The Insolvency Service of Ireland (ISI) appeared this afternoon before the Oireachtas Joint Committee on Finance, Public Expenditure and Reform to brief members on recent developments within the service. ISI Director Lorcan O’Connor updated the Committee on current timelines and targets, as well as the progress made in areas of debt management and reform since the ISI was officially established in March.
“Our objective is to help restore people who are insolvent to solvency in a fair, transparent and equitable way,” said Lorcan O’Connor. “The new debt reliefs being introduced will help tackle the serious problem of personal debt that we face in this country. The ISI will be in a position to accept applications in mid-August, just five months after the establishment of the service. Behind all of the statistics are people living in genuine distress, under a weight of debt and anxiety. This is what has motivated the ISI team to make the new debt solutions available as quickly as possible."
Mr O’Connor outlined to the Committee the next steps that need to be completed in order for the ISI to start accepting applications in August:
· The ISI will begin authorising Personal Insolvency Practitioners (PIPs) and Approved Intermediaries (AIs) at the end of July. People will then be able to meet authorised practitioners straight away. It will take a number of weeks before a "critical mass" of Practitioners is in place.
· The ISI IT system needs to be fully operational. At the end of this week, the IT Division of the Department of Justice and Equality is due to handover the ISI’s IT system for complete end-to-end testing involving MABS, potential PIPs and the Courts Service.
· The remaining provisions of the Personal Insolvency Act need to be commenced, along with the passing and commencement of various amendments contained within the Courts Bill.
“All of this means that the first Debt Relief Notices (DRN) should issue in early September, as well as the first Protective Certificates that will cover people applying for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA). The new arrangements offer an efficient and effective means to tackle problem debt without resorting to bankruptcy,” said Mr O’Connor.
As well as the ISI’s organisational targets, a series of key milestones have been achieved since the end of October 2012, including:
· Enactment of the Personal Insolvency Act at the end of December 2012;
· Formal establishment of the ISI on 1st March 2013;
· Launch of ISI information campaign in April 2013;
· Publication of Regulations governing the authorisation of Personal Insolvency Practitioners and Approved Intermediaries in June 2013.
“I firmly believe that the new debt reliefs are not just good for debtors but are also in the interest of creditors by offering a fair way to tackle what is a very large problem for everyone,” said Lorcan O’Connor. “Ultimately, it’s in all of our interests to return insolvent people to solvency, ensure their well being, and give them a second chance.”
For further information on the new debt arrangements visit www.isi.gov.ie, or phone the ISI’s Information Line (076 106 4200).
ENDS
For media queries please contact:
Judith Kieran, Ph:086-3687881
John Warren, Ph: 076 106 4248
Email: press@isi.gov.ie
Notes for Editor
Summary of New Debt Arrangements in Ireland: Arrangement Type of debt covered Value Duration Can Only Apply through
Debt Relief Notice Unsecured (and some secured in certain cases) Up to €20,000 3 years Approved Intermediary
Debt Settlement Arrangement Unsecured No limit 5 years (+1) Personal Insolvency Practitioner
Personal Insolvency Arrangement Unsecured and secured No limit on unsecured Up to €3m secured (though cap can increase if agreed) 6 years (+1) Personal Insolvency Practitioner
About Insolvency Service of Ireland (ISI):
The Personal Insolvency Act 2012 was signed into law on 26 December 2012. The Insolvency Service of Ireland (ISI) is an independent statutory body established under the aegis of the Department of Justice and Equality. The Insolvency Service of Ireland helps restore people who are insolvent to solvency in a fair, transparent and equitable way. The ISI was established by Ministerial Order on 1st of March, 2013.
Since the launch of its information campaign on 18 April 2013, the ISI website has received approximately 40,000 visits and the information line has been contacted on over 3,000 occasions.