Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

That is reasonably straightforward. An existing bank account will either be in the black or the red. If it is in the black, the money in it comprises part of the overall resources. Where there is a debt settlement or personal insolvency arrangement, there will be engagement with the personal insolvency practitioner who will make, having obtained a full disclosure, proposals to creditors as to what arrangements might be put in place. If an account is very much in the black, despite the existence of a range of other debts overshadowing the account, some of the money in it might have to go into the pot to pay the creditors. Other sums therein may not. There is nothing in the legislation stipulating the freezing of a bank account, but, clearly, if one's bank account is in the red, one's personal insolvency practitioner will have to notify the financial institution. I presume that if the financial institution is giving the debtor some leverage to have an overdraft, it will put a stop to the overdraft growing further during the process. Ultimately, it will be for the financial institution to determine whether the account will continue to be operated; there is nothing in the legislation stating it should not. I presume financial institutions that want to be paid will see an advantage in maintaining an account if the account holder is in employment and has a salary paid into it. I presume the financial institutions will want to put a block on an overdraft facility because one could not have somebody in that arrangement building an overdraft and paying the financial obligations that arise pursuant to the arrangement. There is nothing in the legislation stating a debtor party to a debt settlement or personal insolvency arrangement cannot maintain an account. However, one cannot run up debt.