Personal Insolvency Implementation

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ronron

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Dear all,
On TV3 tonight, Eddie Hobbs forecast that the implemtation of the Personal Insolvency legislation will not be until the end of 2013. Is this true?
 
ronron said:
Dear all,
On TV3 tonight, Eddie Hobbs forecast that the implemtation of the Personal Insolvency legislation will not be until the end of 2013. Is this true?
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How can it be any sooner. The bill hasn't even been debated, never mind passed. And a whole procedure and organisation has to be set up before it starts, and no doubt a few court cases as people or banks 'test' it.
 
The government estimates that it will be effective in March 2013.

They have already recruited the head of the Personal Insolvency Service and he is apparently recruiting staff at present.

The bill is working its way through the Dail.

There might be slippage on March, but I think that Eddie is being too pessimistic.

It's hard to know.

Brendan
 
Of course it will be the end of 2013. The crisis hit late 2008, they could have done something about this earlier and it is as clear as day that they deliberately did not do anything. They simply wanted people to be squeezed as much as possible and to pay back as much as possible on their own in that 5 years.

And playing into their hands mugs like myself have been paying back debts. I've learned a lot in the last few years.
 
Personal Insolvency Bill has cleared Dail and Seanad. All it needs now is Michael D's signature. (Courtesy of Newstalk Twitter A/c)
 
This is what Alan Shatter said on completion of the passage of the Bill through the Dail.

The Taoiseach was asked, quite properly, by Deputy Micheál Martin this morning about the coming into force of this legislation. I take this opportunity to comment briefly in that regard.



Mr. Lorcan O'Connor has been appointed director of the new insolvency agency and a number of staff are already recruited.



Remaining staff will be recruited as part of an ongoing process.



It is envisaged that the guidelines to be published by the insolvency agency will be completed in the first quarter of 2013



These will deal with some of the issues we have covered today such as what is meant by reasonable expenses and so on.



Regulations will be prepared with regard to the licensing of personal insolvency practitioners.


Software is being put in place for the electronic exchange of information under the legislation and the delivery of information between personal insolvency practitioners, the insolvency agency and the Courts Service.



It is a target of the insolvency service to have its website up and running by 1 March to provide the maximum information and guidance to the general public with regard to the mechanisms available to deal with debt resolution processes.


Documentation is being prepared setting out the information applicants must provide in respect of a debt relief notice, debt settlement arrangement and personal insolvency arrangement. It will be possible for all of these data to be filled in online.


It is anticipated, once the regulations have been published, that the licensing process in respect of personal insolvency practitioners will proceed during April and May.


In short, our objective is to have the measures set out in the legislation operational as soon as possible.



As I said, the insolvency service intends to have its online functionality up and running as early as possible in March.




My Department will do what it can to ensure it is available. In the meantime, the insolvency service has established an ongoing liaison with the Money Advice & Budgeting Service and other bodies engaged in assisting individuals with debt relief.




...
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So when can someone with an unsustainable mortgage start the process?

I don't see why they can't start the preliminary work today.

They should first contact their bank and state their intention to avail of a PIA.

They should point out to the bank that it would be in everyone's interest if they do a deal now without the costs of a PIA.

That will take a few months of negotiations first before they know whether they need to apply for a PIA or not.
 
Brendan, I fully agree with you that people can get the ball rolling immediately by starting to talk to their banks about their own particular situations.In fact if they dont get a discussion started with their bank about their arrears, they will be ineligible to apply for a PIA

One of the eligibility criteria for a PIA under section 87(g) of the bill / act requires the applicant to make a statutory declaration to the effect that they have cooperated with any secured creditor (ie their mortgage holder)
in respect of any arrears on their principal private residence for a period of at least six months, in accordance with that banks process for handling mortgage arrears, as approved by the central bank. For most banks this will be the MARP process.

So yes, the 1st step for anyone planning to apply for a PIA is to get the discussions started with their own bank immediately to establish if they can arrive at a settlement with their own bank before applying for a PIA. If after six months have elapsed and discussions with their own bank have not yielded anything, then they are free to apply for a PIA.
 
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