Billy Timmins (Wicklow, Fine Gael)
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To ask the Minister for Justice and Equality the position regarding the Personal Insolvency Bill; and if he will make a statement on the matter. [13472/13]

Alan Shatter (Dublin South, Fine Gael)
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The Personal Insolvency Act 2012, was passed by both Houses of the Oireachtas on 19 December, 2012 and signed into law by the President on 26 December, 2012.

The Act provides for the introduction of three new debt resolution processes, which though requiring approval by the court, are essentially non-judicial in nature:

- The Debt Relief Notice (DRN) will allow for the write-off of qualifying unsecured debt up to €20,000, subject to a three year supervision period.

- The Debt Settlement Arrangement (DSA) provides for the agreed settlement of unsecured debt, with no limit involved, normally over five years.

- The Personal Insolvency Arrangement (PIA) will enable the agreed settlement of secured debt up to €3 million, although this cap may be increased with the consent of all secured creditors, and unsecured debt without limit, normally over six years.

The Act also continues the reform of the Bankruptcy Act 1988, begun in the Civil Law (Miscellaneous Provisions) Act 2011 and will include, critically, the introduction of automatic discharge from bankruptcy, subject to certain conditions, after 3 years in place of the current 12 years.

The Act provides for the establishment of an Insolvency Service to operate the new insolvency arrangements. The Act provides for the Regulation of Personal Insolvency Practitioners. The Act also provides for the appointment of new specialist judges of the Circuit Court to deal with applications under the new debt resolution processes.

Part 6 of the Act was commenced on 18 January 2013. The provisions of Part 1 (other than section 6), Part 2 (other than section 13), sections 25 and 47, sections 126 to 141, Part 5 and Schedules 2 and 3 of the Personal Insolvency Act 2012 came into operation on 1 March 2013. The Insolvency Service was established on 1 March 2013 by Ministerial Order made on 20 February last.

The Act will be fully commenced as soon as all of the necessary preparations for administration of its provisions are finalised.