Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I welcome the introduction of the Bankruptcy (Amendment) Bill 2015, the central core of which contains the objectives which together with my party colleagues I sought to achieve when I published the Personal Insolvency (Amendment) Bill 2015. I thank the Minister for adopting the central principles of that Bill and enacting them in to law. I also thank all Deputies who engaged in a synchronised advocacy of the Bill on the floor of this House, led by the redoubtable and knowledgeable, from a financial perspective, Deputy Peter Mathews.

The genesis of this Bill is a conversation at the kitchen table in my home in Ballynacargy one Friday evening with my two daughters, Aisling, who is a solicitor and, Niamh, who is training to be an accountant, both of whom, having listened to me speak about this issue on many occasions, urged me to do something to address it.

Bankruptcy is no walk in the park. Nobody who makes the decision to invest money or purchase a property does so with the deliberate intention of going bankrupt. That is a misconception. When a person is declared bankrupt the official assignee takes over responsibility for the administration of all of his or her assets and income, leaving that person paralysed in that regard. The official assignee also takes over responsibility for payment of creditors. However, security over an asset, namely, a mortgage on a home, is not impaired by the bankruptcy. Were it taken into account in regard to the bankruptcy, then peculiarly this would be for the better because under section 61(4) of the Bankruptcy Act the official assignee cannot dispose of a bankrupt's home without the permission of the High Court, which court has wide discretion in coming to a decision in that regard and has regard to the requirements and needs of the bankrupt and his or her dependants.

I detest the argument of moral hazard. Originally, moral hazard was the responsibility of the lender.

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