Distressed mortgage holders offered lifeline by new Insolvency Bill — Mulherin

Fine Gael Mayo TD, Michelle Mulherin, has said the Personal Insolvency Bill published last week will give a vital lifeline to distressed mortgage holders and those overwhelmed by personal debts. The Heads of the Bill was published by Ministers Alan Shatter and Michael Noonan this week, and it is hoped it can be published in its legislative form by the end of April.

“The key element of this proposed new legislation is that it will allow people to remain in their own homes while getting on top of their financial affairs. People right across Mayo have been desperately in need of some form of help to allow them to get on top of a growing mountain of debt that for many average homeowners has got out of control. Trying to honour large mortgage repayments on reduced incomes mean these people are often left with next to nothing once the bills are paid.”

The Deputy said: “The Government wants to help these people and others like them, who are unable to cope with their debts. Under the provisions of the Personal Insolvency Bill a number of arrangements will be made available, whereby a portion of personal or mortgage debt may be written off, as part of a repayment plan. Debt Relief Certificates will help out people with smaller debts, of less than €20,000, while Debt Settlement Arrangements can be reached for larger mortgage loans.

“This means that the Bill will help not only those in mortgage arrears, but also those who are utterly overwhelmed by credit card bills, car loans, and overdrafts. The final element of the legislation is the reformed bankruptcy arrangements, which will reduce the period of time that a person will be considered bankrupt from 12 years to three years.”

 

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