Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

The reduction in the bankruptcy period from 12 to 3 years, and the reduction from €1,400 to approximately €700 in the official costs associated with bankruptcy have made bankruptcy a more viable option for a debtor struggling with debt to return to solvency.

I am advised by my colleague the Minister for Justice and Equality, with responsibility for the Insolvency Service of Ireland, that a number of personal insolvency practitioners do not charge an upfront fee for an initial consultation. The Insolvency Service of Ireland does not prescribe practitioner fees. Fees are negotiated by the Personal Insolvency Practitioner in each individual case. Ultimately, such fees are paid out of funds available to creditors after Reasonable Living Expenses.

Additionally, in order to remove any perceived barrier to seeking help, the Insolvency Service of Ireland has suspended all application fees for debt solutions until the end of 2015. Previously, these fees were €100 for a Debt Relief Notice, €250 for a Debt Settlement Arrangement and €500 for a Personal Insolvency Arrangement.

At my request, the Citizens Information Board, together with the Money Advice and Budgeting Service (MABS), established an approved intermediary service to assist individuals through the application process for a Debt Relief Notice. Approved intermediaries do not charge a fee for their assistance to debtors applying for a Debt Relief Notice. To date, over 200 Debt Relief Notices have been granted.

I am satisfied that the combination of these measures makes the various services accessible.