements being contemplated are being carefully assessed to ensure all relevant issues are addressed and their impact is fully anticipated and understood.

I am glad to inform the Deputy that earlier this week the Government approved my proposals for interim reforms to the law on bankruptcy. The details will be announced when the civil law (miscellaneous provisions) Bill 2011 is published. The Bill will provide for a significant reduction in the application period to the court for discharge from bankruptcy and will permit the automatic discharge of bankruptcies on the 12th anniversary of the adjudication order. According to the results of my inquiries, the new accelerated period of automatic discharge will affect approximately 365 existing bankruptcies. The impact of the personal insolvency Bill on debtors and creditors will depend on the form the Bill will take. It is clear that a good number of people could be affected. The key will be to achieve a balance, in so far as is possible, between the interests of creditors and debtors. The objective will be to create a system that avoids as much as possible the need for expensive bankruptcy procedures and court involvement.

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