Remember -- there will be no free lunch on debt deal
SOME hard choices are going to have to be made for those who want to get a deal to have smaller debts written off, writes Charlie Weston.
These people will be forced to ditch the expensive jewellery, forget the four-wheel drive and get rid of the high-cost TV.
The Government is adamant that people will only be allowed to own a car worth less than €1,200 or jewellery worth less than €400 if they want to get low-value debts written off.
Under the new personal insolvency legislation, people who have little or no income and few assets will be able to get up to €20,000 written off.
This will be known as a debt relief notice. It is expected to apply to those with no mortgage, but who have run up credit union or catalogue debts.
But there will be no free lunch. Applicants' disposable income will have to be below €60 a month.
If the debts are with a bank, then taxpayers' money will be used to write down the debts.
And credit unions are expected to be hit hard. That will mean less funds to pay dividends for other members.
Somehow, we are all set to lose on this one.