an bille um dhÓcmhainneacht phearsanta, 2012 ......an bille um dhÓcmhainneacht phearsanta, 2012...

————————

AN BILLE UM DHÓCMHAINNEACHT PHEARSANTA, 2012PERSONAL INSOLVENCY BILL 2012

————————

Mar a leasaíodh sa Roghchoiste um Dhlí agus Ceart, Cosaint agusComhionnas

As amended in the Select Committee on Justice, Defence andEquality

————————

ARRANGEMENT OF SECTIONS

PART 1

Preliminary and General

Section1. Short title and commencement.

2. Interpretation.

3. Regulations and orders.

4. Expenses.

5. Appropriate court.

6. Repeals.

PART 2

Insolvency Service

7. Establishment day.

8. Establishment of Insolvency Service.

9. Functions of Insolvency Service.

10. Composition of Insolvency Service.

11. Director.

12. Staff of Insolvency Service.

13. Superannuation.

14. Strategic plans.

15. Business plan.[No. 58a of 2012]

16. Reports by the Insolvency Service.

17. Accounts and audit.

18. Appearance before Committee of Dáil Éireann establishedto examine, etc., appropriation accounts, etc.

19. Appearance before other committees of Houses ofOireachtas.

20. Power to charge and recover fees.

21. Advances by Minister to Insolvency Service.

22. Restriction of Freedom of Information Acts 1997 and 2003.

PART 3

Insolvency Arrangements

Chapter 1

Debt Relief Notices

23. Interpretation of Chapter 1.

24. Eligibility criteria for a Debt Relief Notice.

25. Initiation of Debt Relief Notice process.

26. Application for Debt Relief Notice.

27. Consideration by Insolvency Service of application undersection 26.

28. Referral of application to appropriate court for issue of DebtRelief Notice.

29. Contents of Debt Relief Notice.

30. Duties of Insolvency Service on issue of Debt Relief Notice.

31. Duration of Debt Relief Notice.

32. Effect of issue of Debt Relief Notice.

33. General obligations of debtor arising under this Chapter.

34. Payment by specified debtor of portion of specified debts.

35. Treatment by Insolvency Service of sums received undersection 33 or 34.

36. Power to amend Debt Relief Notice.

37. Investigation by Insolvency Service.

38. Application by Insolvency Service for direction of court.

39. Application by person affected to Court.

40. Creditor objection during supervision period.

2

41. Application by Insolvency Service to have Debt ReliefNotice terminated.

42. Effect of termination of Debt Relief Notice.

43. Discharge from specified qualifying debts.

44. Approved intermediaries.

Chapter 2

Appointment of personal insolvency practitioner for purposes ofChapter 3 or 4

45. General.

46. Appointment of personal insolvency practitioner.

47. Completion of Prescribed Financial Statement.

48. Personal insolvency practitioner to advise debtor.

49. Instruction by debtor to personal insolvency practitioner tomake proposal for arrangement, application for protec-tive certificate.

50. Statement to be prepared by personal insolvency prac-titioner.

Chapter 3

Debt Settlement Arrangements

51. Debt Settlement Arrangement: General Conditions.

52. Debt Settlement Arrangement permitted once only.

53. Debt Settlement Arrangement: Eligibility criteria.

54. Debt Settlement Arrangement: Application for protectivecertificate.

55. Debt Settlement Arrangement: Consideration by InsolvencyService of application for protective certificate.

56. Debt Settlement Arrangement: Referral of application tocourt for issue of protective certificate.

57. Debt Settlement Arrangement: Effect of issue of protectivecertificate.

58. Debt Settlement Arrangement: Right of appeal as respectsprotective certificate.

59. Actions to be taken by personal insolvency practitioner fol-lowing issue of protective certificate.

60. Mandatory requirements concerning Debt SettlementArrangement.

61. Debt Settlement Arrangement: Non-exhaustive list ofmatters for possible inclusion.

62. Preferential debts in Debt Settlement Arrangement.

3

63. Secured creditors and Debt Settlement Arrangement.

64. Principal private residence in Debt Settlement Arrangement.

65. Debt Settlement Arrangement: Calling of creditors’ meeting.

66. Debt Settlement Arrangement: Documents to be given tocreditors and the Insolvency Service when calling acreditors’ meeting.

67. Debt Settlement Arrangement: Conduct of creditors’meeting.

68. Debt Settlement Arrangement: Voting at creditors’ meeting.

69. Debt Settlement Arrangement: Procedures for the conductof creditors’ meetings.

70. Steps to be taken by personal insolvency practitioner follow-ing approval of proposal for Debt SettlementArrangement.

71. Steps to be taken by Insolvency Service following notificationof approval of Debt Settlement Arrangement by per-sonal insolvency practitioner under section 70.

72. Determination of objection lodged under section 70.

73. Coming into effect of Debt Settlement Arrangement.

74. Effect of Debt Settlement Arrangement.

75. Operation of terms of Debt Settlement Arrangement.

76. General duties and obligations of debtor arising under Chap-ter 3.

77. Variation of a Debt Settlement Arrangement.

78. Termination of Debt Settlement Arrangement by meetingof creditors.

79. Application to appropriate court to have Debt SettlementArrangement terminated.

80. Debt Settlement Arrangement deemed to have failed after 6month arrears default.

81. Effect of premature termination of Debt SettlementArrangement on debts.

82. Deemed act of bankruptcy on termination of Debt Settle-ment Arrangement.

83. Successful completion of Debt Settlement Arrangement.

84. Grounds of challenge by creditor to Debt SettlementArrangement.

Chapter 4

Personal Insolvency Arrangements

85. Review of operation of Chapter 4.

4

86. Personal Insolvency Arrangement: General Conditions.

87. Personal Insolvency Arrangement permitted once only.

88. Eligibility criteria for a Personal Insolvency Arrangement.

89. Application for protective certificate.

90. Consideration by Insolvency Service of application for pro-tective certificate.

91. Referral of application to appropriate court for issue of pro-tective certificate.

92. Effect of issue of protective certificate.

93. Right of appeal as respects protective certificate.

94. Actions to be taken by personal insolvency practitioner fol-lowing issue of protective certificate.

95. Mandatory requirements concerning Personal InsolvencyArrangement.

96. Non-exhaustive list of options as respects payments forinclusion in Personal Insolvency Arrangement.

97. Preferential debts in Personal Insolvency Arrangement.

98. Secured creditors and Personal Insolvency Arrangement.

99. Protections for secured creditors in Personal InsolvencyArrangement.

100. Principal private residence in Personal InsolvencyArrangement.

101. Valuation of security.

102. Calling of creditors’ meeting.

103. Documents to be given to creditors and the InsolvencyService when summoning a creditors’ meeting.

104. Voting rights at creditors’ meetings.

105. Conduct of creditors’ meeting for consideration of proposedPersonal Insolvency Arrangement.

106. Proportion of creditors required to approve Personal Insol-vency Arrangement.

107. Procedures for the conduct of creditors meetings.

108. Steps to be taken by personal insolvency practitioner follow-ing approval of proposal for Personal InsolvencyArrangement.

109. Steps to be taken by Insolvency Service following notificationof approval of Personal Insolvency Arrangement bypersonal insolvency practitioner under section 108.

110. Determination of objection lodged under section 108.

5

111. Coming into effect of Personal Insolvency Arrangement.

112. Effect of Personal Insolvency Arrangement.

113. Operation of terms of Personal Insolvency Arrangement.

114. General duties and obligations of debtor arising under Chap-ter 4.

115. Variation of a Personal Insolvency Arrangement.

116. Grounds of challenge by creditor to coming into effect orvariation of Personal Insolvency Arrangement.

117. Application to appropriate court to have Personal InsolvencyArrangement terminated.

118. Personal Insolvency Arrangement deemed to have failedafter 6 month arrears default.

119. Effect of premature termination of Personal InsolvencyArrangement on debts.

120. Successful completion of Personal Insolvency Arrangement.

Chapter 5

Offences under Part 3

121. False representations and omissions.

122. Breach of obligation under section 33.

123. Concealment or falsification of documents.

124. Fraudulent disposal of property.

125. Obtaining credit or engaging in business by a debtor whileinsolvency arrangement is in effect.

126. Unauthorised person acting as authorised intermediary, per-sonal insolvency practitioner.

127. Prosecution of offences.

Chapter 6

Miscellaneous

128. Register of Insolvency Arrangements.

129. Giving of notices.

130. Set-off to be applied.

131. Prescribed Financial Statement.

132. Guidelines and codes of practice.

133. Application of laws in relation to netting agreements, etc.

6

PART 4

Bankruptcy

134. Amendment of section 3 of Bankruptcy Act 1988.













PART 5

Regulation of Personal Insolvency Practitioners

147. Regulation of personal insolvency practitioners.

SCHEDULE

Repeals

7

Acts Referred to

Asset Covered Securities Act 2001 2001, No. 47

Bankruptcy Act 1988 1988, No. 27

Civil Partnership and Certain Rights and Obligations ofCohabitants Act 2010 2010, No. 24

Comptroller and Auditor General (Amendment) Act 1993 1993, No. 8

Consumer Credit Act 1995 1995, No. 24

Corporation Tax Act 1976 1976, No. 7

Data Protection Acts 1998 and 2003

Deeds of Arrangement Act 1887 50 & 51 Vict. c. 57

Family Home Protection Act 1976 1976, No. 27

Family Law (Maintenance of Spouses and Children) Act1976 1976, No. 11

Freedom of Information Acts 1997 and 2003

Local Government (Charges) Act 2009 2009, No. 30

Local Government (Household Charge) Act 2011 2011, No. 36

Local Government Act 2001 2001, No. 37

Multi-Unit Developments Act 2011 2011, No. 2

Netting of Financial Contracts Act 1995 1995, No. 25

Nursing Homes Support Scheme Act 2009 2009, No. 15

Proceeds of Crime Acts 1996 and 2005

Property Services (Regulation) Act 2011 2011, No. 40

Public Service Management (Recruitment andAppointments) Act 2004 2004, No. 33

Statute of Limitations 1957 1957, No. 6

Statutory Declarations Act 1938 1938, No. 37

8

————————

AN BILLE UM DHÓCMHAINNEACHT PHEARSANTA, 2012PERSONAL INSOLVENCY BILL 2012

————————

BILLentitled

AN ACT TO AMEND THE LAW RELATING TO INSOL-5VENCY, TO AMEND THE BANKRUPTCY ACT 1988, TOPROVIDE FOR THE ESTABLISHMENT AND FUNC-TIONS OF A BODY TO BE KNOWN AS SEIRBHÍSDÓCMHAINNEACHTA NA hÉIREANN OR, IN THEENGLISH LANGUAGE, THE INSOLVENCY SERVICE OF10IRELAND, AND, IN PARTICULAR, IN THE INTERESTSOF THE COMMON GOOD (INCLUDING THE STABILITYOF THE FINANCIAL SYSTEM IN THE STATE)AND HAVING REGARD TO THE FOLLOWINGOBJECTIVES—15

(a) THE NEED TO AMELIORATE THE DIFFICULTIESEXPERIENCED BY DEBTORS IN DISCHARGINGTHEIR INDEBTEDNESS DUE TO INSOLVENCYAND THEREBY LESSEN THE ADVERSE CON-SEQUENCES FOR ECONOMIC ACTIVITY IN THE20STATE,

(b) THE NEED TO ENABLE CREDITORS TORECOVER DEBTS DUE TO THEM BY INSOLVENTDEBTORS TO THE EXTENT THAT THE MEANSOF THOSE DEBTORS REASONABLY PERMITS, IN25AN ORDERLY AND RATIONAL MANNER, AND

(c) THE NEED TO ENABLE INSOLVENT DEBTORSTO RESOLVE THEIR INDEBTEDNESS(INCLUDING BY DETERMINING THAT DEBTSSTAND DISCHARGED IN CERTAIN30CIRCUMSTANCES) IN AN ORDERLY ANDRATIONAL MANNER WITHOUT RECOURSE TOBANKRUPTCY, AND TO THEREBY FACILITATETHE ACTIVE PARTICIPATION OF SUCH PER-SONS IN ECONOMIC ACTIVITY IN THE STATE,35

TO PROVIDE FOR ADDITIONAL MECHANISMS ANDARRANGEMENTS RELATING TO INSOLVENCY TOFACILITATE THE ACHIEVEMENT OF THOSE OBJEC-TIVES, AND TO PROVIDE FOR CONNECTEDMATTERS.40

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

9

Short title andcommencement.

Interpretation.

PART 1

Preliminary and General

1.—(1) This Act may be cited as the Personal Insolvency Act2012.

(2) This Act shall come into operation on such day or days as may 5be fixed by order or orders made by the Minister, either generallyor by reference to any particular purpose or provision, and differentdays may be so fixed for different purposes and different provisions.

2.—(1) In this Act—

“appropriate court” shall be construed in accordance with section 5; 10

“bankruptcy payment order” means an order made pursuant tosection 85D of the Bankruptcy Act 1988;

“civil partner”, in relation to a person, means a civil partner withinthe meaning of the Civil Partnership and Certain Rights and Obli-gations of Cohabitants Act 2010 but does not include a civil partner 15who is living separately and apart from the person;

“connected person”, in relation to a person, shall be construed inaccordance with subsection (2);

“creditor”, in relation to a debt, means a natural or legal person towhom a debtor owes that debt or to whom the debtor otherwise has 20a liability in respect of that debt;

“debtor”, in relation to a debt, means a natural person who—

(a) owes a debt to a creditor, or

(b) otherwise has a liability to a creditor;

“Debt Settlement Arrangement” means— 25

(a) an arrangement entered into by a debtor, or

(b) an arrangement for which a proposal is made,

under Chapter 3 of Part 3;

“domestic support order” means—

(a) an order which is an antecedent order for the purposes of 30the Family Law (Maintenance of Spouses and Children)Act 1976,

(b) an order which by virtue of any statutory provision isenforceable in the State as if it were an antecedent orderunder the Family Law (Maintenance of Spouses and 35Children) Act 1976,

(c) an order which is an antecedent order within the meaningof section 43 of the Civil Partnership and Certain Rightsand Obligations of Cohabitants Act 2010, and

10

(d) an order which is an antecedent order for the purposes ofsections 176 to 186 of the Civil Partnership and CertainRights and Obligations of Cohabitants Act 2010;

“establishment day” means the day appointed under section 7;

“Insolvency Service” means the Insolvency Service of Ireland estab-5lished by section 8;

“insolvent”, in relation to a debtor, shall be construed as meaningthat the debtor is unable to pay his or her debts in full as they falldue;

“Minister” means the Minister for Justice and Equality;10

“personal data” has the meaning it has in the Data Protection Acts1988 and 2003;

“Personal Insolvency Arrangement” means—

(a) an arrangement entered into by a debtor, or

(b) an arrangement for which a proposal is made,15

under Chapter 4 of Part 3;

“personal insolvency practitioner” means a person authorised underPart 5 to act as a personal insolvency practitioner;

“prescribed” means prescribed by regulations under section 3;

“principal private residence” means a dwelling in which the debtor20ordinarily resides and includes—

(a) any building or structure, or

(b) any vehicle or vessel (whether mobile or not),

together with any garden or portion of ground attached to and occu-pied with the dwelling or otherwise required for the amenity or con-25venience of the dwelling;

“protective certificate” means a certificate issued by the appropriatecourt pursuant to Chapter 3 or Chapter 4 of Part 3;

“relative”, in relation to a person, means a brother, sister, parent,spouse or civil partner of the person or a child of the person or of30the spouse or civil partner;

“secured creditor”, in relation to a debt, means a creditor of thedebtor who holds, in respect of his or her debt, security in or overproperty of the debtor;

“secured debt” means a debt the payment for which is secured by35security in or over any asset or property of any kind;

“security” means, in relation to a debt, any means of securing pay-ment of the debt and includes—

(a) a mortgage, judgment mortgage, charge, lien, pledge,hypothecation or other security interest or encumbrance40or collateral in or over any property (whether real or per-sonal and including choses-in-action),

11

(b) an assignment by way of security, and

(c) an undertaking or agreement by any person (including asolicitor) to give or create a security interest in property;

“solvent” with respect to a debtor, means that the debtor is notinsolvent; 5

“specified debt”, in relation to a protective certificate, means a debtthat is specified in that protective certificate as being subject to thatcertificate;

“specified creditor”, in relation to a protective certificate, means aperson specified in a protective certificate as being the person to 10whom a particular debt is owed;

“spouse”, in relation to a person, does not include a spouse who isliving separately and apart from the person;

“unsecured creditor”, in relation to a debt, means any creditor whois not a secured creditor; 15

“unsecured debt” means a debt in respect of which payment is notsecured by security.

