Overview: Personal Insolvency Bill

The Personal Insolvency Bill published today represents a radical overhaul and modernisation of Ireland's personal insolvency law. The Bill introduces a comprehensive and balanced regime to address personal insolvency as required by Ireland's IMF country programme. It envisages the creation of an Insolvency Service of Ireland to oversee the legislative regime. Under the Bill, creditors will continue to hold the whip hand over debtors: Creditors holding 65% by value of debt must approve any Debt Settlement Arrangement (DSA) or Personal Insolvency Arrangement (PIA); Secured creditors must get the value of their security; Criminal and civil penalties are provided for failures to disclose assets by debtors; There is a reinstatement of debts if a debtor fails to honour a PIA or DSA. There is a "triple lock" to get into the main processes of DSA or PIA requiring an insolvency practitioner, the Insolvency Service and the court to be satisfied that the debtor qualifies. There