Fine Gael Tipperary South TD, Tom Hayes, has said the Personal Insolvency Bill published by Ministers Alan Shatter and Michael Noonan this week will give a vital lifeline to distressed mortgage holders. Deputy Hayes added that the proposed new legislation will also provide relief to those overwhelmed by personal debts.
“Many people in Tipperary have spoken to me in recent months about personal difficulties they are facing trying to make ends meet due to spiralling mortgage debt. Trying to honour large mortgage repayments on reduced incomes mean these people are often left with next to nothing once the bills are paid. And if an unexpected expense arises, mortgage repayments may go unpaid, leading to a build-up in arrears.
“The Government wants to help these people, and others like them, who are unable to cope with their debts. Under the provisions of the Personal Insolvency Bill, a number of arrangements will be made available, whereby a portion of personal or mortgage debt may be written off, as part of a repayment plan. Debt Relief Certificates will help out people with smaller debts, of less than €20,000, while Debt Settlement Arrangements can be reached for larger mortgage loans.
“This means that the Bill will help not only those in mortgage arrears, but also those who are utterly overwhelmed by credit card bills, car loans and overdrafts. These people have been desperately in need of some way to get out of their situation; and now the Government is giving it to them. The final element of the legislation is the reformed bankruptcy arrangements, which will reduce the period of time that a person will be considered bankrupt from 12 to 3 years.
“A Personal Insolvency Service will be set up to administer the new regime, with insolvency trustees appointed to liaise with creditors on behalf of those in debt. This will hopefully help to alleviate some of the stress associated with trying to reach agreement with banks and other creditors. The Government has said it hopes to have the full legislation published by the end of April, and I hope the Service can be set up as soon as possible after that.”
ENDS