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

Section 6 of the Personal Insolvency Act 2012 provided for the repeal of sections 87 to 109 of the Bankruptcy Act 1988, which had the effect of abolishing arrangements in bankruptcy. The rationale for this was that the new debt resolution mechanisms in the 2012 Act, in particular the personal insolvency arrangement mechanism, will offer debtors the possibility of arranging a repayment plan with their creditors without having to go through a bankruptcy process. However, the 2012 Act did not make sufficiently clear that any arrangements existing at the time of the repeal of sections 87 to 109 would continue. Amendment No. 12 addresses this by inserting a new section 86A to make clear that no new petitions for arrangements can be presented once the provisions of section 33 of this Bill come into operation. Amendment No. 13 arises as a consequence of amendment No. 12.