(2) (a) Any question whether a person is connected with anothershall be determined in accordance with the following pro-visions of this paragraph (any provision that one person 20is connected with another person being taken to meanalso that that other person is connected with the first-mentioned person):

(i) a person is connected with an individual if that personis a relative of the individual; 25

(ii) a person, in his or her capacity as a trustee of a trust,is connected with an individual who or any of whosechildren or as respects whom any body corporatewhich he or she controls is a beneficiary of the trust;

(iii) a person is connected with any person with whom he 30or she is in partnership;

(iv) a company is connected with another person if thatperson has control of it or if that person and personsconnected with that person together have control ofit; 35

(v) any two or more persons acting together to secureor exercise control of a company shall be treated inrelation to that company as connected with oneanother and with any person acting on the directionsof any of them to secure or exercise control of the 40company.

(b) In paragraph (a) “control” has the meaning assigned to itby section 157 of the Corporation Tax Act 1976, and anycognate words shall be construed accordingly.

(3) In this Act a reference to an asset includes an interest in an 45asset and a reference to a liability includes an interest in a liability.

12

3.—(1) The Minister or, as the case may be, the InsolvencyService, may make regulations prescribing any matter or thing whichis referred to in this Act as prescribed or to be prescribed.

(2) A regulation under this Act may contain such incidental, sup-plementary and consequential provisions as the Minister or, as the5case may be, the Insolvency Service, considers necessary or expedi-ent for the purposes of the regulations.

(3) Every regulation and order (other than an order referred toin section 1(2)) made under this Act shall be laid before each Houseof the Oireachtas as soon as may be after it is made and, if a resol-10ution annulling the order or regulation is passed by either suchHouse within the next 21 days on which that House has sat after theorder or regulation is laid before it, the order or regulation shall beannulled accordingly but without prejudice to the validity of anythingpreviously done thereunder.15

4.—The expenses incurred by the Minister in the administrationof this Act shall, to such extent as may be sanctioned by the Ministerfor Public Expenditure and Reform, be paid out of moneys providedby the Oireachtas.

5.—(1) In this Act “appropriate court” means—20

(a) where the application is made under Chapter 3 or 4 of Part3, and the total liabilities of a debtor determined on thebasis of the Prescribed Financial Statement completed bythe debtor concerned in respect of the application con-cerned are in excess of €2,500,000, the High Court, and25

(b) in any other case, the Circuit Court.

(2) The exercise of the powers conferred by this Act on the Cir-cuit Court shall be within the jurisdiction of the circuit of the CircuitCourt in which—

(a) the debtor to whom the application relates is residing at30the time of the making of the application or has residedwithin one year of the time of the making of the appli-cation, or

(b) the debtor to whom the application relates has a place ofbusiness at the time of the making of the application or35has had a place of business within one year of the timeof the making of the application.

(3) An application to the Circuit Court under this Act may bemade in any county of the circuit concerned and may be transferredwithin such circuit from one county to another county.40

6.—The enactments specified in the Schedule are repealed.

13

Regulations andorders.

Expenses.

Appropriate court.

Repeals.

Establishment day.

Establishment ofInsolvency Service.

Functions ofInsolvency Service.

PART 2

Insolvency Service

7.—The Minister shall, by order, appoint a day to be the establish-ment day for the purposes of this Act.

8.—(1) On the establishment day there shall stand established a 5body to be known, in the English language, as the Insolvency Serviceof Ireland or, in the Irish language, as Seirbhís Dócmhainneachtana hÉireann to perform the functions conferred on it by or underthis Act.

(2) The Insolvency Service shall be a body corporate with per- 10petual succession and with power to—

(a) sue and be sued in its corporate name,

(b) with the approval of the Minister, given with the consentof the Minister for Public Expenditure and Reform,acquire, hold and dispose of land or an interest in or 15rights over or in respect of land, and

(c) acquire, hold and dispose of any other property.

(3) The Insolvency Service shall—

(a) subject to this Act, be independent in the exercise of itsfunctions under this Act, and 20

(b) have all powers that are necessary or expedient for, orincidental to, the performance of those functions.

(4) The seal of the Insolvency Service may be authenticated by—

(a) the signature of the Director, and

(b) the signature of a member of the staff of the Insolvency 25Service authorised by the Director to act in that behalf.

(5) Judicial notice shall be taken of the seal of the InsolvencyService and, accordingly, every document—

(a) purporting to be a document made by the InsolvencyService, and 30

(b) purporting to be sealed with the seal of the InsolvencyService authenticated in accordance with subsection (4),

shall be received in evidence and be deemed to be such documentwithout further proof unless the contrary is proved.

(6) Any contract or instrument which, if entered into or executed 35by an individual, would not require to be under seal may be enteredinto or executed on behalf of the Insolvency Service by any persongenerally or specially authorised by the Insolvency Service in thatbehalf.

9.—(1) Subject to this Act, the principal functions of the Insol- 40vency Service shall be to—

14

(a) monitor the operation of the arrangements relating to per-sonal insolvency provided for in this Act,

(b) consider applications for Debt Relief Notices in accord-ance with Chapter 1 of Part 3,

(c) process applications for protective certificates in accord-5ance with Chapter 3 or 4 of Part 3,

(d) maintain the Registers established under section 128,

(e) provide information to the public on the working of thisAct,

(f) advise the Minister on any matter relating to its functions,10

(g) authorise persons to perform the functions of an approvedintermediary under Chapter 1 of Part 3,

(h) contribute to the development of policy in the area of per-sonal insolvency, and

(i) carry out any other duties and exercise any other powers15assigned to it by or under this Act.

(2) The Insolvency Service may disseminate, to such extent andin such manner as it considers appropriate, information relating tothe services it provides under this Act.

(3) The Insolvency Service may, subject to this Act, do anything20which it considers necessary or expedient to enable it to performits functions.

(4) Any function of the Insolvency Service may, without prejudiceto its general responsibilities under this Act, be performed throughor by the Director or any member of its staff duly authorised in that25behalf by the Director.

(5) The Director or a member of staff of the Insolvency Servicewho performs any of its functions is presumed in any proceedings tohave been authorised by it to do so on its behalf, unless the contraryis shown.30

10.—The Insolvency Service shall consist of—

(a) the Director of the Insolvency Service appointed undersection 11, and

(b) such members of staff of the Insolvency Service appointedunder this Part.35

11.—(1) (a) There shall be a Director of the Insolvency Service whoshall be known, and is referred to in this Act, as the“Director”.

(b) The Director shall hold office for such period, notexceeding 5 years from the date of his or her appointment40under this section, as may be determined by the Minister.

15

Composition ofInsolvency Service.

Director.

(c) A person who has held office as Director shall be eligiblefor re-appointment but shall not hold office for periodsthe aggregate of which exceeds 10 years.

(2) Subject to subsections (12) and (13), the Director shall—

(a) be appointed by the Minister on the recommendation of 5the Director of the Public Appointments Service after acompetition for that purpose under section 47 of thePublic Service Management (Recruitment andAppointments) Act 2004 has been held on behalf of theMinister, and 10

(b) have the appropriate experience, qualifications, trainingand expertise for the appointment.

(3) The Director shall—

(a) implement the policies and decisions of the InsolvencyService, 15

(b) manage and control generally the Insolvency Service’sstaff, administration and business,

(c) be responsible to the Minister for the performance of hisor her functions, and

(d) perform such other functions (if any) as may be required 20by the Minister or as may be authorised under this Act.

(4) The Director may be removed or suspended from office bythe Minister for stated reasons.

(5) The Director shall provide the Minister with such information,including financial information, in respect of the performance of the 25Director’s functions as the Minister may require.

(6) The Director shall not hold any other office or position inrespect of which remuneration is payable, or carry on any business,trade or profession without the approval of the Minister.

(7) Such of the functions of the Director as the Director may spec- 30ify may, with the consent of the Minister, be performed by suchmember or members of the staff of the Insolvency Service as theDirector may authorise for that purpose, and that member or thosemembers of staff shall be accountable to the Director for the per-formance of the functions so delegated. 35

(8) The Director shall be accountable to the Minister for the per-formance of functions delegated by him or her in accordance withsubsection (7).

(9) The Director may, with the consent of the Minister in writing,revoke a delegation made in accordance with this section. 40

(10) The functions referred to in subsection (7) do not include afunction delegated by the Minister to the Director subject to a con-dition that the function shall not be delegated by the Director toanyone else.

(11) If the Director— 45

16

(a) dies, resigns, becomes disqualified for or is removed fromoffice, or

(b) is for any reason temporarily unable to continue to per-form his or her functions,

the Minister may, designate such member or members of the staff of5the Insolvency Service as he or she considers appropriate to performthe functions of the Director until—

(i) in the circumstances mentioned in paragraph (a), anappointment is made in accordance with subsection (2),

(ii) in the circumstances mentioned in paragraph (b), the10Director is able to resume the performance of his or herfunctions, or

(iii) the Minister decides to revoke or alter a designation madeunder this subsection.

(12) The Minister may, before the establishment day, designate a15person to be appointed Director.

(13) If, immediately before the establishment day, a person standsdesignated by the Minister under subsection (12), the Minister shallappoint that person to be the first Director.

12.—(1) The Minister may, after consultation with the Insolvency20Service, appoint such number of persons to be members of the staffof the Insolvency Service as may be approved by the Minister forPublic Expenditure and Reform.

(2) The Minister shall, after consultation with the InsolvencyService and with the consent of the Minister for Public Expenditure25and Reform, determine the grades of the staff of the InsolvencyService and the numbers of staff in each grade.

(3) Each appointment under this section shall be—

(a) on such terms and conditions relating to remuneration asthe Minister may, with the consent of the Minister for30Public Expenditure and Reform, determine, or

(b) on such other terms and conditions as may be determinedby the Insolvency Service and approved by the Ministerwith the consent of the Minister for Public Expenditureand Reform.35

13.—(1) The Insolvency Service shall, as soon as may be after theestablishment day, with the approval of the Minister and the consentof the Minister for Public Expenditure and Reform, make a schemeor schemes for the granting of superannuation benefits to or inrespect of the Director and such of its staff as it thinks fit.40

(2) A scheme under this section shall fix the time and conditionsof retirement of all persons to or in respect of whom superannuationbenefits are payable under the scheme or schemes and differenttimes and conditions may be fixed in respect of different classes ofpersons.45

17

Staff of InsolvencyService.

Superannuation.

Strategic plans.

(3) The Insolvency Service may, with the approval of the Ministerand the consent of the Minister for Public Expenditure and Reform,make a scheme amending a scheme under this section including ascheme under this subsection.

(4) A scheme under this section shall, if approved by the Minister 5with the consent of the Minister for Public Expenditure and Reform,be carried out by the Insolvency Service in accordance with its terms.

(5) A scheme under this section shall include a provision forappeals from a decision relating to a superannuation benefit underthe scheme. 10

(6) If any dispute arises as to the claim of any person to, or theamount of, any superannuation benefit payable pursuant to a schemeor schemes under this section, such dispute shall be submitted to theMinister who shall refer it to the Minister for Public Expenditureand Reform, whose decision shall be final. 15

(7) No superannuation benefits shall be granted by the InsolvencyService to or in respect of a person on ceasing to be the Director ora member of the staff of the Insolvency Service otherwise than—

(a) in accordance with a scheme or schemes under thissection, or 20

(b) with the approval of the Minister and the consent of theMinister for Public Expenditure and Reform.

(8) A scheme under this section shall be laid before each Houseof the Oireachtas as soon as may be after it is made and, if a resol-ution annulling the scheme is passed by either such House within the 25next 21 days on which that House has sat after the scheme is laidbefore it, the scheme shall be annulled accordingly, but withoutprejudice to the validity of anything previously done thereunder.

(9) Subsection (8) shall, with all necessary modifications, apply toan amendment to a scheme under this section as it applies to a 30scheme under this section.

(10) In this section—

“amending”, in relation to a scheme under this section, includesrevoking the scheme;

“superannuation benefit” means any pension, gratuity or other 35allowance payable to or in respect of a person ceasing to be theDirector or a member of the staff of the Insolvency Service.

14.—(1) The Insolvency Service shall, as soon as practicable afterthe establishment day and, in any case, within 6 months after thatday, and thereafter within 6 months before each third anniversary of 40the establishment day, prepare and submit to the Minister, forapproval by the Minister with or without amendment, a strategicplan for the Insolvency Service for the ensuing 3 year period.

(2) A strategic plan shall—

(a) comply with any directions issued from time to time by 45the Minister in respect of the form and manner of theplan’s preparation,

18

(b) set out the key objectives, outputs and related strategiesof the Insolvency Service, including the use ofresources, and

(c) have regard to the need to ensure the most beneficial,effective and efficient use of the Insolvency Service’s5resources.

(3) The Minister shall, as soon as practicable after the strategicplan has been so approved, cause a copy of the strategic plan to belaid before each House of the Oireachtas.

15.—(1) Subject to subsections (2) to (5), the Insolvency Service10shall, in each year—

(a) prepare and adopt a business plan in respect of that yearor of such other period as may be determined by theMinister, and

(b) submit the plan to the Minister.15

(2) A business plan shall—

(a) be prepared in the form and manner and in accordancewith any directions given by the Minister (including anytimescale in which the plan must be submitted to theMinister),20

(b) indicate the activities of the Insolvency Service for theperiod to which the business plan relates,

(c) contain estimates of the number of employees of the Insol-vency Service for the period and the business to whichthe plan relates,25

(d) contain any other information specified by the Minister,and

(e) accord with policies and objectives of the Minister and theGovernment as they relate to the functions of the Insol-vency Service.30

(3) In preparing the business plan, the Insolvency Service shallhave regard to the Strategic Plan in operation at that time approvedunder section 14.

(4) The Minister may, within 30 days of the submission to him orher of a business plan, direct the Insolvency Service to amend that35business plan if, in the Minister’s opinion, the plan—

(a) does not contain any information required under subsec-tion (2),

(b) does not comply in any other respect with subsection (2),or40

(c) has been prepared without regard to the matter specifiedin subsection (3).

(5) The Insolvency Service shall comply with a direction given toit under subsection (4) within the period, if any, specified in the direc-tion, being a period reasonable in the circumstances.45

19

Business plan.

Reports by theInsolvency Service.

(6) The Insolvency Service shall submit to the Minister with abusiness plan a statement of its estimate of the income and expendi-ture relating to the plan that is consistent with the moneys estimatedto be available to the Insolvency Service for the period to which thebusiness plan relates. 5

(7) Subject to subsection (4), the Minister shall ensure that copiesof a business plan submitted to the Minister are laid before eachHouse of the Oireachtas within 21 days after the plan is so submitted.

(8) The Insolvency Service shall ensure that, as soon as is practi-cable after copies of a business plan are laid before the Houses of 10the Oireachtas, the plan is published in accordance with sucharrangements as the Minister may specify.

(9) The Insolvency Service may amend an adopted business planand, in any such case—

(a) subsections (2) to (8) shall, with all necessary modifi- 15cations, apply to the preparation of the amended plan asthey apply to a business plan prepared under subsection(1), and

(b) the Insolvency Service shall adopt the amended plan andsubmit it to the Minister not later than 3 weeks after the 20date on which it adopted the amended plan.

16.—(1) Not later than 4 months after the end of each financialyear, the Insolvency Service shall make a written report (in thissection referred to as the “annual report”) to the Minister on theperformance of the functions of the Insolvency Service during that 25year.

(2) The annual report submitted under subsection (1) shall be insuch form and shall include information in respect of such mattersas the Insolvency Service thinks appropriate or as the Minister maydirect. 30

(3) The Insolvency Service—

(a) may make any other reports that it considers appropriatefor drawing to the Minister’s attention matters relating tothe functions of the Insolvency Service that have come toits notice and that, in its opinion, should, because of their 35gravity or other exceptional circumstances, be the subjectof a special report to the Minister, and

(b) shall make a report on any matter if so requested by theMinister.

(4) The Insolvency Service shall give to the Minister such other 40information as the Minister may require in respect of—

(a) the performance by the Insolvency Service of its functionsand its policies in respect of such performance,

(b) any specific document or account prepared by it, or

(c) the annual report or any report referred to in subsection 45(3).

20

(5) For the purposes of subsection (1), the period between theestablishment day and the following 31 December shall be deemedto be a financial year.

(6) Not later than 2 months after receiving a report under thissection, the Minister shall cause a copy of the report to be laid before5each House of the Oireachtas.

(7) The Insolvency Service shall publish its annual report in suchform and manner as it considers appropriate as soon as practicableafter subsection (6) has been complied with in respect of the report.

17.—(1) The Insolvency Service shall—10

(a) submit estimates of income and expenditure to the Mini-ster in such form, in respect of such periods and at suchtimes as may be specified by the Minister, and

(b) provide to the Minister any information which the Mini-ster may require regarding those estimates and also15regarding the proposals and plans of the InsolvencyService in respect of a period specified by the Minister.

