Jonathan O'Brien (Cork North Central, Sinn Fein) | Oireachtas source

I move amendment No. 3:

In page 4, to delete lines 6 to 17 and substitute the following:"(2) In any proceedings brought by a mortgagee seeking an order for possession of land to which the mortgage relates in a case to which this section applies, and where no previous engagement with a personal insolvency practitioner has taken place the court, shall:

(a) adjourn proceedings for a period of at least six months;

(b) instruct the mortgagor to consult with a personal insolvency practitioner with a view to the making of a proposal for a Personal Insolvency Arrangement;

(c) instruct the personal insolvency practitioner to make a proposal for a Personal Insolvency Arrangement under the Act of 2012; and

(d) instruct the mortgagee to cover the initial costs of the personal insolvency practitioner from its own resources, including any costs arising from consulting with the personal insolvency practitioner with a view to making an application for a personal insolvency agreement and any costs resulting for the mortgagee rejecting a proposal from the personal insolvency practitioner.".

I apologise on behalf of Deputy Pádraig Mac Lochlainn who tabled the amendment. He was unable to attend because he is chairing a meeting of the Joint Committee on Investigations, Oversight and Petitions.

The purpose of amendment No. 3 is to ensure that where a bank seeks repossession of a property, the court must insist that the borrower seek the services of a personal insolvency practitioner and that a proposal for a personal insolvency arrangement be made to the lender. This would mean a repossession could not be made prior to the involvement of the personal insolvency service. It would also ensure that the bank would bear any initial costs that arise in the course of making such an agreement.

Amendment No. 5 is a straightforward proposal to change the period of the adjournment from a maximum of two months to a minimum of six months.

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