Seanad debates

Tuesday, 4 December 2012

Personal Insolvency Bill 2012: Committee Stage (Resumed)

 

7:25 pm

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

Amendment No. 55 will replace the current section 56 and substitute it with an improved and extended text on the process whereby the Insolvency Service refers an application for a protective certificate in respect of a debt settlement arrangement to the court. The new elements concern situations where the Insolvency Service is dissatisfied with the application and may require a revised application where a court requires further information. Where a court decides to hold a hearing, it may hold it otherwise than in public.

Amendment No. 56 from Senator O'Brien would add a reference to the debtor being able to object to the court in regard to the issuance of a protective certificate. There is no need to extend this appeal facility to a debtor as the debtor would not be aggrieved by the issuing of a protective certificate sought on his or her behalf by an insolvency practitioner. Clearly, the provision of such a certificate is for the benefit of a debtor and there would be no reason for the debtor to want to have the certificate set aside. Consequently, I do not see how this issue arises. What is being proposed would make no sense and would only serve to negate efforts to reach a settlement. Effectively it would mean the debtor applying for the protection afforded to him or her by the court to be removed, which would be a very odd application to make. The Senator seeks to make a further addition in regard to how the court should make orders, taking into account all the circumstances of the debt. It is objectionable to suggest that the court would not operate on a just and reasonable basis. Also, the proposed addition might risk a court rejecting the protective certificate sought for the protection of the debtor and for that reason I am opposed to this amendment.

Amendment No. 96 is similar in purpose to amendment No.55 and proposes the deletion of Section 91 and its substitution with an improved and extended text in regard to the process whereby the Insolvency Service refers an application for a protective certificate in respect of a personal insolvency arrangement to the court.

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