Personal Insolvency Bill is good news for struggling mortgage holders

26/01/2012

System will allow people to stay in the family home while managing their debts
Fine Gael TD for Dublin North, Alan Farrell, has welcomed the Personal Insolvency Bill published by Ministers Alan Shatter and Michael Noonan this week and said it will allow people to stay in their family home while managing their debts.

“This legislation is hugely significant and should provide comfort to people who have found themselves in financial difficulty – especially those who are struggling to pay mortgages. In my own constituency of Dublin North, there are a multitude of first time buyers who bought at or near the peak of the boom. They are now trying to honour large mortgage repayments on reduced incomes mean these people are often left with next to nothing once the bills are paid.

“The Personal Insolvency Bill introduced by the Government aims help these people, and others like them, who are struggling to cope with their debts. A number of arrangements will be made available under the provisions of the Bill 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.

“A Personal Insolvency Service will be established to administer the new regime, with insolvency trustees appointed to liaise with creditors on behalf those in debt. It is hoped that the full legislation will be published by the end of April, and I hope the Service can be set up as soon as possible after that.

“This legislation is not designed to erase people’s debts but it will help people to manage their debts while remaining in their homes. There is a huge amount of stress associated with financial difficulty such as this and I hope that the provisions made in this legislation will help provide people with peace of mind and a way out of their difficulties.”