Fine Gael Kerry TD, Brendan Griffin, has said the Personal Insolvency Bill published by Ministers Alan Shatter and Michael Noonan this week offers real solutions to the thousands of homeowners across Kerry and the rest of the country who are unable meet their mortgage repayments. Deputy Griffin added that those who were drowning in personal debts are also being given a lifeline by the proposed legislation.

“The mortgage crisis is one of the biggest challenges facing ordinary people in this country, and the Government is determined to help those who are incapable of paying their debts and have become caught in a spiral of mortgage arrears. I have spoken to people across South Kerry over the last number of months who are under severe pressure and feel utterly overwhelmed by their situation. Many people, due to a range of changed personal circumstances, simply do not have the money to keep up with their debts. The Personal Insolvency Bill presents a range of options that will directly address their problems.

“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. 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.

“Insolvency trustees will liaise with creditors on behalf those in debt, and they will work under the remit of a new Personal Insolvency Service. This will hopefully help to alleviate some of the stress associated with trying to reach agreement with banks and other creditors.

“These measures, aimed at those suffocated by debt, follow on from the Government’s Budget decision to increase mortgage interest relief to first time buyers who bought their homes at the height of the boom. This Government is committed to addressing the needs of the main casualties of the property bubble, by helping them to deal with their debts and get back on their feet.”

ENDS