(2) The Insolvency Service shall keep in such form and in respectof such accounting periods as may be approved of by the Minister,with the consent of the Minister for Public Expenditure and Reform,20all proper and usual accounts of moneys received and spent by theInsolvency Service, including an income and expenditure accountand a balance sheet.

(3) (a) The accounts of the Insolvency Service shall be approvedby it as soon as practicable (but not later than 3 months25after the end of the accounting period to which theyrelate) and submitted by it to the Comptroller and Audi-tor General for audit.

(b) A copy of the accounts and the report of the Comptrollerand Auditor General on them shall be presented to the30Minister as soon as practicable, and the Minister shallcause a copy of the accounts and report to be laid beforeeach House of the Oireachtas.

(4) (a) The Insolvency Service, the Director and any relevantmember of the staff shall, whenever so required by the35Minister, permit any person appointed by the Minister toexamine the accounts of the Insolvency Service in respectof any financial year or other period and shall facilitateany such examination, and the Insolvency Service shallpay to the Minister such fee for the examination as may40be fixed by the Minister.

(b) In this subsection, “relevant member of the staff” meansa member of the staff of the Insolvency Service to whomduties relating to those accounts have been duly assigned.

18.—(1) The Director shall, whenever required in writing by a45Committee of Dáil Éireann established under the Standing Ordersof Dáil Éireann to examine and report to Dáil Éireann on the appro-priation accounts and reports of the Comptroller and AuditorGeneral, give evidence to that Committee on—

21

Accounts and audit.

Appearance beforeCommittee of DáilÉireann establishedto examine, etc.,appropriationaccounts, etc.

Appearance beforeother committees ofHouses ofOireachtas.

(a) the regularity and propriety of the transactions recorded,or required to be recorded in any book or other record ofaccount subject to audit by the Comptroller and AuditorGeneral that the Insolvency Service is required by thisAct to prepare, 5

(b) the economy and efficiency of the Insolvency Service inthe use of resources,

(c) the systems, procedures and practices employed by theInsolvency Service for the purpose of evaluating theeffectiveness of its operations, and 10

(d) any matter affecting the Insolvency Service referred to ina special report of the Comptroller and Auditor Generalunder section 11(2) of the Comptroller and AuditorGeneral (Amendment) Act 1993, or any other report ofthe Comptroller and Auditor General (in so far as the 15report relates to a matter specified in paragraph (a), (b)or (c)) that is laid before Dáil Éireann.

(2) In giving evidence to the Committee under this section, theDirector shall not question or express an opinion on the merits ofany policy of the Government or a Minister of the Government or 20on the merits of the objectives of such policy.

19.—(1) The Director shall, at the request in writing of the Com-mittee, attend before it to give account for the general administrationof the Insolvency Service as is required by the Committee and shallprovide the Committee with such information (including documents) 25as it specifies and as is in the possession of, or is available to, theDirector.

(2) The Director is not required to give an account before a Com-mittee of any matter that is or has been or may at a future time bethe subject of— 30

(a) a decision or determination by the Insolvency Service inrespect of a particular person, or

(b) proceedings before a court or tribunal in the State.

(3) The Director shall, if of the opinion that subsection (2) appliesto a matter about which he or she is requested to give an account 35before a Committee, inform the Committee of that opinion and thereasons for the opinion.

(4) The information required under subsection (3) to be given tothe Committee shall be given in writing unless it is given when theDirector is before the Committee. 40

(5) If, on being informed of the Director’s opinion about a matter,the Committee decides not to withdraw its request, the High Courtmay, on application under subsection (6), determine whether subsec-tion (2) applies to the matter.

(6) An application for a determination under subsection (5) may 45be made in a summary manner to the High Court by—

(a) the Director not later than 21 days after being informedby the Committee of its decision not to withdraw itsrequest, or

22

(b) the chairperson of the Committee acting on its behalf.

(7) Pending the determination of an application under subsection(6), the Director shall not attend before the Committee to give anaccount of the matter to which the application relates.

(8) If the High Court determines that subsection (2) applies to the5matter, the Committee shall withdraw its request relating to thematter, but if the High Court determines that subsection (2) does notapply, the Director shall attend before the Committee to give anaccount of the matter.

(9) In this section, “Committee” means a committee appointed10by either House of the Oireachtas or jointly by both Houses of theOireachtas (other than the Committee referred to in section 18(1),the Committee on Members’ Interests of Dáil Éireann or the Com-mittee on Members’ Interests of Seanad Éireann), or a subcommitteeof such a committee.15

20.—(1) Subject to subsection (5), the Insolvency Service, with theconsent of the Minister, may, and if directed by the Minister to doso and in accordance with the terms of the direction, shall, prescribeby regulations the fees to be paid to it and when they fall due inrespect of—20

(a) the performance of functions,

(b) the provision of services, and

(c) the carrying on of activities,

by it under this Act.

(2) Without prejudice to the generality of subsection (1), the25Insolvency Service’s power under that subsection to prescribe feesincludes the power to provide for exemptions from the payment offees, or waiving, remitting or refunding fees (in whole or in part), indifferent circumstances or classes of circumstances or in differentcases or classes of cases.30

(3) Fees received under this Act shall be paid into or disposed offor the benefit of the Exchequer in such manner as the Minister forPublic Expenditure and Reform directs.

(4) The Insolvency Service may recover as a simple contract debtin any court of competent jurisdiction, from a person by whom the35fee is payable, any amount due and owing to the Insolvency Servicein respect of a fee charged under this section.

(5) In making regulations pursuant to this section the InsolvencyService may have regard to—

(a) the expenses incurred by it, or40

(b) the expenses which it is anticipated will be incurred by it,

in performing its functions under this Act, so that so much of thoseexpenses as it considers appropriate are recovered from fees to becharged pursuant to such regulations.

23

Power to chargeand recover fees.

Advances byMinister toInsolvency Service.

Restriction ofFreedom ofInformation Acts1997 and 2003.

Interpretation ofChapter 1.

21.—The Minister shall advance to the Insolvency Service out ofmoneys provided by the Oireachtas such amount or amounts as theMinister may, with the consent of the Minister for Public Expendi-ture and Reform, determine for the purposes of expenditure by theInsolvency Service in the performance of its functions. 5

22.—(1) The Freedom of Information Acts 1997 and 2003 do notapply to a record held by the Insolvency Service, unless the recordrelates to the general administration of the Insolvency Service.

(2) In this section, “record” has the same meaning as in the Free-dom of Information Acts 1997 and 2003. 10

PART 3

Insolvency Arrangements

Chapter 1

Debt Relief Notices

23.—In this Chapter— 15

“Act of 1995” means the Consumer Credit Act 1995;

“application date” means the date on which an application undersection 26 for a Debt Relief Notice is made to the Insolvency Service;

“approved intermediary” means a person authorised under section44 to perform the functions of an approved intermediary under this 20Chapter;

“debt” means a debt for a liquidated sum payable either immediatelyor at some certain future time;

“Debt Relief Notice” means a Debt Relief Notice issued undersection 28; 25

“Debt Relief Notice process” in relation to a debtor, means the pro-cess that commences with the submission of a written statement bythe debtor under section 25(1) and which concludes when the DebtRelief Notice issued in relation to that debtor ceases to have effectin accordance with this Chapter; 30

“excluded debt”, in relation to a debtor, means:

(a) any liability arising out of a domestic support order,

(b) any liability arising out of any tax, duty, levy or othercharge owed or payable to the State,

(c) any amount payable by the debtor under the Local 35Government (Charges) Act 2009,

(d) any amount payable by the debtor under the LocalGovernment (Household Charge) Act 2011,

(e) rates due to the local authority (within the meaning of theLocal Government Act 2001), 40

24

(f) any debt or liability in respect of moneys advanced to thedebtor by the Health Service Executive under the Nurs-ing Homes Support Scheme Act 2009,

(g) any debt due by the debtor to any owners’ managementcompany in respect of annual service charges under5section 18 of the Multi-Unit Developments Act 2011 orcontributions due under section 19 of that Act,

(h) any liability arising out of damages awarded by a court(or another competent authority) in respect of personalinjuries or wrongful death arising from the tort of the10debtor,

(i) any debt or liability arising from a loan (or forbearance ofa loan) obtained through fraud, misappropriation,embezzlement or fraudulent breach of trust;

“hire-purchase agreement” has the meaning given to it under the15Act of 1995;

“qualifying debt” in relation to a debtor, means a debt other than anexcluded debt and—

(a) includes the following:

(i) credit card debt;20

(ii) an overdraft or an unsecured loan from a bank orother entity regulated by the Central Bank of Irelandwhich carries on business in the State and is regu-lated by the Central Bank of Ireland;

(iii) debt for payment of one or more than one bill in25respect of rent, utilities or telephone;

(iv) liquidated debts incurred by the debtor as surety foranother person, such as a guarantee given by thedebtor that has been called up that any amountguaranteed is due and payable by the debtor;30

and

(b) subject to section 43, may include a secured debt;

“specified creditor” shall be construed in accordance with section29(c)(ii) and references to a specified creditor include a reference toany person to whom the right to claim the whole or any part of a35specified qualifying debt concerned passes, by assignment or oper-ation of law, after the application date concerned;

“specified debtor” means a person who is or has been the subject ofa Debt Relief Notice and, in relation to a particular Debt ReliefNotice, means the person who is the subject of that Notice in accord-40ance with section 29(a);

“specified qualifying debts” shall be construed in accordance withsection 29(b);

“supervision period” shall be construed in accordance with section31 and includes a supervision period as extended under that section;45

“termination”, in relation to a Debt Relief Notice, means its termin-ation by order of a court under section 40 or 41.

25

Eligibility criteriafor a Debt ReliefNotice.

24.—(1) Subject to the provisions of this Chapter, a debtor shallnot be eligible for the issue of a Debt Relief Notice unless an appli-cation for such a Notice is made on his or her behalf in accordancewith section 26, and he or she satisfies the eligibility criteria specifiedin subsection (2). 5

(2) Subject to this section, the eligibility criteria referred to insubsection (1) are that the debtor, on the application date:

(a) has qualifying debts that amount to €20,000 or less;

(b) has net disposable income of €60 or less a month;

(c) has assets, calculated in accordance with subsection (6), 10worth €400 or less;

(d) is domiciled in the State or, within one year before theapplication date, has ordinarily—

(i) resided in the State, or

(ii) had a place of business in the State; 15

(e) is insolvent and has no likelihood of becoming solventwithin the period of 3 years commencing on the appli-cation date, while also maintaining a reasonable standardof living for himself or herself;

(f) has, where applicable, complied with subsection (8)(a); 20

(g) has not, in the preceding 2 years—

(i) entered into a transaction with any person at anundervalue, or

(ii) given a preference to any person;

(h) is not ineligible under subsection (11) for the issue of a 25Debt Relief Notice.

(3) Where section 130 has been applied—

(a) references in paragraphs (a) and (c) of subsection (2) to adebtor’s debts and assets, and

(b) references in subsection (6)(b)(i) to the debtor’s savings, 30

shall be construed as referring to the amounts concerned after suchset-off.

(4) A debtor shall not be eligible for a Debt Relief Notice where25 per cent or more of his or her qualifying debts were incurredduring the period of 6 months ending on the application date. 35

(5) For the purposes of subsection (2)(b)—

(a) “net disposable income” means the income available to adebtor after payment of reasonable household expensesand payments in respect of excluded debts (if any), and

26

(b) the following, in relation to a person, shall be taken intoaccount in calculating a debtor’s net disposable income—

(i) his or her salary or wages,

(ii) the welfare benefits (other than child benefit) ofwhich he or she is in receipt,5

(iii) his or her income from a pension,

(iv) contributions from other household members, and

(v) any other income available to him or her.

(6) In calculating a debtor’s assets for the purposes of subsection(2)(c)—10

(a) the value of an asset shall be taken to be its market value,irrespective of any mortgage, charge or other security towhich it is subject,

(b) the items which shall be taken into account include—

(i) savings;15

(ii) subject to paragraph (c)(iii), vehicles;

(iii) shares;

(iv) property (real and personal),

(c) the following shall not be taken into account—

(i) the following items, to a total value that does not20exceed €6,000—

(I) household equipment and appliances that arereasonably necessary to maintain a reasonablestandard of living for the debtor and his or herdependants, and25

(II) books, tools and other items of equipment usedby him or her that are reasonably necessary inhis or her employment, business or vocation;

(ii) one motor vehicle, where that motor vehicle isreasonably necessary in order for him or her to carry30out his or her everyday activities and—

(I) is worth €1,200 or less, or

(II) where the debtor, or a dependant of the debtor,has a disability, has been specially designed oradapted for use by the debtor or that depen-35dent, as the case may be,

and

(d) where a person is retired and is receiving payments froma pension fund, the payments shall be regarded as incomerather than an asset.40

27

(7) The factors to be taken into account for the purposes of sub-section (2)(e) are—

(a) the current liabilities of the debtor,

(b) the contingent and prospective liabilities of the debtor and(insofar as is ascertainable) the times at which such liab- 5ilities will become due for payment, and

(c) the current and prospective assets and income of thedebtor.

(8) (a) A debtor to whom goods have been let by an owner undera hire-purchase agreement which is in effect shall, before 10making an application under section 26, give up pos-session of the goods to the owner and, subject to para-graph (b), determine that agreement in accordance withsection 63 of the Act of 1995.

(b) Where a debtor complies with paragraph (a), the balance 15of the purchase price outstanding under the hire-pur-chase agreement concerned shall be calculated in accord-ance with section 63 of the Act of 1995, and that amountshall be treated as a qualifying debt for the purposes ofa Debt Relief Notice applied for, on behalf of or issued 20to, the debtor under this Chapter.

(9) For the purpose of subsection (2)(g)(i), a debtor enters into atransaction with another person at an undervalue if he or she—

(a) makes a gift to, or otherwise enters into a transaction with,that person on terms that provide for the debtor to 25receive no consideration, or

(b) enters into a transaction with that person for a consider-ation the value of which, in money or money’s worth, issignificantly less than the value, in money or money’sworth, of the consideration provided by the debtor. 30

(10) For the purpose of subsection (2)(g)(ii), a debtor gives a pref-erence to another person if—

(a) the debtor is insolvent,

(b) the other person is a creditor of the debtor to whom aqualifying debt is owed, or is a surety or guarantor for 35any such debt,

(c) the debtor does anything, or suffers anything to be done,which has the effect of putting that other person into aposition which, in the event that a Debt Relief Notice isissued in respect of the debtor, would be better than the 40position in which that person would have been if thatthing had not been done, and

(d) the debtor, in acting in the manner referred to in para-graph (c), intends to produce, in relation to the otherperson, the effect mentioned in that paragraph. 45

(11) A debtor is ineligible for the issue of a Debt Relief Noticewhere—

28

(a) he or she has, before the application date, been a speci-fied debtor,

(b) he or she has applied for a protective certificate underChapter 3 or 4 in the period of 12 months ending on theapplication date,5

(c) he or she, as a debtor, is, as of the application date, aparty to a Debt Settlement Arrangement or a PersonalInsolvency Arrangement which is in effect,

(d) he or she, as a debtor, successfully completed a DebtSettlement Arrangement or a Personal Insolvency10Arrangement within the period of 5 years ending on theapplication date,

(e) subject to subsection (12), he or she has applied for bank-ruptcy and the petition concerned has not been adjudi-cated before the application date,15

(f) subject to subsection (13), a creditor has, before the appli-cation date, petitioned to make the person bankrupt butthe hearing concerned has not yet taken place,

(g) he or she has, before the application date, been adjudi-cated bankrupt and the adjudication has not been20annulled or discharged,

(h) he or she is, as of the application date, a discharged bank-rupt subject to a bankruptcy payment order,

(i) he or she is, as a debtor, subject as of the application date,to an arrangement under the control of the court under25Part IV of the Bankruptcy Act 1988, or

(j) he or she has been discharged from bankruptcy within theperiod of 5 years ending on the application date.

(12) Subsection (11)(e) shall not apply where the petitionconcerned—30

(a) has not been presented before the date on which the appli-cation for the Debt Relief Notice is determined undersection 28,

(b) has been so presented, but proceedings on the petitionhave been finally disposed of before that date, or35

(c) has been so presented and proceedings in relation to thepetition remain before the High Court at that date, butthe Court has referred the person for the purposes ofmaking an application for a Debt Settlement Arrange-ment or Personal Insolvency Arrangement.40

(13) Subsection (11)(f) shall not apply where the petitionconcerned—

(a) has not been presented against the person before theapplication date,

(b) has been so presented, but proceedings on the petition45have been finally disposed of before that date, or

29

Initiation of DebtRelief Noticeprocess.

