Tánaiste says new Personal Insolvency Legislation will strengthen the hand of borrowers in dealing with their banks
Issued : Wednesday 25 January, 2012
Statement by Eamon Gilmore TD
Leader of the Labour Party, Tánaiste and Minister for Foreign Affairs & Trade
The Tánaiste Eamon Gilmore T.D., has welcomed the publication of the Scheme of the Personal Insolvency Bill by the Minister for Justice Alan Shatter and Minister for Finance Michael Noonan.
"This is about giving people a fair deal and a fresh start in dealing with their debts. It will also form a central element in resolving the problem of mortgage arrears as highlighted in the Keane Report on Mortgage Arrears.
"When enacted, this legislation will strengthen the hand of distressed borrowers and mortgage holders in dealing with the banks as they may have the option to settle their debts without going bankrupt and if they do, they could be discharged after a three instead of an onerous 12 year term.
"I would encourage people to talk to their banks about how they should best work through their debts as the emphasis of this legislation is on workable solutions that give people space and a realistic way of managing their debt.
"This will help the Government achieve its objective of keeping distressed mortgage holders in their home during this crisis, in so far as it is practicably possible. This also gives lenders certainty about the Government's direction in that it is in their interest to start reaching voluntary and realistic solutions with borrowers now, rather than face losing their security through a borrower's bankruptcy down the road.
"Alone, this legislation is not the solution to the country's mortgage arrears problems, but it does form a crucial part of it."
