The Personal Insolvency Bill was signed into law by the President on 26 December 2012.
The Act provides for:
- Three new non-judicial debt settlement systems:
- Personal Insolvency Arrangements
- Debt Settlement Arrangements
- Debt Relief Notices
- An Insolvency Service to oversee the debt settlement systems and provision for the authorisation of personal insolvency practitioners
- Reforms to the current bankruptcy legislation, including:
- The reduction of the automatic discharge period from 12 years to 3 years, subject to certain conditions
- Increasing to 3 years the review period for certain pre-bankruptcy transactions
The Minister has indicated that the new law will be fully operational by the early part of 2013 and that the new Insolvency Service will issue guidelines in the first quarter of the new year.
View previous articles on the Personal Insolvency Bill here and here and here.
Contributed by Delia McMahon.
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