(c) has been so presented and proceedings in relation to thepetition remain before the Court at that date, but themaking of an application for a Debt Relief Notice hasbeen consented to by the creditor or the person whopresented the petition on the creditor’s behalf. 5

25.—(1) A debtor who wishes to become a specified debtor shallsubmit to an approved intermediary a written statement disclosingall of the debtor’s financial affairs, which statement shall include—

(a) such information in relation to his or her creditors, his orher debts and other liabilities and his or her assets, as 10may be prescribed, and

(b) such other information as may be prescribed.

(2) Following receipt of the information referred to in subsection(1), the approved intermediary shall hold a meeting with the debtorand, at that meeting, provide, on the basis of the information, the 15debtor with the following information and advice—

(a) whether the debtor satisfies the criteria specified insection 24(2),

(b) the general effect of making an application under section26, and the consequences, including any adverse con- 20sequences, for the debtor in the event of his or herbecoming a specified debtor,

(c) the other option or options (if any) available to him or herfor addressing his or her financial difficulties including,in particular, becoming party to a Debt Settlement 25Arrangement, Personal Insolvency Arrangement orbankruptcy, and the general effect of choosing one ormore than one of those options,

(d) the fee (if any) for making an application under section 26.

(3) Where the debtor, following the meeting referred to in subsec- 30tion (2), wishes to apply for a Debt Relief Notice, he or she shallconfirm that fact in writing to the approved intermediary.

(4) The debtor, as soon as practicable after he or she has madethe confirmation referred to in subsection (3), shall provide infor-mation that fully discloses his or her financial affairs to the 35approved intermediary.

(5) The approved intermediary, on receipt of the informationreferred to in subsection (4), shall examine that information and,having regard to the obligation of the debtor under subsections (7)and (8), assist the debtor in completing a Prescribed Financial 40Statement.

(6) On completion of a Prescribed Financial Statement under sub-section (5), the approved intermediary, if he or she is of theopinion that—

(a) the information contained in the debtor’s Prescribed Fin- 45ancial Statement is true and accurate, and

30

(b) the debtor satisfies the eligibility criteria specified insection 24(2),

shall prepare a statement to that effect.

(7) A debtor who participates in the Debt Relief Notice processunder this Chapter (including a debtor who becomes a specified5debtor), is at all times under an obligation to act in good faith andto co-operate fully in the process.

(8) A person referred to in subsection (7), in his or her dealingswith the approved intermediary concerned, shall—

(a) make full and honest disclosure to that approved inter-10mediary of all of his or her assets, income and liabilitiesand of all other circumstances that are relevant to thatprocess,

(b) comply with any reasonable request from the approvedintermediary to provide assistance, documents and infor-15mation, including any debt, tax, employment, business,social welfare or other financial records, necessary for theapplication of the process to the debtor’s case or the per-formance of the approved intermediary’s functions, and

(c) ensure that, to the best of his or her knowledge, the Pre-20scribed Financial Statement completed under this sectionis true, accurate and complete.

(9) Where, at any time during the Debt Relief Notice processafter the debtor has made the confirmation referred to in subsection(3), the approved intermediary concerned (“original approved25intermediary”)—

(a) dies,

(b) becomes incapable, through ill-health or otherwise, of per-forming the functions of an approved intermediary asrespects the debtor,30

(c) resigns from the role of approved intermediary as respectsthe debtor, or

(d) is no longer entitled to perform the functions of anapproved intermediary under this Act,

the debtor shall, as soon as practicable after becoming aware of that35fact, appoint another approved intermediary to act as his or herapproved intermediary for the purposes of this Chapter.

(10) Where—

(a) paragraph (a), (b), (c) or (d) of subsection (9) applies, or

(b) an approved intermediary has been appointed under sub-40section (9),

the debtor concerned shall, as soon as practicable, inform the Insol-vency Service of that fact and the Insolvency Service shall, on receiptof that information, notify the creditors concerned.

31

Application forDebt Relief Notice.

(11) Where an approved intermediary is appointed under subsec-tion (9)—

(a) that appointment shall not affect the validity of anythingpreviously done under this Chapter by the originalapproved intermediary, 5

(b) a Debt Relief Notice that is in effect as regards the debtorshall continue to have effect, and

(c) references in this Act to an approved intermediary, inrelation to the debtor concerned, shall be construed asincluding references to the approved intermediary so 10appointed.

26.—(1) An application for a Debt Relief Notice may only bemade—

(a) on behalf of a debtor who has made the confirmationreferred to in section 25(3), and 15

(b) by an approved intermediary who is satisfied, in relationto that debtor, of the matters referred to in paragraphs(a) to (c)of section 25(6).

(2) An application referred to in subsection (1) shall be made tothe Insolvency Service, shall be in such form as may be prescribed 20by the Insolvency Service and shall be accompanied by such fee (ifany) as may be prescribed and the following documents—

(a) a copy of the statement made by the approved intermedi-ary under section 25(6);

(b) a document signed by the debtor confirming that he or she 25satisfies the eligibility criteria specified in section 24(2);

(c) the Prescribed Financial Statement completed undersection 25;

(d) a schedule of the debtor’s debts and creditors concerned,stating in relation to each such creditor— 30

(i) the amount due to that creditor, and

(ii) whether the creditor concerned is a secured creditorand, if so, the details of any security held in respectof the debt concerned;

(e) a consent in writing signed by the debtor confirming that 35he or she consents to disclosure and processing of his orher personal data to and by the Insolvency Service andcreditors to such extent as may be necessary in connec-tion with the Debt Relief Notice process provided for inthis Chapter; 40

(f) confirmation by the debtor that the Insolvency Servicemay carry out any prescribed verification checks referredto in section 27;

(g) a document signed by the debtor stating whether, to thebest of his or her knowledge, there is any judgment or 45

32

court order in force against him or her which relates to adebt which is a qualifying debt;

(h) such other information about the debtor’s affairs(including his or her creditors, debts, liabilities, incomeand assets) as may be prescribed.5

(3) A debtor on whose behalf an application under subsection (1)has been made shall notify the approved intermediary concerned assoon as practicable if the debtor becomes aware of—

(a) any error in, or omission from, the information suppliedto the Insolvency Service in, or in support of, the10application;

(b) any material change in his or her circumstances betweenthe application date and the date on which the appli-cation is determined that would affect the determinationof the application.15

(4) An approved intermediary who receives information undersubsection (3) shall, without delay, furnish that information to theInsolvency Service.

27.—(1) For the purpose of its consideration of an applicationunder section 26, the Insolvency Service shall be entitled to request20from the approved intermediary any further information it requiresand to defer further consideration of the application until such infor-mation is furnished to it.

(2) Where an approved intermediary fails to provide the infor-mation requested by the Insolvency Service under subsection (1)25within 14 days or such longer period as the Insolvency Service maypermit, the application shall be deemed to be withdrawn.

(3) Subject to subsection (4), in considering the application for aDebt Relief Notice, the Insolvency Service shall make such enquiriesas it considers necessary to satisfy itself that—30

(a) the approved intermediary is a person entitled under thisAct to act as an approved intermediary, and

(b) having regard to the information received under section 26and subsection (1) the debtor satisfies the eligibilitycriteria specified in section 24(2).35

(4) Subject to subsections (5) to (7), for the purposes of subsection(3) the Insolvency Service shall be entitled to presume that thedebtor satisfies the eligibility criteria for a Debt Relief Notice setout in section 24(2) if the documents required under section 26 toaccompany the application have accompanied it and the Insolvency40Service has no reason to believe that the information supplied in orin support of the application, including information furnished to itunder section 26(4), is incomplete or inaccurate.

(5) The Insolvency Service may make such enquiries as it con-siders appropriate to verify the completeness or accuracy of any45matter referred to in the Prescribed Financial Statement of thedebtor or in relation to the assets, liabilities, income or expenditureof the debtor.

33

Consideration byInsolvency Serviceof application undersection 26.

Referral ofapplication toappropriate courtfor issue of DebtRelief Notice.

(6) Without prejudice to the generality of subsection (5) thematters in respect of which the Insolvency Service may make anenquiry include the following:

(a) particulars relating to bank accounts, securities or otheraccounts held, solely or jointly, by or for the benefit of 5the debtor with financial institutions or financial inter-mediaries in the State or abroad;

(b) particulars relating to assets of the debtor and the value ofsuch assets;

(c) particulars of the liabilities of the debtor; 10

(d) the employment and income of the debtor;

(e) payments received by the debtor from the Department ofSocial Protection, other Departments of State, local auth-orities or other State bodies or agencies, and whether ornot such payments are made as agent of any other person; 15

(f) taxes or charges imposed by or under statute paid or owedby the debtor, whether within or outside the State andrefunds in respect of such taxes and charges which are ormay become due to the debtor.

(7) Nothing in this section shall be construed as requiring the 20Insolvency Service to make an enquiry in any case.

(8) A person who receives an enquiry from the Insolvency Servicepursuant to this section shall be under a duty to furnish the infor-mation requested as soon as practicable.

(9) Notwithstanding anything contained in any enactment, for the 25purposes of the performance of the functions of the InsolvencyService under this Chapter, information held by the Department ofSocial Protection, other Departments of State, the Revenue Commis-sioners, local authorities or other State bodies or agencies in relationto a debtor may be furnished to the Insolvency Service. 30

28.—(1) Where, following its consideration under section 27, theInsolvency Service is satisfied that an application under section 26 isin order, it shall—

(a) issue a certificate to that effect,

(b) furnish that certificate together with a copy of the appli- 35cation and supporting documentation to the appropriatecourt, and

(c) notify the approved intermediary to that effect.

(2) Where the appropriate court receives the application andaccompanying documentation pursuant to subsection (1), it shall 40review the application and documentation and, if satisfied that thecriteria specified in section 24(2) have been satisfied, shall issue aDebt Relief Notice in respect of the debts specified in the applicationunder section 26 which it is satisfied are qualifying debts.

(3) The registrar of the appropriate court shall notify the Insol- 45vency Service where it issues a Debt Relief Notice under this section.

34

(4) In considering an application under this section the appro-priate court shall be entitled to treat a certificate issued by the Insol-vency Service under subsection (1) as evidence of the matters certi-fied therein.

29.—A Debt Relief Notice issued under section 28 shall specify—5

(a) the debtor who is the subject of the Notice,

(b) the debts (“specified qualifying debts”), referred to insection 28(2), in respect of which the Notice has beenissued, and

(c) in relation to each specified qualifying debt—10

(i) the value of the debt on the application date, and

(ii) the creditor (“specified creditor”) to whom it is owed.

30.—(1) On receiving the notification referred to in section 28(3),the Insolvency Service shall, as soon as practicable—

(a) notify the approved intermediary concerned that the Debt15Relief Notice has been issued,

(b) send the notice referred to in subsection (2) to the speci-fied debtor,

(c) send the notice referred to in subsection (3) to each speci-fied creditor, and20

(d) comply with subsection (4).

(2) A notice under subsection (1)(b) shall inform the specifieddebtor of the issue of a Debt Relief Notice in respect of which he orshe is the specified debtor, and shall be accompanied by—

(a) a copy of the Notice, and25

(b) a statement of the obligations during the supervisionperiod of a specified debtor under this Chapter.

(3) A notice under subsection (1)(c) shall inform the specifiedcreditor concerned of the issue of a Debt Relief Notice in respect ofwhich he or she is a specified creditor, and shall be accompanied30by—

(a) a copy of the Notice,

(b) a statement of the specified qualifying debt or debts ofwhich he or she is the specified creditor,

(c) a statement of his or her right under section 40 to object35to the inclusion, in the Debt Relief Notice, of a specifiedqualifying debt referred to in paragraph (b), and

(d) a copy of the Prescribed Financial Statement completedunder section 25.

(4) The Insolvency Service complies with this subsection by40recording on the Register of Debt Relief Notices—

35

Contents of DebtRelief Notice.

Duties ofInsolvency Serviceon issue of DebtRelief Notice.

Duration of DebtRelief Notice.

Effect of issue ofDebt Relief Notice.

(a) the fact that a Debt Relief Notice has been issued,

(b) the date on which the Debt Relief Notice was issued,

(c) the name and address of the specified debtor concerned,and

(d) such other details as may be prescribed under section 5128(3)(b).

31.—(1) Subject to this section, the period for which a Debt ReliefNotice shall remain in effect (“supervision period”) is the period of 3years from the date on which its issue is recorded under section 30(4).

(2) The appropriate court, on application to it by the Insolvency 10Service may extend the supervision period where it is satisfied thatsuch extension is necessary in order to allow the InsolvencyService—

(a) to carry out or complete an investigation under section37, or 15

(b) take any other action it considers necessary (whether as aresult of an investigation or otherwise) in relation to theNotice concerned.

(3) The appropriate court may extend the supervision period—

(a) for the purposes of determining an application under 20section 39, 40 or 41, or

(b) under section 38, 39, 40 or 41.

(4) Notwithstanding subsections (1) to (3), a Debt Relief Noticeshall cease to have effect on the date—

(a) on which the termination of the Notice, under section 39, 2540 or 41, takes effect, or

(b) on which it ceases to have effect under section 34(2)(a).

(5) The registrar of the appropriate court shall notify the Insol-vency Service and the approved intermediary concerned where asupervision period is extended under subsection (2) or (3). 30

(6) On receiving the notification referred to in subsection (5), theInsolvency Service shall—

(a) send a notice to the specified debtor and each specifiedcreditor, informing them of the extension, and

(b) record the extension in the Register of Debt Relief 35Notices.

32.—(1) Subject to this section, a specified creditor shall not, dur-ing the supervision period concerned—

(a) initiate any legal proceedings in relation to a specifieddebt, 40

36

(b) take any step to prosecute any such legal proceedingsalready initiated,

(c) take any step to secure or recover payment of a specifieddebt,

(d) execute or enforce a judgment or order of a court or tri-5bunal against the debtor in respect of a specified debt,

(e) take any step to recover goods in the possession or custodyof the debtor (whether or not title to the goods is vestedin the specified creditor),

(f) contact the specified debtor regarding payment of a speci-10fied debt, otherwise than at the request of the debtor, or

(g) in relation to an agreement with the specified debtor, byreason only that the debtor is insolvent or that the DebtRelief Notice concerned is in effect—

(i) terminate or amend that agreement, or15

(ii) claim an accelerated payment, or a forfeiture of aterm, under that agreement.

(2) A specified creditor shall not, during the supervision periodconcerned, in respect of a specified debt, present, apply for or pro-ceed with—20

(a) a bankruptcy petition relating to the debtor,

(b) a summons under section 8 of the Bankruptcy Act 1988, or

(c) a petition to have the specified debtor concerned adjudi-cated a bankrupt in respect of a specified qualifying debt.

(3) Without prejudice to subsections (1) and (2), during the super-25vision period concerned, no other proceedings, execution or otherlegal process may be commenced or continued against the specifieddebtor or his or her property, except with the leave of the appro-priate court and subject to any order that the court may make tostay such proceedings, execution or other legal processes for such30period as the court deems appropriate.

(4) Notwithstanding subsection (1), the fact that a Debt ReliefNotice is in effect in relation to a specified debtor shall not operateto prevent a specified creditor taking the actions referred to in sub-section (1) as respects another person who has guaranteed a debt of35the specified debtor concerned.

(5) Notwithstanding subsection (1), the fact that a Debt ReliefNotice is in effect under this Chapter in relation to a specified debtorshall not operate to prevent a specified creditor taking the actionsreferred to in subsection (3) as respects a person who has jointly40contracted with the specified debtor concerned or is jointly liablewith that specified debtor to the specified creditor and that otherperson may sue or be sued in respect of the contract without joiningthe specified debtor.

(6) Subsections (4) and (5) do not apply where a Debt Relief45Notice, or a protective certificate issued under Chapter 3 or 4, is ineffect as respects the other person.

37

General obligationsof debtor arisingunder this Chapter.

(7) In reckoning any period of time for the purpose of any applic-able limitation period in relation to any proceedings or process towhich this section applies (including any limitation period under theStatute of Limitations 1957), the period in which the Debt ReliefNotice concerned is in effect shall be disregarded. 5

(8) The period for which any judgment against the specifieddebtor in relation to a specified qualifying debt has effect (whetherunder statute or rule of court) shall, subject to the provisions of thisAct, be extended by the period that the Debt Relief Notice is ineffect. 10

(9) The Deeds of Arrangement Act 1887 does not apply to a DebtRelief Notice.

(10) While a Debt Relief Notice remains in effect under thisChapter, the information referred to in section 30(4), and a recordof any extension under this Chapter of the supervision period con- 15cerned, shall remain on the Register of Debt Relief Notices.

