Written answers

Tuesday, 16 January 2018

Department of Justice and Equality

Insolvency Service of Ireland

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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558. To ask the Tánaiste and Minister for Justice and Equality if creditors are permitted to sell on loans while a protective certificate under the Insolvency Service is in place covering those borrowings; the consequences of a breach in this area; and if he will make a statement on the matter. [55287/17]

Photo of Charles FlanaganCharles Flanagan (Laois, Fine Gael)
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As the Deputy will be aware, a Protective Certificate under the Personal Insolvency Acts is issued by the Courts, rather than by the Insolvency Service of Ireland.

Sections 62 and 96 of the Personal Insolvency Act 2012 set out the effects of the Court's issue of a Protective Certificate (under the Debt Settlement Arrangement, and Personal Insolvency Arrangement, procedures, respectively).

Those sections limit the actions that a creditor can take, with respect to the debt and the debtor, while the Protective Certificate continues in force: for example, initiating legal proceedings, prosecuting proceedings already initiated, executing a judgment or order against the debtor, taking any steps to enforce a security or contacting the debtor regarding payment of the debt.

I am advised that there is no moratorium under the Personal Insolvency Acts on the sale of loans by a lending institution during the Protective Certificate period. A loan sale does not affect the rights under the loan contract as between debtor and creditor.

Regulatory protections also continue to apply, during the Protective Certificate period and throughout the process.

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