Michael Comiskey (Fine Gael) | Oireachtas source

I welcome the Minister to the House and I thank him and his Department for the work and commitment they have put into this Bill, which is a key commitment in the programme for Government. I hope the Bill will simplify and destigmatise many aspects of debt settlement, result in practical solutions for the personal and mortgage debt problems that many people face and allow many to become active participants in the economy and the recovery of the country. The Bill addresses the sad reality that there are people who have reached unmanageable levels of debt. Many of these people are on low incomes, have relatively small amounts of debt, do not own any assets and have no real prospect of repaying their debts. The Bill addresses all levels of debt, reflecting the fact that what may be a worrying debt for one person may represent small change for another.

I welcome the regard for the family home expressed as part of the ethos of the Bill. Consideration will be given to debtors' continued ownership and occupation of their principal private residences. No doubt these provisions will be welcomed by many people. Further relief may be drawn from the prominence of non-judicial procedures in the Bill, because court costs often simply become another financial burden to people.

Often, stigma attaches to individuals who have become insolvent or require debt settlement arrangements. Some of these individuals may have genuinely found themselves unable to make repayments on outstanding debts due to non-payment of goods or services, or due to difficult trading conditions which have propelled them into debt that might previously have been avoidable. These people have a genuine need and may be restored to solvency and become vital contributors to the Exchequer again or go on to develop new businesses. We cannot simply write people off, leaving them to struggle with repayments that they could never realistically make.

I welcome the reform of the bankruptcy legislation and the reduction of automatic discharge from debt from the current 12 years to three years. However, I acknowledge the balance contained in the Bill, which provides flexible options for debtors while addressing the rights of creditors. The Bill does not seek to allow solvent debtors to relinquish their responsibilities to creditors. I hope the range of measures will encourage those in financial difficulties to engage more readily and at an earlier opportunity with creditors to put in place debt management solutions. The issue of debt has isolated many individuals. This legislation and the debt management process to be introduced subsequent to the enactment of the Bill will assist those in genuine difficulties to find workable solutions. They will be given options to work their way out of debt. The aim of the Bill is not to benefit those who simply wish to avoid their obligations. Again, I thank the Minister and his Department for their work on the introduction of the Bill.