(11) Nothing in this section shall affect the right of a securedcreditor to enforce or otherwise deal with his or her security.

33.—(1) A specified debtor, during the supervision period con-cerned, shall inform the Insolvency Service as soon as practicable— 20

(a) of any material change in the specified debtor’s circum-stances, in particular an increase or decrease in the levelof his or her assets, liabilities or income, and

(b) where the specified debtor becomes aware of any inaccur-acy or omission in his or her Prescribed Financial State- 25ment or any other information provided, or documentssubmitted, by him or her or on his or her behalf to theInsolvency Service.

(2) Subject to subsection (4), a specified debtor who, during thesupervision period concerned, receives a gift or payment worth €500 30or more shall surrender to the Insolvency Service 50 per cent of thevalue of that gift or payment.

(3) Subject to subsection (4), a specified debtor whose income asstated in the information provided, or documents submitted by himor her or on his or her behalf under section 26, after deduction of 35income tax, social insurance contributions and other levies andcharges on the specified debtor’s income, during the supervisionperiod concerned increases by €250 or more per month, shall surren-der to the Insolvency Service 50 per cent of that increase.

(4) Subsections (2) and (3) shall cease to apply in relation to a 40specified debtor where the aggregate of the sums surrendered by thatspecified debtor under those subsections equals 50 per cent of thetotal value of the specified qualifying debts concerned.

(5) A sum surrendered to the Insolvency Service under subsection(2) or (3) shall be dealt with in accordance with section 35. 45

(6) A specified debtor, during the supervision period concerned,shall not, either alone or with any other person, obtain credit in anamount of more than €650 from any person without informing thatperson that he or she is a specified debtor.

38

34.—(1) A specified debtor may, at any time during which theDebt Relief Notice concerned is in effect, pay a sum to the Insol-vency Service in accordance with this section.

(2) Where the sum, or the aggregate of the sums paid by a speci-fied debtor under this section, is in an amount that is not less than550 per cent of the value of the specified debts concerned—

(a) the Debt Relief Notice concerned shall cease to haveeffect,

(b) his or her name shall, without delay, be removed from theRegister of Debt Relief Notices, and10

(c) he or she shall stand discharged from all of the specifiedqualifying debts.

(3) A sum surrendered by a specified debtor in compliance withsubsection (2) or (3) of section 33 shall be included in the calculationof the aggregate of the sums paid for the purposes of subsection (2).15

(4) A sum received by the Insolvency Service under this sectionshall be dealt with in accordance with section 35.

35.—(1) The Insolvency Service, on receipt of a sum under sub-section (2) or (3) of section 33 or section 34(2), shall, subject to thissection—20

(a) apportion that sum, in accordance with subsection (3) andon a pari passu basis, among the specified creditors con-cerned, and

(b) within one month of such receipt, transmit to each suchspecified creditor payment of the sum apportioned to that25creditor under paragraph (a).

(2) Where the Insolvency Service, after reasonable efforts, isunable to locate a specified creditor for the purposes of subsection(1), it shall apportion, in accordance with subsection (3) and on a paripassu basis, among the specified creditors whom it has succeeded in30locating, that creditor’s share under subsection (1)(a).

(3) In apportioning a sum under this section, the InsolvencyService shall disregard a debt owed to a specified creditor to theextent that it is secured.

36.—An appropriate court may, on application to it by the Insol-35vency Service made during the supervision period concerned, orderthe amendment of a Debt Relief Notice where it is satisfied that suchan amendment is necessary in order to address an ambiguity in, orto rectify an error in or omission from, the Notice.

37.—(1) The Insolvency Service may, during the supervision40period concerned, carry out, in accordance with this section, an inves-tigation of any matter that appears to it to be relevant to the arrivingat a decision to exercise its powers under this Chapter.

(2) Subsections (5) to (9) of section 27 apply to an investigationunder this section as they apply to an enquiry under that section.45

39

Payment byspecified debtor ofportion of specifieddebts.

Treatment byInsolvency Serviceof sums receivedunder section 33 or34.

Power to amendDebt Relief Notice.

Investigation byInsolvency Service.

Application byInsolvency Servicefor direction ofcourt.

Application byperson affected toCourt.

38.—(1) The Insolvency Service may, during the supervisionperiod concerned, make an application to the appropriate court fordirections in relation to a matter arising in connection with a DebtRelief Notice, including a matter relating to the specified debtor’scompliance with an obligation under section 33. 5

(2) An application under subsection (1) shall be made by the lodg-ing by the Insolvency Service of a notice with the appropriate court,on notice to the specified debtor.

(3) On an application under this section the court may do one ormore of the following— 10

(a) give the Insolvency Service such directions as it thinks fit,

(b) make an order for the enforcement of an obligation of thespecified debtor under section 33,

(c) extend the supervision period concerned,

(d) make an order amending the Debt Relief Notice, or 15

(e) make such other order as the court thinks fit.

(4) The power conferred on the court under subsection (3)(d),section 39(3)(d), section 40(5)(c) and section 41(4)(c) does notinclude the power to specify in a Debt Relief Notice, as a specifiedqualifying debt, any debt that was not included in the schedule 20referred to in section 26(2)(d) or in any information provided, ordocuments submitted, by the specified debtor or on his or her behalffor the purpose of his or her application for that Notice.

39.—(1) A specified debtor or a specified creditor (“applicant”)may, during the supervision period concerned, make an application 25to the appropriate court if he or she is aggrieved by any act, omissionor decision of the Insolvency Service in connection with a DebtRelief Notice.

(2) An application under subsection (1) shall be made by the lodg-ing by the applicant of a notice with the appropriate court, on notice 30to the Insolvency Service and—

(a) where the applicant is a specified creditor, to the specifieddebtor and the other specified creditors, and

(b) where the applicant is the specified debtor, to the speci-fied creditors. 35

(3) On an application under this section the court may dismiss theapplication or do one or more of the following—

(a) revoke the whole or part of any act or decision of theInsolvency Service,

(b) make an order for the enforcement of an obligation of the 40specified debtor under section 33,

(c) extend the supervision period concerned, by an additionalperiod not exceeding 12 months,

(d) make an order amending the Debt Relief Notice, or

40

(e) make such other order as the court thinks fit.

40.—(1) A specified creditor may, during the supervision periodconcerned, make an application to the appropriate court if he or sheobjects to the inclusion, as a specified qualifying debt, of a debt inrespect of which he or she is a specified creditor.5

(2) An application under subsection (1) shall be—

(a) made by the lodging by the specified creditor of a noticeof objection with the appropriate court, on notice to theInsolvency Service and the specified debtor, and

(b) based on a ground referred to in subsection (3).10

(3) The grounds of objection on which an application under sub-section (1) may be made are limited to the following matters:

(a) the specified debtor did not satisfy the eligibility criteriaspecified in section 24(2) when the application undersection 26 was made on his or her behalf:15

(b) one or more of the following applies, which causes or hascaused a material detriment to the specified creditor—

(i) a material inaccuracy or omission exists in the speci-fied debtor’s Prescribed Financial Statement or otherinformation provided, or documents submitted, by20him or her or on his or her behalf under section 26;

(ii) the specified debtor failed to comply with an obli-gation under section 33;

(iii) an adjudication in bankruptcy has been made inrelation to the specified debtor that has not been25annulled or discharged;

(iv) the specified debtor has since the coming into effectof the Debt Relief Notice, committed an offenceunder this Act;

(v) the procedural requirements specified in this Chapter30were not followed.

(4) A hearing under subsection (1) shall be heard with all dueexpedition.

(5) On an application under this section the court may dismiss theapplication or do one or more of the following—35

(a) terminate the Debt Relief Notice,

(b) extend the supervision period concerned, by an additionalperiod not exceeding 12 months,

(c) make an order amending the Debt Relief Notice, includingby removing the debt which was the subject of the objec-40tion under subsection (1), or

(d) make such other order as the court thinks fit.

41

Creditor objectionduring supervisionperiod.

Application byInsolvency Serviceto have Debt ReliefNotice terminated.

Effect oftermination of DebtRelief Notice.

41.—(1) The Insolvency Service may, during the supervisionperiod concerned, apply to the appropriate court to have a DebtRelief Notice terminated.

(2) An application under subsection (1) shall be—

(a) made by the lodging by the Insolvency Service of a notice 5with the appropriate court, on notice to the specifieddebtor and each specified creditor, and

(b) based on a ground referred to in subsection (3).

(3) The grounds on which an application under subsection (1) maybe made are limited to the following matters— 10

(a) the specified debtor did not satisfy the eligibility criteriaspecified in section 24(2) when the application undersection 26 was made on his or her behalf,

(b) a material inaccuracy or omission exists in the specifieddebtor’s Prescribed Financial Statement or any other 15information provided, or documents submitted by him orher or on his or her behalf, under section 26,

(c) the specified debtor failed to comply with an obligationunder section 33,

(d) an adjudication in bankruptcy has been made in relation 20to the specified debtor that has not been annulled ordischarged,

(e) the specified debtor has, since the coming into effect of theDebt Relief Notice, committed an offence under this Act,

(f) the procedural requirements specified in this Chapter were 25not followed.

(4) On an application under this section the court may dismiss theapplication or do one or more of the following—

(a) terminate the Debt Relief Notice,

(b) extend the supervision period concerned, by an additional 30period not exceeding 12 months,

(c) make an order for the enforcement of an obligation of thespecified debtor under section 33,

(d) make an order amending the Debt Relief Notice, or

(e) make such other order as the court thinks fit. 35

42.—(1) Where a Debt Relief Notice is terminated under thisChapter, the specified debtor shall, unless the appropriate court hasordered otherwise and subject to subsection (2), thereupon be liablein full for—

(a) all debts specified in the Debt Relief Notice at the time of 40its termination as specified qualifying debts, and

(b) all arrears, charges and interest that have accrued duringthe supervision period in relation to those debts.

42

(2) In calculating the liability of a specified debtor under subsec-tion (1), the debtor shall be given credit in respect of payments madeby him or her under subsection (2) or (3) of section 33 or 34.

43.—(1) Where a Debt Relief Notice ceases to have effect (otherthan where it is terminated under this Chapter), the specified debtor5shall, subject to this section, stand discharged from the specifiedqualifying debts concerned and all interest, penalties and other sumswhich have, since the application date, become payable in relationto those debts.

(2) Where a specified debtor stands discharged from the specified10qualifying debts under subsection (1), the Insolvency Service shall,without delay—

(a) remove from the Register of Debt Relief Notices all infor-mation recorded in it in respect of the Debt ReliefNotice,15

(b) send a notice to the specified creditors informing them ofthat fact, and

(c) issue to the specified debtor a certificate (“Debt ReliefCertificate”) confirming the discharge.

(3) Subsection (1) is without prejudice to a specified debtor’s obli-20gations under section 33(2) and (3).

(4) The discharge of the specified debtor under subsection (1)does not release any other person from—

(a) any liability (whether as partner or co-trustee of the speci-fied debtor or otherwise) from which the specified debtor25is discharged, or

(b) any liability as surety for the specified debtor or as a per-son in the nature of such a surety.

(5) Subsection (1) shall not affect the right of a secured creditorto enforce or otherwise deal with his or her security.30

44.—(1) The Insolvency Service may authorise a person, or a classof person, to perform the functions of an approved intermediaryunder this Chapter.

(2) An approved intermediary shall not charge a debtor referredto in section 25(1) any fee in connection with the performance by the35approved intermediary of his or her functions under this Chapter.

(3) An approved intermediary is not liable in damages to any per-son for anything done or omitted to be done when acting (or pur-porting to act) as an approved intermediary under this Chapter.

(4) Subsection (3) shall not apply if the act or omission concerned40was in bad faith.

(5) The Minister may prescribe the criteria for authorisation ofpersons as approved intermediaries under this section, havingregard to—

43

Discharge fromspecified qualifyingdebts.

Approvedintermediaries.

General.

Appointment ofpersonal insolvencypractitioner.

(a) the experience, qualification, training and expertiserequired for the performance of the functions of anapproved intermediary under this Chapter, and

(b) the need to ensure the protection of debtors who are ormay become specified debtors under this Chapter. 5

(6) The Insolvency Service may, out of the proceeds of feescharged under section 20, make payments to an approved intermedi-ary in connection with the performance of his or her functions underthis Chapter.

Chapter 2 10

Appointment of personal insolvency practitioner for purposes ofChapter 3 or 4

45.—A debtor who wishes to become party, as a debtor, to a DebtSettlement Arrangement under Chapter 3 or a Personal InsolvencyArrangement under Chapter 4 (“an arrangement”) shall, before 15making an application under the Chapter concerned, comply withthis Chapter.

46.—(1) A debtor to whom section 45 applies shall submit to apersonal insolvency practitioner a written statement disclosing all ofhis or her financial affairs, which statement shall include— 20

(a) such particulars of his or her creditors, his or her debtsand other liabilities and his or her assets, as may be pre-scribed, and

(b) such other financial information as may be prescribed.

(2) Following receipt of the information referred to in subsection 25(1), the personal insolvency practitioner shall hold a meeting withthe debtor and—

(a) advise him or her, on the basis of the information, of hisor her options for addressing his or her financial diffi-culties and, in particular whether he or she satisfies the 30criteria specified in Chapter 3 or 4, or both, for making aproposal for an arrangement, and

(b) provide him or her with—

(i) information relating to the procedure involved in, andgeneral effect, including the likely costs, of becoming 35party to an arrangement,

(ii) information in writing relating to the fee arrange-ments and other conditions of appointment of thepersonal insolvency practitioner in the event that heor she is appointed under subsection (3), and 40

(iii) such other information as may be prescribed.

(3) Where the debtor, following the meeting referred to in subsec-tion (2), wishes to become party to an arrangement, he or she shallappoint a personal insolvency practitioner (whether the personal

44

insolvency practitioner referred to in subsection (1) or another per-sonal insolvency practitioner) to act as his or her personal insolvencypractitioner for the purposes of Chapter 3 or 4, as the case may be.

(4) On being appointed under subsection (3), the personal insol-vency practitioner shall confirm in writing to the person that the5personal insolvency practitioner has consented to act in the role ofpersonal insolvency practitioner as respects the debtor.

(5) Where a personal insolvency practitioner appointed undersubsection (3), (“original personal insolvency practitioner”)—

(a) dies,10

(b) becomes incapable, through ill-health or otherwise, of act-ing in the role of personal insolvency practitioner asrespects the debtor,

(c) resigns from the role of personal insolvency practitioneras respects the debtor, or15

(d) is no longer entitled to act as a personal insolvency prac-titioner under this Act,

the debtor shall, as soon as practicable after becoming aware of thatfact, appoint another personal insolvency practitioner to act as his orher personal insolvency practitioner for the purposes of Chapter 3 or204, as the case may be.

(6) Where—

(a) paragraph (a), (b), (c) or (d) of subsection (5) applies, or

(b) a personal insolvency practitioner has been appointedunder subsection (5),25

the debtor concerned shall, as soon as practicable, inform the Insol-vency Service of that fact and the Insolvency Service shall, on receiptof that information, notify the creditors concerned.

(7) Where a personal insolvency practitioner is appointed undersubsection (5)—30

(a) that appointment shall not affect the validity of anythingpreviously done under this Chapter, Chapter 3 or Chapter4, as the case may be, by the original personal insol-vency practitioner,

(b) a Debt Settlement Arrangement or a Personal Insolvency35Arrangement that is in effect as regards the debtor shallcontinue to have effect, and

(c) references in this Act to a personal insolvency practitioner,in relation to the debtor concerned, shall be construed asincluding references to the personal insolvency prac-40titioner so appointed.

47.—(1) As soon as practicable after the personal insolvency prac-titioner has been appointed under section 46(3), the debtor shallprovide information that fully discloses his or her financial affairs tothe personal insolvency practitioner.45

45

Completion ofPrescribed FinancialStatement.

Personal insolvencypractitioner toadvise debtor.

(2) The personal insolvency practitioner, on receipt of the infor-mation referred to in subsection (1), shall examine that informationand, having regard to the obligation of the debtor under subsection(3), assist the debtor in completing a Prescribed Financial Statement.

(3) The debtor, when completing the Prescribed Financial State- 5ment referred to in subsection (2), is under an obligation to make afull and honest disclosure of his or her financial affairs and to ensurethat, to the best of his or her knowledge, the Prescribed FinancialStatement is true, accurate and complete.

48.—(1) On completion of the Prescribed Financial Statement in 10accordance with section 47, the personal insolvency practitioner shall,on the basis of the information disclosed to him or her by the debtorunder section 47(1), advise the debtor of the following:

(a) his or her options for addressing his or her financialdifficulties; 15

(b) his or her eligibility under section 53 or 88, as the case maybe, to make a proposal for a Debt Settlement Arrange-ment or a Personal Insolvency Arrangement, as the casemay be;

(c) the personal insolvency practitioner’s opinion as to 20whether it would be more appropriate for the debtor toenter into a Personal Insolvency Arrangement or a DebtSettlement Arrangement.

