Worked Examples – Personal Insolvency Scheme

The DF has released an explanatory note here.

4 replies on “Worked Examples – Personal Insolvency Scheme”

They forgot to mention step 1.

Step 1. Do nothing for 12-24 months while we complete the legislation, pass it through the Dail, Seanad and Aras, test it in the courts, and get started on the implementation process.

I’ve read the first example and ain’t going to bother with the rest (even if it’s only a page more!). I would be more interested to see an example where “John” has the ability to make some level of payment.

And this bit: “The Insolvency Service will examine the submitted documentation and if satisfied will issue a Debt Relief Certificate. The Certificate will list the qualifying debts of the debtor on the application date, specify the amount of each debt and the creditor to whom it was owed. The Service then gives a copy of the Certificate to John and records the relevant details on the Insolvency Register.
A 1 year moratorium period during which creditors cannot pursue action against John in respect of the debts covered by the DRC commences on the date of the Certificate’s registration in the Insolvency Register.
At the end of the 1 year moratorium period, John is discharged from the debts listed in the Debt Relief Certificate.”

I don’t get the 1yr moratorium? Creditors can’t pursue during the moratorium and John is discharged of the debts at the end of the moratorium. So what’s it for?

Devil’s advocate: John plans to emigrate. He has a job lined up as a labourer on a site in the UK. Although he could service his debts at this point, why should he? Or John can get a low paying job in Ireland and with effort could pay off his debts over 4 years, but logically he’s better off going for debt relief.

Subtext: move to the UK, if you can afford it. Official Ireland’s cynicism at its best.

I wonder if EI made any contribution on behalf of the entrepreneurs they shepherd?

Or could it be since many of the latte are already in tenured academic positions, bankruptcy doesn’t enter the frame?

The insolvency proposals are ridiculous for anyone whose business is under water. Snail race from Victorian to Edwardian values.

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