Written answers

Tuesday, 29 January 2013

Department of Social Protection

Personal Insolvency Act

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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To ask the Minister for Social Protection if she will confirm that under the terms of the Personal Insolvency Bill 2012, all pre-existing debt advisory services, in particular State funded ones, who will likely perform several of the functions established under the Bill will be adequately resourced to provide such advice; if she will detail any steps he has taken in this regard; and if she will make a statement on the matter. [54441/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Personal Insolvency Act 2012 provides for a Debt Relief Notice for persons with no assets or income with unsecured debts of up to €20,000. With the assistance of an approved intermediary, a person may apply for a Debt Relief Notice which will allow for the full write-off of qualifying unsecured debt after a three year supervision period.The Citizens Information Board, which has the statutory responsibility for the Money Advice and Budgeting Service (MABS) has agreed to my request that MABS be an approved intermediary for the purpose of processing applications for Debt Relief Notices. Those who can avail of Debt Relief Notices are typically part of the MABS core client cohort of people on low incomes in debt or in danger of falling into debt.

Sanction has been given for 16 temporary staff to be assigned to MABS for up to 2 years, to establish an Approved Intermediary Service (AIS) for the purposes of processing Debt Relief Notices as part of the new Insolvency Service. It is envisaged that the service will be mainstreamed across the MABS network over that period. An implementation process is underway and the CIB/MABS are working closely with the new Insolvency Service to ensure that the AIS will be operational in time for the establishment of the Insolvency Service. I am satisfied that MABS has sufficient available resources to undertake this important new statutory role and to continue to provide an excellent service to assist people with debt difficulties.

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