(2) The advice referred to in subsection (1)(a) shall include advicerelating to— 25

(a) the appropriateness or otherwise of the debtor making aproposal for and entering into an arrangement, havingregard to such matters as the personal insolvency prac-titioner considers relevant, but in any case, including—

(i) the debtor’s financial and other circumstances as set 30out in the Prescribed Financial Statement,

(ii) whether the debtor is likely to be able to meet thefinancial commitment associated with an arrange-ment on an ongoing basis, in particular having regardto the debtor’s payment capacity at and before the 35time at which the advice is being given,

(iii) the nature and extent of the debts owed by the debtorto his or her creditors and, in the case of secureddebts (if any), the nature of the security,

(iv) the complexity of the debtor’s case, and 40

(v) the likelihood, in the personal insolvency prac-titioner’s opinion, of an arrangement being formu-lated on terms that would provide, for the debtorand a majority of his or her creditors, an acceptablealternative to the debtor’s bankruptcy; 45

(b) the general effect of making a proposal for, and of enteringinto, an arrangement, including as to the effect on thedebtor’s credit rating;

46

(c) the consequences for the debtor of entering into anarrangement if the debtor does not comply with the termsof that arrangement;

(d) the other option or options (if any) available to the debtorand the general effect of any such option or options,5including advice relating to—

(i) negotiation with a creditor or creditors with a view toadjusting the terms of a debt owed to that creditoror creditors, whether as part of any arrears processor otherwise,10

(ii) becoming a specified debtor as respects a Debt ReliefNotice, and

(iii) bankruptcy.

(3) In advising the debtor under subsection (1)(c) of the appropri-ateness of entering into a Personal Insolvency Arrangement or a15Debt Settlement Arrangement, the personal insolvency practitionershall have regard to—

(a) the value of the debtor’s unsecured debts as compared tothe value of the debtor’s secured debts (if any),

(b) if applicable, whether the debtor has communicated with20his or her secured creditors for the purpose of seeking torenegotiate or restructure the secured debts,

(c) whether the debtor has co-operated in good faith with hisor her creditors who are secured creditors as respects thedebtor’s principal private residence in connection with25any process relating to mortgage arrears operated by thesecured creditors concerned which has been approved orrequired by the Central Bank of Ireland and whichrelates to the secured debt concerned,

(d) whether any of the debtor’s secured creditors have indi-30cated to the debtor or the personal insolvency prac-titioner a willingness to vary the terms of the secureddebt to facilitate the operation of a Debt SettlementArrangement in respect of the debtor’s unsecured debts(including, without limitation, any variation of the terms35of the secured debt that would reduce the amounts pay-able by the debtor in respect of the secured debt for theduration of the Debt Settlement Arrangement),

(e) where the debtor has proposed, but not entered into, aDebt Settlement Arrangement in respect of his or her40unsecured debts, the terms of such proposal and theresult of the creditors’ meeting to consider such pro-posal, and

(f) where the debtor has entered into a Debt SettlementArrangement in respect of his or her unsecured debts that45has come to an end, failed or otherwise terminated, thecircumstances of such ending, failure or othertermination.

(4) The personal insolvency practitioner shall confirm his or heradvice under subsection (1)(c) in writing to the debtor.50

47

Instruction bydebtor to personalinsolvencypractitioner tomake proposal forarrangement,application forprotectivecertificate.

Statement to beprepared bypersonal insolvencypractitioner.

Debt SettlementArrangement:General Conditions.

49.—Where a debtor, having received advice under section 48(1),considers that he or she should make a proposal for an arrangement,he or she shall instruct the personal insolvency practitioner in writingto make a proposal for a Debt Settlement Arrangement or a Per-sonal Insolvency Arrangement, as the case may be, on his or her 5behalf in accordance with Chapter 3 or 4, as the case may be.

50.—On receipt of an instruction under section 49, the personalinsolvency practitioner shall prepare a statement confirming that heor she is of the opinion that—

(a) the information contained in the debtor’s Prescribed Fin- 10ancial Statement is complete and accurate;

(b) the debtor is eligible under section 53 or 88, as the casemay be, to make a proposal for a Debt SettlementArrangement or Personal Insolvency Arrangement, asthe case may be; 15

(c) having considered the Personal Financial Statement com-pleted by the debtor, and having considered the mattersreferred to in section 53(2) or 88(2), as the case may be,there is no likelihood of the debtor becoming solventwithin the period of 5 years commencing on the date on 20which the statement is made;

(d) having regard to the debtor’s circumstances as set out inthe Prescribed Financial Statement, it is appropriate forthe debtor to make a proposal for a Debt SettlementArrangement as there is a reasonable prospect that the 25debtor entering into such an arrangement would facilitatethe debtor becoming solvent within a period of not morethan 5 years or, as the case may be, it is appropriate forthe debtor to make a proposal for a Personal InsolvencyArrangement as there is a reasonable prospect that the 30debtor entering into such an arrangement would facilitatethe debtor becoming solvent within a period of not morethan 6 years.

Chapter 3

Debt Settlement Arrangements 35

51.—(1) Subject to the provisions of this Act, a debtor who satis-fies the eligibility criteria specified in section 53 may make a proposalfor a Debt Settlement Arrangement with one or more of his or hercreditors in respect of the payment or satisfaction of his or her debts.

(2) A proposal for a Debt Settlement Arrangement shall be made 40on behalf of a debtor by a personal insolvency practitioner in accord-ance with the provisions of this Part.

(3) Where two or more debtors are jointly party to all of the debtsto be covered by a Debt Settlement Arrangement and each of thosedebtors satisfy the eligibility criteria specified in section 53, those 45debtors may jointly propose a Debt Settlement Arrangement and,unless otherwise specified, references in this Chapter to the “debtor”shall be construed as meaning such joint debtors.

48

52.—A debtor may enter into a Debt Settlement Arrangementonce only.

53.—(1) Subject to the provisions of this section and this Chapter,a debtor shall not be eligible to make a proposal for a Debt Settle-ment Arrangement unless he or she satisfies the following criteria—5

(a) that the debtor—

(i) is domiciled in the State, or

(ii) within one year before the date of the application fora protective certificate has ordinarily—

(I) resided in the State, or10

(II) had a place of business in the State;

(b) that the debtor is insolvent;

(c) that the debtor has completed a Prescribed FinancialStatement and has made a statutory declaration con-firming that the statement is a complete and accurate15statement of the debtor’s assets, liabilities, income andexpenditure;

(d) that the personal insolvency practitioner has issued a cer-tificate to the effect that, having considered the Pre-scribed Financial Statement completed by the debtor and20having considered the matters referred to in subsection(2), in his or her opinion there is no likelihood of thedebtor becoming solvent within the period of 5 yearscommencing on the date of the making of the declaration;

(e) that the debtor is not—25

(i) an undischarged bankrupt,

(ii) a discharged bankrupt subject to a bankruptcy pay-ment order,

(iii) a person who is a specified debtor as respects a DebtRelief Notice which is in effect,30

(iv) a person who, as a debtor, is subject to a PersonalInsolvency Arrangement which is in effect, or

(v) a person who, as a debtor, is subject to an arrange-ment under the control of the court under Part IVof the Bankruptcy Act 1988;35

(f) that the debtor has not—

(i) been the subject of a protective certificate issuedunder section 56 less than 12 months prior to the dateof the application for a protective certificate,

(ii) had his or her debts discharged pursuant to section4043(1) less than 3 years prior to the date of the appli-cation for a protective certificate,

49

Debt SettlementArrangementpermitted onceonly.

Debt SettlementArrangement:Eligibility criteria.

Debt SettlementArrangement:Application forprotectivecertificate.

(iii) had his or her debts discharged pursuant to a PersonalInsolvency Arrangement less than 5 years prior tothe date of the application for a protective certifi-cate, or

(iv) been discharged from bankruptcy less than 5 years 5prior to the date of the application for a protectivecertificate.

(2) The factors to be taken into account for the purposes of sub-section (1)(d) are—

(a) the current liabilities of the debtor, 10

(b) the contingent and prospective liabilities of the debtor and(insofar as is ascertainable) the times at which such liab-ilities will become due for payment, and

(c) the current and prospective assets and income of thedebtor. 15

(3) The criterion specified in subsection (1)(f) shall not applywhere the debtor has, on notice to the Insolvency Service, made anapplication to the appropriate court and the court has made an orderstating that it is satisfied that the current insolvency of the debtorarises by reason of exceptional circumstances or other factors which 20are substantially outside the control of the debtor and that it wouldbe just to permit the debtor to make a proposal for a Debt Settle-ment Arrangement.

54.—(1) Where a personal insolvency practitioner has beeninstructed pursuant to section 49 to make a proposal for a Debt 25Settlement Arrangement, the personal insolvency practitioner shallnotify the Insolvency Service of the debtor’s intention to propose aDebt Settlement Arrangement and apply on behalf of the debtor fora protective certificate.

(2) The application referred to in subsection (1) shall be in such 30form as may be specified by the Insolvency Service and shall beaccompanied by such fee (if any) as may be prescribed and the fol-lowing documents:

(a) the statement of the personal insolvency practitioner pre-pared under section 50; 35

(b) a document signed by the debtor confirming that he or shesatisfies the eligibility criteria specified in section 53;

(c) the statutory declaration of the debtor referred to insection 53(1)(c);

(d) the Prescribed Financial Statement; 40

(e) a schedule of the debtor’s debts and creditors concerned,stating in relation to each such creditor—


(ii) whether the creditor concerned is a secured creditorand, if so, the nature of any security held in respect 45of the debt concerned;

50

(f) a consent in writing signed by the debtor confirming thathe or she consents to disclosure and processing of his orher personal data to and by the Insolvency Service andcreditors to such extent as may be necessary in connec-tion with the Debt Settlement Arrangement procedure5provided for in this Chapter;

(g) confirmation by the debtor that the Insolvency Servicemay carry out any prescribed verification checks inaccordance with section 55.

55.—(1) In its consideration of an application under section 54,10the Insolvency Service shall be entitled to request any further infor-mation it requires from the debtor or personal insolvency prac-titioner and to defer further consideration of the application untilsuch information is furnished to it.

(2) Where a debtor or personal insolvency practitioner fails to15provide the information requested by the Insolvency Service undersubsection (1) within 14 days or such longer period as the InsolvencyService may permit the application shall be deemed to be withdrawn.

(3) Subject to subsection (4), in considering the application for aprotective certificate, the Insolvency Service shall make such enquir-20ies as it considers necessary to satisfy itself:

(a) that the personal insolvency practitioner is a personentitled to act as a personal insolvency practitioner;

(b) having regard to the documents which are required toaccompany the application for a protective certificate—25

(i) that the debtor satisfies the eligibility criteria formaking a proposal for a Debt Settlement Arrange-ment specified in section 53, and

(ii) the application does not appear to be frivolous or anattempt to frustrate the efforts of creditors to30recover debts due to them.

(4) Subject to subsections (5) to (7), for the purposes of subsection(3) the Insolvency Service shall be entitled to presume that thedebtor satisfies the eligibility criteria for a Debt Settlement Arrange-ment specified in section 53 if the documents required to be lodged35with the Insolvency Service have been so lodged and the InsolvencyService has no reason to believe that the information supplied in orin support of the application for a protective certificate is incompleteor inaccurate.

(5) The Insolvency Service may make such enquiries as it con-40siders necessary to verify the completeness or accuracy of any matterreferred to in the Prescribed Financial Statement of the debtor or inrelation to the assets, liabilities, income or expenditure of the debtor.

(6) Without prejudice to the generality of subsection (5) thematters in respect of which the Insolvency Service may make an45enquiry include the following:

(a) particulars relating to bank accounts, securities accountsor other accounts held, solely or jointly, by or for thebenefit of the debtor with financial institutions or finan-cial intermediaries in the State or abroad;50

51

Debt SettlementArrangement:Consideration byInsolvency Serviceof application forprotectivecertificate.

Debt SettlementArrangement:Referral ofapplication to courtfor issue ofprotectivecertificate.


(c) particulars of the liabilities of the debtor;


(e) payments received by the debtor from the Department of 5Social Protection or other Departments of State or otherState bodies or agencies and whether or not such pay-ments are made as agent of any other person;

(f) taxes or charges imposed by or under statute paid or owedby the debtor, whether within or outside the State and 10refunds in respect of such taxes and charges which are ormay become due to the debtor.

(7) Nothing in this section shall be construed as requiring theInsolvency Service to make an enquiry in any case.

(8) A person who receives an enquiry from the Insolvency Service 15pursuant to this section shall be under a duty to furnish the infor-mation requested as soon as reasonably practicable.

(9) Notwithstanding anything contained in any enactment, for thepurposes of the performance of the functions of the InsolvencyService under this Chapter information held by a Department of 20State, the Revenue Commissioners, a local authority or any otherState body or agency in relation to a debtor may be furnished to theInsolvency Service.

56.—(1) Where it is satisfied that the application is in order, theInsolvency Service shall issue a certificate to that effect, furnish that 25certificate together with a copy of the application and supportingdocumentation to the appropriate court and notify the personalinsolvency practitioner to that effect.

(2) Where the appropriate court receives the application for aprotective certificate and accompanying documentation pursuant to 30subsection (1), the appropriate court shall review the application anddocumentation and, if satisfied that the eligibility criteria specifiedin section 53 have been satisfied and the other relevant requirementsrelating to an application for the issue of a protective certificate havebeen met, shall issue a protective certificate. 35

(3) Subject to subsections (4) and (5), a protective certificate shallbe in force for a period of 70 days from the date of its issue.

(4) Where a protective certificate has been issued pursuant to sub-section (2), the appropriate court may on application to that courtextend the period of the protective certificate by an additional period 40not exceeding 40 days where—

(a) the debtor and the personal insolvency practitioner satisfythe court that they have acted in good faith and withreasonable expedition, and

(b) the court is satisfied that it is likely that a proposal for a 45Debt Settlement Arrangement which is likely—

(i) to be accepted by the creditors, and

52

(ii) to be successfully completed by the debtor,

will be made if the extension is granted.

(5) Where a protective certificate has been issued pursuant to sub-section (2) or extended under subsection (4), the appropriate courtmay on application to that court extend the period of the protective5certificate by a further additional period not exceeding 40 dayswhere—

(a) the personal insolvency practitioner has been appointed inaccordance with section 46(5), and

(b) the court is satisfied that the extension is necessary to10enable the personal insolvency practitioner so appointedto perform his or her functions under this Chapter.

(6) The period of a protective certificate may be extended undersubsection (5) once only.

(7) The registrar of the appropriate court shall notify the Insol-15vency Service and the personal insolvency practitioner concernedwhere the court issues or extends a protective certificate under thissection.

(8) The Insolvency Service shall enter details of the name andaddress of the debtor, the date of issue of the protective certificate,20or the extension of the protective certificate, together with such otherdetails as may be prescribed under section 128(3)(b), in the Registerof Protective Certificates.

(9) In each case where a protective certificate has been issued andthe personal insolvency practitioner has been notified of such issue,25that practitioner shall notify each of the creditors specified in theschedule of creditors of the fact of such issue and that the debtorintends to make a proposal for a Debt Settlement Arrangement.

(10) A notification referred to in subsection (9) shall contain astatement of—30

(a) the effect of the protective certificate under section 57, and

(b) the right of the creditor under section 58 to appeal theissue of the protective certificate.

(11) Notwithstanding the provisions of subsections (3), (4) and(5), a protective certificate that is in force on the date on which a35proposal for a Debt Settlement Arrangement is approved in accord-ance with section 67 shall continue in force until it ceases to haveeffect in accordance with section 71.

(12) A protective certificate issued under this section shall—

(a) specify—40

(i) the name of the debtor who is the subject of it,

(ii) the debts (“specified debts”) which are subject to it,and

(iii) the name of each creditor to whom a specified debtis owed,45

53

Debt SettlementArrangement:Effect of issue ofprotectivecertificate.

and

(b) contain such other information as may be prescribed.

(13) In considering an application under this section the appro-priate court shall be entitled to treat a certificate issued by the Insol-vency Service under subsection (1) as evidence of the matters certi- 5fied therein.

