Charles Flanagan (Laois-Offaly, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Insolvency Acts 2012 to 2015 already provide for a number of mechanisms to help individuals who are unable to pay their debts by reason of insolvency, namely Debt Relief Notices, Debt Settlement Arrangements and Personal Insolvency Arrangements (which apply to people with secured debts such as mortgages and unsecured debt).

In practice, the insolvency legislation has already been extensively reviewed and developed since 2012. Key reforms introduced include the section 115A court review process (which removed the so-called ‘bank veto’) enacted in 2015, interlocking reforms to bankruptcy also enacted in 2015, and the establishment in 2016, and extension in 2019, of the Abhaile Mortgage Resolution Service in effect ensures that borrowers at risk of losing their homes due to mortgage arrears can access free independent expert financial and legal advice and in certain cases legal aid.

Nevertheless, we have always said that we will keep this important legislation under review, and will take any further action needed to ensure that it operates effectively. My Department is currently engaged in preparatory work for two sets of legislative changes to the legislation.

Firstly, my officials are considering certain specific formal or procedural statutory requirements which may be difficult or impracticable to comply with due to COVID-19 restrictions, including a small number of requirements under the Personal Insolvency Acts. Subject to Government formation and to reconstitution of both Houses of the Oireachtas, the intention is to bring forward for Government approval, a short urgent Bill, in order to make any necessary amendments as soon as possible.

Secondly, my officials are already working to complete the major statutory review of the Personal Insolvency Acts, following the earlier public consultation already held, and now, in addition, to ensure that this review will also take full account of the latest developments and particularly, the significant economic effects of the Covid-19 outbreak.

I expect the review report to be finalised by September, following further consultations with the Department of Finance, as required by s. 141 of the Acts, and with the Office of the Attorney General. That timetable, as the Deputy will appreciate, is of course subject to the legislative priorities that will be decided in the new Programme for Government.