Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context

Question 109: To ask the Minister for Justice and Equality his views on the establishment of an independent debt resolution agency as proposed by the free legal advice centres; and if he will make a statement on the matter. [22703/12]

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context

I would refer the Deputy to my reply to Question No. 93 of 7 February, 2012, tabled by him, which indicated the following:

The Deputy will be aware that, having obtained Government approval for urgent drafting by the Office of the Attorney General and Parliamentary Counsel, I published the text of the General Scheme of the Personal Insolvency Bill on 25 January last. There is a requirement under the EU/IMF Programme of Financial Support for Ireland to publish the Bill in Quarter 1 of 2012 – since extended to end of April. The Bill will also fulfil the relevant commitment in the Programme for Government. The Bill will provide for a new framework for settlement of debt and for personal insolvency. The proposed reform will consist of following main elements:

· a revised judicial process (bankruptcy) to provide for a 3 year period for automatic discharge from bankruptcy from the current 12 years.

· the introduction of a new non-judicial debt settlement process for unsecured debt only amounting to over €20,000, (Debt Settlement Arrangement).

· the introduction of a new non-judicial debt settlement process for both secured and unsecured debt amounting to over €20,000, (Personal Insolvency Arrangement) (secured debt will primarily relate to property debt, be it residential, commercial and investment).

· the introduction of a new debt forgiveness process (Debt Relief Certificates) for low level indebtedness where the debtor has effectively no income and no assets and has unsecured debts amounting to up to €20,000.

Critical to the operation of the new debt settlement processes will be the establishment of an Insolvency Service. It is intended that this will be an independent statutory agency. I have nothing further to add to that reply other than to mention that publication of the Bill will be end-June 2012.End of Take