57.—(1) Subject to subsections (3) and (4), a creditor to whomnotice of the issue of a protective certificate has been given shall not,whilst the protective certificate remains in force—

(a) initiate any legal proceedings in relation to a debt which 10is a specified debt;

(b) take any step to prosecute legal proceedings alreadyinitiated;

(c) execute or enforce a judgment held against the debtor inrespect of a specified debt; 15

(d) take any step to recover goods in the possession or custodyof the debtor (whether or not title to the goods is vestedin the creditor);

(e) contact the debtor regarding payment of the debt other-wise than at the request of the debtor; 20

(f) in relation to an agreement with the debtor, including asecurity agreement, by reason only that the debtor isinsolvent or that the protective certificate has beenissued—

(i) terminate or amend that agreement, or 25


(2) Where a creditor has been notified of the granting of a protec-tive certificate, whilst the protective certificate remains in force nobankruptcy petition relating to the debtor— 30

(a) may be presented by a creditor,

(b) in a case where the petition has been presented by a credi-tor, may be proceeded with.

(3) Without prejudice to subsections (1) and (2), no other pro-ceedings, no enforcement of security and no execution or other legal 35process may be commenced or continued against the debtor or hisor her property, except with the leave of the court and subject to anyorder the court may make to stay such proceedings, enforcement orexecution for such period as the court deems appropriate pendingthe outcome of attempts to reach a Debt Settlement Arrangement. 40

(4) Notwithstanding subsection (1), the fact that a protective cer-tificate is in force in relation to a debtor under this Chapter shall notoperate to prevent a creditor taking the actions referred to in subsec-tion (1) as respects another person who has guaranteed the debts ofthe debtor to which the protective certificate relates. 45

54

(5) Notwithstanding subsection (1), the fact that a protective cer-tificate is in force in relation to a debtor under this Chapter shall notoperate to prevent a creditor taking the actions referred to in subsec-tion (3) as respects a person who has jointly contracted with thedebtor or is jointly liable with the debtor to the creditor and that5other person may sue or be sued in respect of the contract withoutjoining the debtor.

(6) Subsections (4) and (5) do not apply where a protective certifi-cate is also in force as respects the other person.

(7) In reckoning any period of time for the purpose of any applic-10able limitation period in relation to any proceedings or process towhich subsection (1) or (3) applies (including any limitation periodunder the Statute of Limitations 1957), the period in which the pro-tective certificate concerned is in force under section 56 shall be dis-regarded.15

(8) Subsections (1), (2) and (3) shall not apply to debts or liabilit-ies referred to in section 60(2)(d).

58.—(1) Where a creditor is aggrieved by the issue of a protectivecertificate that creditor may within 14 days of the giving of notice ofthe issue of the protective certificate to that creditor apply to the20appropriate court for an order directing that the protective certificateshall not apply to that creditor.

(2) A creditor who brings an application under subsection (1) shallgive notice to the Insolvency Service and the relevant personal insol-vency practitioner and to such other persons as the court may direct25of that fact, and the application shall be made in such form as isprovided for in rules of court.

(3) In determining an application under this section the court shallnot make the order directing that the protective certificate shall notapply to that creditor unless it is satisfied that—30

(a) failing to give such direction would cause irreparable lossto the creditor which would not otherwise occur, and

(b) no other creditor to whom notice of the protective certifi-cate has been given would be unfairly prejudiced.

(4) In determining the costs of the application the court shall have35regard to the objective that all the parties to such an applicationshould bear their own costs unless to do so would cause a seriousinjustice to the parties to the application.

(5) Where the court makes an order under this section, the courtshall, unless it considers that there are good reasons not to do so,40direct the creditor to hold any moneys or other assets recovered intrust for the benefit of the other creditors to whom the protectivecertificate applies, pending a further direction on the matter by thecourt.

(6) A hearing under subsection (1) shall be held with all due45expedition.

55

Debt SettlementArrangement: Rightof appeal asrespects protectivecertificate.

Actions to be takenby personalinsolvencypractitionerfollowing issue ofprotectivecertificate.

Mandatoryrequirementsconcerning DebtSettlementArrangement.

59.—(1) Where a protective certificate has issued, the personalinsolvency practitioner shall as soon as practicable thereafter—

(a) give written notice to those creditors that the personalinsolvency practitioner has been appointed by the debtorfor the purpose of making a proposal for a Debt Settle- 5ment Arrangement and invite the creditors concerned tomake submissions to the personal insolvency practitionerregarding the debts concerned and the manner in whichthe debts might be dealt with as part of a Debt SettlementArrangement, and such notice shall be accompanied by 10the debtor’s completed Prescribed Financial Statement;

(b) consider any submissions made by creditors in accordancewith paragraph (a) regarding the debts and the mannerin which the debts might be dealt with as part of a DebtSettlement Arrangement, including any submission made 15by a creditor with respect to previous or existing offers ofarrangements made by the creditor to or with the debtor.

(2) (a) A personal insolvency practitioner may in any case requesta creditor to file a proof of debt and the debt shall beproved in the same manner as a debt of a bankrupt is 20proved under the Bankruptcy Act 1988 and, subject tosubsection (3), paragraphs 1 to 22 of the First Scheduleof that Act shall apply with all necessary modifications tothe proof of such debts;

(b) Subject to paragraph (c), a creditor who does not comply 25with a request under paragraph (a) is not entitled to—

(i) vote at a meeting referred to in section 67, 77 or 78, or

(ii) share in any distribution that may be made under theDebt Settlement Arrangement concerned;

(c) Where a creditor to whom paragraph (b) applies files a 30proof of debt in the manner specified in paragraph (a),paragraph (b) shall cease to apply, but without prejudiceto anything done while that paragraph applied.

(3) In applying the First Schedule of the Bankruptcy Act 1988 toproof of debts under this section— 35

(a) a reference in that Schedule to the Court and the OfficialAssignee shall be read as a reference to the personalinsolvency practitioner, and

(b) a reference to a bankrupt shall be read as the reference tothe debtor to whom the proposal for a Debt Settlement 40Arrangement relates.

60.—(1) Subject to the mandatory requirements referred to insubsection (2), the terms of a Debt Settlement Arrangement shall bethose which are agreed to by the debtor and, subject to this Chapter,approved by a majority of the debtor’s creditors in accordance with 45this Chapter.

(2) The mandatory requirements referred to in subsection (1)are—

56

(a) the maximum duration of a Debt Settlement Arrangementshall be 60 months but a Debt Settlement Arrangementmay provide that this period may be extended for afurther period of not more than 12 months in such cir-cumstances as are specified in the terms of the Debt5Settlement Arrangement;

(b) subject to paragraphs (c) and (d), where the debtor per-forms all of his or her obligations specified in a DebtSettlement Arrangement, he or she shall stand dischargedfrom the remainder of the debts covered by the Debt10Settlement Arrangement;

(c) a Debt Settlement Arrangement shall not release thedebtor from any of the following debts or liabilities unlessthe proposed Debt Settlement Arrangement explicitlyprovides for the compromise of that debt or liability and15the relevant creditor for any of the following debts orliabilities has agreed in writing to accept the compromisecontained in the Debt Settlement Arrangement (insofaras it applies to that creditor’s debt)—

(i) any liability arising out of a domestic support order,20

(ii) any liability arising out of any tax, duty, levy or othercharge of a similar nature owed or payable to theState,

(iii) any amount payable by the debtor under the LocalGovernment (Charges) Act 2009,25

(iv) any amount payable by the debtor under the LocalGovernment (Household Charge) Act 2011,

(v) rates to the local authority (within the meaning of theLocal Government Act 2001),

(vi) any debt or liability in respect of moneys advanced to30the debtor by the Health Service Executive underthe Nursing Homes Support Scheme Act 2009,

(vii) any debt due by the debtor to any owners’ manage-ment company in respect of annual service chargesunder section 18 of the Multi-Unit Developments35Act 2011 or contributions due under section 19 ofthat Act,

(viii) any liability arising out of damages awarded by acourt (or another competent authority) in respect ofpersonal injuries or wrongful death arising from the40tort of the debtor,

(ix) any debt or liability arising from a loan (or for-bearance of a loan) obtained through fraud, misap-propriation, embezzlement or fraudulent breach oftrust;45

(d) a Debt Settlement Arrangement shall not release thedebtor from any debt or liability arising by virtue of acourt order made under the Proceeds of Crime Acts 1996and 2005 or by virtue of a fine ordered to be paid by acourt in respect of a criminal offence;50

57

(e) a Debt Settlement Arrangement shall not require thedebtor to sell any of his or her assets that are reasonablynecessary for the debtor’s employment, business orvocation unless the debtor explicitly consents to suchsale; 5

(f) a Debt Settlement Arrangement shall not contain anyterms which would require the debtor to make paymentsof such an amount that the debtor would not havesufficient income to maintain a reasonable standard ofliving for the debtor and his or her dependants; 10

(g) a Debt Settlement Arrangement shall—

(i) make provision for the costs and outlays of the per-sonal insolvency practitioner which relate to thematters referred to in sections 45 to 49 and thisChapter and to the ongoing administration of the 15Arrangement,

(ii) indicate the likely amount of the fees, costs and out-lays to be incurred, or where this is not practicable,the basis on which those fees, costs and outlays willbe calculated, and 20

(iii) specify the person or persons by whom those fees,costs and charges are payable and the manner inwhich they have been or are to be paid;

(h) a Debt Settlement Arrangement shall make provision forthe manner in which the debtor’s debts are to be treated 25in the event of the death or mental incapacity of thedebtor;

(i) a Debt Settlement Arrangement shall not require that thedebtor dispose of his or her interest in his or her principalprivate residence or to cease to occupy such residence 30unless the provisions of section 64(3) apply;

(j) a Debt Settlement Arrangement shall provide that the cir-cumstances of the debtor be reviewed by the personalinsolvency practitioner at regular intervals which arespecified in the Arrangement (which intervals are not 35greater than 12 months) during the currency of the DebtSettlement Arrangement;

(k) a Debt Settlement Arrangement shall provide that thereview referred to in paragraph (j) shall include the prep-aration by the debtor of a new Prescribed Financial State- 40ment, a copy of which together with a statement by thepersonal insolvency practitioner as to whether he or sheconsiders that statement to be complete and accurate,shall be sent by the personal insolvency practitioner toeach creditor; 45

(l) the terms of a Debt Settlement Arrangement shall specifythe circumstances where the personal insolvency prac-titioner shall be obliged to propose a variation of theDebt Settlement Arrangement in accordance withsection 77. 50

(3) The Insolvency Service may publish a Code of Practice provid-ing guidance on any of the matters set out in subsection (2).

58

(4) With respect to the matters set out in paragraph (f) of subsec-tion (2), and without prejudice to subsection (3), for the purposes of apersonal insolvency practitioner determining whether a debtor wouldhave sufficient income to maintain a reasonable standard of livingfor the debtor and his or her dependants under the Debt Settlement5Arrangement, the personal insolvency practitioner shall have regardto any guidelines on reasonable expenditure and essential income fordebtors published by the Insolvency Service.

61.—(1) Subject to the provisions of this Act, a proposal for aDebt Settlement Arrangement may incorporate one or more of the10options in subsection (2) with respect to payments to creditors.

(2) The terms of a proposal for a Debt Settlement Arrangementmay include any one or more of the following:

(a) a lump sum payment to creditors, whether provided fromthe debtor’s own resources or from the resources of15other persons;

(b) a payment arrangement with creditors;

(c) an agreement by the debtor to transfer some or all of thedebtor’s property to a person (who may be the personalinsolvency practitioner) to hold the property in trust for20the benefit of the creditors;

(d) a transfer of specified assets of the debtor to creditors gen-erally or to a specified creditor;

(e) a sale of specified assets of the debtor by the personalinsolvency practitioner and the payment of the proceeds25of such sale to creditors.

(3) Unless provision is otherwise made in the Debt SettlementArrangement, the arrangement shall provide for payments to credi-tors to be made on a pari passu basis, and where so otherwise pro-vided the Debt Settlement Arrangement shall specify the reasons for30such provision being made.

(4) The payment of moneys or the performance of obligationsprovided for by a Debt Settlement Arrangement may be secured bya charge or a guarantee given by the debtor or a charge or guaranteegiven by a person other than the debtor.35

(5) Subject to the provisions of this Act, the terms of a DebtSettlement Arrangement may include provisions relating to pay-ments other than those specified in this section.

62.—(1) Subject to subsection (3), a debt which, if the debtor con-cerned were a bankrupt would be a debt—40

(a) that by virtue of section 81 of the Bankruptcy Act 1988 isto be paid in priority to all other debts, or

(b) that by virtue of any other statutory provision is to beincluded among such debts,

shall be paid in full by the debtor unless the creditor concerned45otherwise agrees and provision is so made in the terms of the DebtSettlement Arrangement and such debt is in this Chapter referred to

59

Debt SettlementArrangement: Non-exhaustive list ofmatters for possibleinclusion.

Preferential debts inDebt SettlementArrangement.

Secured creditorsand DebtSettlementArrangement.

Principal privateresidence in DebtSettlementArrangement.

as a “preferred debt”, and where those debts are to be paid in fullthe provisions of section 81 of the Bankruptcy Act 1988 shall applywith all necessary modifications.

(2) In notifying creditors of the issue of a protective certificate,the personal insolvency practitioner shall indicate that any creditor 5who considers some or all of his or her debt to be a preferential debtis required to furnish evidence of the circumstances of how that debtor part of that debt is claimed to be a preferential debt within suchreasonable period as may be specified, and that in the absence ofsuch evidence, the proposal for a Debt Settlement Arrangement may 10be prepared on the basis that the debt concerned is not a preferen-tial debt.

(3) Where a creditor fails to satisfy the personal insolvency prac-titioner that his or her debt is a preferential debt the debt shall betreated as not being a preferential debt for the purposes of a Debt 15Settlement Arrangement.

63.—(1) Subject to this section, nothing in this Chapter affects theright of a secured creditor of the debtor to enforce or otherwise dealwith his or her security.

(2) A secured creditor of the debtor may not participate in a Debt 20Settlement Arrangement with respect to a secured debt.

(3) Subsection (2) shall not operate to prevent the debtor or thepersonal insolvency practitioner from liaising or sharing information(including a copy of the debtor’s Prescribed Financial Statement andinformation relating to a proposed or existing Debt Settlement 25Arrangement) with a secured creditor in connection with a proposedor existing Debt Settlement Arrangement.

(4) For the avoidance of doubt, a secured creditor shall not bedeemed to participate in or otherwise be bound by a Debt SettlementArrangement as a result of entering into an agreement with the 30debtor to vary the terms of the secured debt following contactbetween the secured creditor and debtor, or as applicable, the per-sonal insolvency practitioner as referred to in subsection (3)(including, without limitation, any variation of the terms of thesecured debt that would reduce the amounts payable by the debtor 35in respect of the secured debt for the duration of the Debt Settle-ment Arrangement).

64.—(1) In formulating a proposal for a Debt SettlementArrangement a personal insolvency practitioner shall, insofar asreasonably practicable, and having regard to the matters referred to 40in subsection (2), formulate the proposal on terms that will notrequire the debtor to dispose of an interest in or to cease to occupyhis or her principal private residence and the personal insolvencypractitioner shall consider any appropriate alternatives to suchvacation. 45

(2) The matters referred to in subsection (1) are—

(a) the costs likely to be incurred by the debtor by remainingin occupation of his or her principal private residence(including rent, mortgage loan repayments, insurancepayments, owners’ management company service charges 50and contributions, taxes or other charges relating toownership or occupation of the property imposed by or

60

under statute, and necessary maintenance in respect ofthe principal private residence),

(b) the debtor’s income and other financial circumstances asdisclosed in the Prescribed Financial Statement,

(c) the ability of other persons residing with the debtor in the5principal private residence to contribute to the costsreferred to in paragraph (a), and

(d) the reasonable living accommodation needs of the debtorand his or her dependants and having regard to thoseneeds the cost of alternative accommodation (including10the costs which would necessarily be incurred inobtaining such accommodation).

(3) Where—

(a) the debtor confirms in writing to the personal insolvencypractitioner that the debtor does not wish to remain in15occupation of his or her principal private residence; or

(b) the personal insolvency practitioner, has, having discussedthe issue with the debtor, formed the opinion that, takingaccount of the matters referred to in subsection (2), thecosts of continuing to reside in the debtor’s principal20private residence are disproportionately large,

the personal insolvency practitioner shall not be required to formu-late the proposal for a Debt Settlement Arrangement on terms thatwill not require the debtor to cease to occupy his or her principalprivate residence.25

(4) A Debt Settlement Arrangement shall not contain terms pro-viding for a disposal of the debtor’s interest in the principal privateresidence unless:

(a) the debtor has obtained independent legal advice inrelation to such disposal or, having been advised by the30personal insolvency practitioner to obtain such legaladvice, has declined to do so; and

(b) to the extent that the provisions of the Family Home Pro-tection Act 1976 or the Civil Partnership and CertainRights and Obligations of Cohabitants Act 2010 apply to35the property, that all relevant provisions of those Actsare complied with.

