Michael Healy-Rae (Kerry South, Independent)
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Question 353: To ask the Minister for Justice and Equality with regard to the insolvency Bill, his plans to ensure that the lenders will have an obligation or incentives to accept them; and if he will make a statement on the matter. [6269/12]

Alan Shatter (Dublin South, Fine Gael)
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The reform of personal insolvency law, the Heads of Bill which I have published, will involve the introduction of three new non-judicial debt settlement systems, subject to relevant conditions in each case. These are as follows:

Alan Shatter (Dublin South, Fine Gael)
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· A Debt Relief Certificate to allow for the full write-off of qualifying unsecured debt up to €20,000, after a one-year moratorium period for debtors with "no assets – no income";

Alan Shatter (Dublin South, Fine Gael)
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· a Debt Settlement Arrangement for the agreed settlement of unsecured debt of €20,001 and over with two or more creditors;

Alan Shatter (Dublin South, Fine Gael)
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· a Personal Insolvency Arrangement for the agreed settlement of both secured and unsecured debt of €20,001 to €3 million with one or more creditors. The Personal Insolvency Bill will also continue the reform of the Bankruptcy Act 1988, begun in the Civil Law (Miscellaneous Provisions) Act 2011 will include, critically, the introduction of automatic discharge from bankruptcy, subject to certain conditions, after 3 years in place of the current 12 years.

It is not for me to speculate as to the future conduct of any of the participants in an insolvency process. However, I am of the view that new personal insolvency laws, including the bankruptcy law reform, should provide a significant incentive for financial institutions to develop and implement realistic agreements to manage or settle debt with their customers. Such agreements should in time become the norm as the most sensible and cost-effective arrangements, particularly where the issue is one of dealing with repayment difficulties for a single major debt, secured or otherwise. These agreements could include measures to address mortgage arrears.

Jerry Buttimer (Cork South Central, Fine Gael)
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Question 354: To ask the Minister for Justice and Equality his plans to reform the law on mental capacity; and if he will make a statement on the matter. [6229/12]

Alan Shatter (Dublin South, Fine Gael)
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I refer the Deputy to my response to Question No. 193 of 12 January 2012 in which I said that: "The Government Legislation Programme, published on 11 January 2012, indicates that the Mental Capacity Bill is expected to be published in this session. The Bill will reform the law on mental capacity taking into account the Law Reform Commission's Report on Vulnerable Adults and the Law. The enactment of new mental capacity legislation is one of the core elements of the remaining work to be completed towards ratifying the UN Convention on the Rights of Persons with Disabilities."