Saturday 10 December 2016

Consumer allowed to write down mortgage debt as part of new Insolvency Bill

Independent.ie reporters

Published 25/01/2012 | 13:02

SOME consumers will be allowed to write down mortgage debt as part of new Government plans to deal with insolvency.

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It has approved the publication of the Personal Insolvency Bill which will also involve non-judicial debt settlement systems.

Consumer deals will need a majority of creditors such as banks to agree deals on a case-by-case basis.

And these settlements would be non judicial arrangements.

The deal, which are subject to conditions, include:

- Debt Relief Certificates allowing for a full write-off of qualifying unsecured debt up to €20,000, after a one-year moratorium period;

- Debt Settlement Arrangements for the agreed settlement of unsecured debt of €20,001 and over;

- And Personal Insolvency Arrangements for the agreed settlement of both secured and unsecured debt of €20,001 and over.

Announcing the plans, Justice Minister Alan Shatter said the moves are necessary to "address the financial difficulties of general insolvency; mortgage debt and negative equity."

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