The weekend papers headlined that parents would have to stay at home as high childcare costs would not be counted as legitimate debt and neither would private healthcare. This may become the case but to date the guidelines on the new Insolvency legislation await publication. While the law has passed the structures have yet to
- info@donegallaw.ie
- 074 9382184
Tag: debt
The Central Bank’s Code of Conduct on Mortgage Arrears introduced the Mortgage Arrears Resolution Process (MARP), which banks must use when dealing with distressed home loans and to address mortgage arrears. Banks are obliged to engage with the borrowers to attempt to reach sustainable solutions, but its only effect is to defer repossessions. It’s up
Personal Insolvency Law is now regulated by the Personal Insolvency Act 2012 and the Bankruptcy Acts 1988-2012, since December 2012. The most significant change is the introduction of an automatic discharge period of three years. However, it is perhaps not as automatic as it looks when you realise that a further five year ‘Income Payments’
With the 12 year automatic discharge period cut to 3 years, there are Benefits in bankruptcy as a debt settlement remedy: Fees for legal advice and negotiation are provided for as part of process. The stigmatisation is diluted as the Economic Crash is seen as the cause. Fresh start, the bankrupt’s debts are wiped out.
Personal insolvency arrangement is the final debt settlement resolution process under the Personal Insolvency Act and is available to debtors with secured debt up to €3,000,000 and unsecured debt over a six-year period (with a possible one-year extension). A debtor may enter into a personal insolvency arrangement only once. Following discussions with the
Debt settlement arrangements (DSAs) are available under the new Personal Insolvency Act to debtors with unsecured creditors over €20,000. Section 49 of the act provides that the debtor must apply in writing to a personal insolvency practitioner including details of his financial affairs. Following receipt of this information, the personal insolvency practitioner shall hold
One of the new non-judicial resolution processes introduce by the Personal Insolvency Act is the debt relief notice (DRN). This only applies where a debtor has qualifying debts that amount to €20,000 or less. To be eligible for a DRN, the debtor must have a net disposable income of less than €60 per month, assets
The Ostrich approach does not work when dealing with debt. Problems will get worse if you do nothing. Burying your head in the sand will only end up with more costly action being taken. Engage with the creditor as soon as you can no longer meet repayments, don’t wait until the matter is passed over
It is important to know if your finances are heading in the right direction. If you’re going to reach your goals, or just trying to keep your head above water Budgeting is the key to financial success. Do a comprehensive budget, marking down truthfully your income and expenditure. Include all payments for debts, as this
The Personal Insolvency Act 2012 became law in 26 December 2012, but Statutory Instruments are needed to bring the various sections into effect. It reforms Ireland’s insolvency laws, providing a modern system addressing the situation of insolvent debtors. At present personal insolvency is governed by outdated bankruptcy laws. A significant change being introduced is the