65.—(1) Where a personal insolvency practitioner has prepared aproposal for a Debt Settlement Arrangement and the debtor hasconsented to that proposal and the calling of a creditors’ meeting,40the personal insolvency practitioner shall arrange for the holding ofa meeting of the creditors of the debtor for the purpose of consider-ing the proposal for a Debt Settlement Arrangement.

(2) Notice of the meeting shall be given by the personal insol-vency practitioner to each creditor in accordance with regulations45made by the Minister under section 69 together with copies of theproposed Debt Settlement Arrangement and the other docu-mentation referred to in section 66.

61

Debt SettlementArrangement:Calling of creditors’meeting.

Debt SettlementArrangement:Documents to begiven to creditorsand the InsolvencyService when callinga creditors’meeting.

(3) Notwithstanding regulations made under section 69, when call-ing a creditors’ meeting under this section, the personal insolvencypractitioner shall—

(a) give creditors at least 14 days’ written notice of the meet-ing and the date on which, and time and place at which, 5the meeting will be held;

(b) accompany the notice referred to in paragraph (a) with thedocuments referred to in section 66;

(c) lodge a copy of the notice referred to in paragraph (a) andthe documents referred to in section 66 with the Insol- 10vency Service.

(4) Where the debtor does not, before the expiry of the protectivecertificate, consent to the calling of a creditors’ meeting, the pro-cedure as respects that debtor making a proposal for a Debt Settle-ment Arrangement shall be treated as having concluded. 15

66.—(1) The documents referred to in section 65(3)(b) are—

(a) a completed statement of the debtor’s financial affairs,showing the debtor’s position of insolvency, in the formof the Prescribed Financial Statement;

(b) a document containing the terms of the proposal for a 20Debt Settlement Arrangement;

(c) a statement by the personal insolvency practitioner to theeffect that—

(i) he or she has been instructed by the debtor to act aspersonal insolvency practitioner in connection with 25the Debt Settlement Arrangement procedure, he orshe has consented to so act and that he or she is aperson entitled to act as a personal insolvency prac-titioner,

(ii) he or she has advised the debtor in accordance with 30section 48 of the debtor’s options for managing thedebtor’s financial difficulties,

(iii) he or she is not aware of any reasonable grounds tobelieve that the information contained in thedebtor’s Prescribed Financial Statement is not com- 35plete and accurate, and

(iv) he or she is of the opinion that the debtor satisfies theeligibility criteria for the proposal of a Debt Settle-ment Arrangement specified in section 53;

(d) a report of the personal insolvency practitioner— 40

(i) describing the outcome for creditors and, havingregard to the financial circumstances of the debtor,whether or not the proposed Debt SettlementArrangement represents a fair outcome for thecreditors, and indicating, where relevant, how that 45financial outcome for creditors, (whether individu-ally or as a member of a class of creditors) under theterms of the proposal is likely to be better than the

62

estimated financial outcome for such creditors if thedebtor were to be adjudicated a bankrupt (havingregard to, amongst other things, the estimated costsof the bankruptcy process), and

(ii) indicating whether or not he or she is of the opinion5that the debtor is reasonably likely to be able tocomply with the terms of the proposed Debt Settle-ment Arrangement.

(2) Where a debtor’s financial position has materially changed inthe period between the completion by him or her of a Prescribed10Financial Statement under section 47 and the sending of the noticeunder section 65(3)—

(a) the debtor shall inform the personal insolvency prac-titioner of that fact, and

(b) the personal insolvency practitioner shall, if he or she con-15siders that the change merits the completion of a newPrescribed Financial Statement, assist the debtor in com-pleting such a new Statement, which shall accompany thenotice under section 65(3).

67.—(1) A creditors’ meeting called by the personal insolvency20practitioner for the purpose of approving a proposal for a DebtSettlement Arrangement given to the creditors under section 65(3)shall be conducted in accordance with section 69 and regulationsmade under it.

(2) The personal insolvency practitioner may, where he or she25believes it is in the interests of obtaining approval of a proposedDebt Settlement Arrangement by the creditors at the meeting,adjourn the meeting and, with the consent in writing of the debtor,shall prepare an amended proposal for a Debt SettlementArrangement.30

(3) Where the personal insolvency practitioner prepares anamended proposal for a Debt Settlement Arrangement pursuant tosubsection (2) he or she shall—

(a) notify each creditor of the time, date and venue of theadjourned meeting, and35

(b) furnish such amended proposal to each creditor,

at least 7 days before the day of the adjourned meeting, unless all ofthe creditors waive the right to receive such period of notice inwriting.

(4) An adjournment for the purpose of preparing an amended40proposal for a Debt Settlement Arrangement pursuant to subsection(2) may occur once only in the course of the period of validity of aprotective certificate (including any extension of such period).

(5) Subject to subsection (5), creditors at a meeting under thissection, having considered a proposal for a Debt Settlement45Arrangement shall vote, in accordance with section 68, either by vot-ing in favour or against the approval of the proposed Debt Settle-ment Arrangement.

63

Debt SettlementArrangement:Conduct ofcreditors’ meeting.

Debt SettlementArrangement:Voting at creditors’meeting.

(6) Subject to subsection (2), the proposal for a Debt SettlementArrangement may, before the proposal has been voted upon, be sub-ject to a proposal for a modification where the modificationaddresses an ambiguity or rectifies an error in the proposed DebtSettlement Arrangement and where— 5

(a) the modification has been proposed by a creditor or thepersonal insolvency practitioner, and

(b) the debtor gives his or her written consent to the modi-fication.

(7) Where, on the taking of a vote under subsection (5), the pro- 10posal is not approved in accordance with section 68, the Debt Settle-ment Arrangement procedure shall be deemed to have come to anend, and the protective certificate issued under section 57 shall ceaseto have effect.

(8) Where only one creditor is entitled to vote at the creditors’ 15meeting (whether in respect of one or more debts), the requirementto hold a creditors’ meeting may be satisfied where the creditor con-cerned notifies the personal insolvency practitioner in writing of thatcreditor’s approval or otherwise of the proposal for a Debt Settle-ment Arrangement. 20

68.—(1) A vote held under section 67(5) shall be held in accord-ance with this section and regulations under section 69.

(2) Subject to subsection (3), the voting rights exercisable by acreditor shall be proportionate to the value of the debt or debts owedby the debtor to that creditor. 25

(3) Where the amount of a debt owed to a creditor is owed in acurrency other than the currency of the State, the amount of the debtshall be converted into the currency of the State at the rate publishedby the Central Bank of Ireland on the date of the issue of the protec-tive certificate. 30

(4) A creditor referred to in section 60(2)(c) shall not be entitledto vote at a creditors’ meeting.

(5) A creditor to whom a preferred debt is due shall not beentitled to vote in respect of that debt at a creditors’ meeting unlessthat creditor has furnished to the personal insolvency practitioner a 35waiver in writing of the creditors’ right to have that debt treated asa preferred debt.

(6) Subsection (5) does not apply to a creditor to whom subsection(4) applies.

(7) A creditor who is a connected person of the debtor may not 40vote in favour of a proposal for a Debt Settlement Arrangement ata creditors’ meeting.

(8) Subject to any regulations made under section 69 relating toproxies, for the purposes of this section, only the person who appearsto the personal insolvency practitioner to be the owner of the debt 45(or an agent acting on behalf of that person) shall be entitled toreceive notices required to be sent to a creditor under this Chapteror to vote at the creditors’ meeting.

64

(9) A proposal for a Debt Settlement Arrangement shall be con-sidered as having been approved by a creditors’ meeting held underthis Chapter where a majority of creditors representing not less than65 per cent in value of the total of the debtor’s debts due to thecreditors participating in the meeting and voting have voted in favour5of the proposal.

(10) Where no creditor votes, the proposed Debt SettlementArrangement shall be deemed to have been approved under thissection.

69.—(1) The Minister may make regulations relating to the hold-10ing of creditors’ meetings under this Chapter, and without prejudiceto the generality of the Minister’s power under this section, suchregulations may provide for—

(a) the holding of a meeting in circumstances where not all ofthe creditors are present in the same venue,15

(b) the voting process including providing for the communi-cation of creditors’ votes to the personal insolvency prac-titioner by telephony or electronically, and

(c) appointment of proxies to vote at such meetings.

(2) The venue for the holding of a creditors’ meeting shall be20situated within the State.

(3) The period of notice of the meeting of creditors shall be 14days, but such period may be waived or abridged where the consentof all the creditors to such waiver or abridgement is given in writing.

70.—(1) Where a Debt Settlement Arrangement is approved at a25creditors’ meeting in accordance with section 68, the personal insol-vency practitioner shall as soon as practicable after the meeting hasconcluded notify the Insolvency Service and each creditor concernedand enclose with that notification—

(a) a certificate with the result of the vote taken at the credi-30tors’ meeting, identifying the number of votes, in valueof the creditors present and voting, in favour and againstthe proposed Debt Settlement Arrangement, and

(b) a copy of the approved Debt Settlement Arrangement.

(2) The personal insolvency practitioner shall, in addition to the35documents referred to in subsection (1) also send a notice to eachcreditor indicating that he or she may make objection to the cominginto effect of the Debt Settlement Arrangement by lodging a noticeof objection with the appropriate court, within 14 days of the dateof the sending of that notice.40

(3) A creditor may lodge a notice of objection with the appro-priate court within 14 days of the date of the sending by the personalinsolvency practitioner of the notice referred to in subsection (2) andshall at the same time send a copy of the notice of objection to—

(a) the Insolvency Service, and45

(b) the personal insolvency practitioner.

65

Debt SettlementArrangement:Procedures for theconduct ofcreditors’ meetings.

Steps to be takenby personalinsolvencypractitionerfollowing approvalof proposal forDebt SettlementArrangement.

Steps to be takenby InsolvencyService followingnotification ofapproval of DebtSettlementArrangement bypersonal insolvencypractitioner undersection 70.

Determination ofobjection lodgedunder section 70.

Coming into effectof Debt SettlementArrangement.

71.—(1) On receipt of a notification by the personal insolvencypractitioner pursuant to section 70(1), the Insolvency Service shallrecord the approval in the Register of Debt Settlement Arrange-ments, and notify the appropriate court and furnish to that court acopy of the Debt Settlement Arrangement. 5

(2) Where the notification of the personal insolvency practitioneris received by the Insolvency Service before the expiry of the periodof the protective certificate, such protective certificate shall continuein force until the Debt Settlement Arrangement comes into effect orall objections lodged with the appropriate court pursuant to section 1069(3) have been determined by the court.

72.—(1) The grounds on which objection may be made to thecoming into effect of the Debt Settlement Arrangement are thosespecified in section 84.

(2) The Courts Service shall make appropriate endeavours to 15facilitate the early hearing of the objection lodged under section 70,having regard to the continuation in force of the protective certificatepending determination of the objection.

(3) Where the appropriate court upholds the objection to theDebt Settlement Arrangement, the Debt Settlement Arrangement 20procedure shall be deemed to have come to an end, and the protec-tive certificate issued by the Insolvency Service shall cease to haveeffect.

73.—(1) Where no objection is lodged by a creditor with theappropriate court within 14 days of the giving of the notice referred 25to in section 70, the court shall, where it is satisfied that the eligibilitycriteria specified in section 53 have been satisfied and that the requi-site percentage of creditors referred to in section 68(9) has approvedthe proposal for a Debt Settlement Arrangement, approve the com-ing into effect of the Arrangement. 30

(2) Where an objection is lodged with the appropriate court andthe matter is determined by the court on the basis that the objectionshould not be allowed, the court shall, where it is satisfied that theeligibility criteria specified in section 53 have been satisfied and thatthe requisite percentage of creditors referred to in section 68(9) has 35approved the proposal for a Debt Settlement Arrangement, approvethe coming into effect of the Arrangement.

(3) The court may accept a certificate issued by the InsolvencyService certifying that the eligibility criteria have been satisfied asevidence that such eligibility criteria have been satisfied. 40

(4) The court may accept the certificate issued by the personalinsolvency practitioner concerned pursuant to section 70(1) as evi-dence that the requisite percentage of creditors referred to in section68(9) has approved the proposal for a Debt SettlementArrangement. 45

(5) Where the court approves the coming into effect of the DebtSettlement Arrangement it shall arrange for the Insolvency Serviceto be notified in accordance with rules of court.

(6) On receipt of a notification by it from the court, the Insol-vency Service shall— 50

66

(a) notify the personal insolvency practitioner concerned, and

(b) register the Debt Settlement Arrangement in the Registerof Debt Settlement Arrangements.

(7) The Debt Settlement Arrangement shall come into effectupon being registered in the Register of Debt Settlement5Arrangements.

74.—(1) A Debt Settlement Arrangement having been registeredin the Register of Debt Settlement Arrangements shall have effectaccording to its terms and remain in effect until—

(a) it is completed in accordance with its terms or the terms10of any variation made, or

(b) it is terminated in accordance with this Chapter.

(2) While a Debt Settlement Arrangement is in effect, the follow-ing shall be parties to it and, subject to this Act, shall be bound byits terms—15

(a) the debtor, and

(b) every creditor who was entitled to vote at the creditors’meeting regardless of whether such creditor voted toapprove the proposal for the Debt SettlementArrangement.20

(3) Where a Debt Settlement Arrangement is in effect, a creditorwho is bound by it shall not—

(a) initiate any legal proceedings in relation to a specifieddebt;

(b) take any step to prosecute such legal proceedings already25initiated;

(c) take any step to secure or recover payment of a specifieddebt;

(d) execute or enforce a judgment or order of a court or tri-bunal against the debtor in respect of a specified debt;30

(e) take any step to recover goods in the possession or custodyof the debtor (whether or not title to the goods is vestedin the creditor);

(f) otherwise initiate contact with the debtor in respect of pay-ment of a specified debt;35

(g) in relation to an agreement with the debtor, other thana security agreement, by reason only that the debtor isinsolvent or that a Debt Settlement Arrangement is ineffect—

(i) terminate or amend that agreement, or40


67

Effect of DebtSettlementArrangement.

Operation of termsof Debt SettlementArrangement.

(4) Where a Debt Settlement Arrangement is in effect, a creditorof that debtor shall not apply for the issue of a summons undersection 8 of the Bankruptcy Act 1988 or present a petition to havethe debtor concerned adjudicated a bankrupt in respect of a debtcovered by the Debt Settlement Arrangement. 5

(5) Where a Debt Settlement Arrangement is in effect, and acreditor of that debtor has applied for the issue of a summons undersection 8 of the Bankruptcy Act 1988 or has presented a petition tohave the debtor concerned adjudicated a bankrupt in respect of adebt covered by the Debt Settlement Arrangement, the creditor shall 10not proceed with the summons or the petition.

(6) Nothing in subsections (3) and (4) shall operate to prevent acreditor taking the actions referred to in those subsections as respectsa person who has jointly contracted with the debtor or is jointly liablewith the debtor to the creditor and that other person may sue or be 15sued in respect of the contract without joining the debtor.

(7) Subsection (6) does not apply where a Debt SettlementArrangement is also in effect as respects the other person.

(8) In reckoning any period of time for the purpose of any applic-able limitation period in relation to any proceedings or process to 20which this section applies (including any limitation period under theStatute of Limitations 1957), the period in which the Debt SettlementArrangement is in effect shall be disregarded.

(9) The period for which any judgment against the debtor inrelation to a debt which is the subject of a Debt Settlement Arrange- 25ment has effect (whether under statute or rule of court) shall, subjectto the provisions of this Act be extended by the period that the DebtSettlement Arrangement is in effect.

(10) The Deeds of Arrangement Act 1887 does not apply to aDebt Settlement Arrangement. 30

(11) In this section, “specified debt” means a debt that is specifiedin a Debt Settlement Arrangement as being subject to thatArrangement.

75.—(1) Subject to the provisions of this section, a Debt Settle-ment Arrangement shall operate according to the terms of that 35Arrangement and a debtor or creditor who is party to that Arrange-ment shall perform his or her obligations in accordance with itsterms.

(2) Unless otherwise provided by the Debt Settlement Arrange-ment, payments to be made to creditors under the terms of the 40Arrangement shall be made by the debtor through the personalinsolvency practitioner concerned.

(3) The personal insolvency practitioner shall transmit paymentsreceived to each of the creditors in the agreed proportion on atimely basis. 45

(4) The personal insolvency practitioner shall maintain regularcontact with the debtor and request such reports and conduct suchreviews as may be required, but such review shall in any event becarried out at least once in every period of 12 months.

68

(5) The personal insolvency practitioner shall monitor implemen-tation of the Arrangement and where the debtor has or appearslikely to default in his or her obligations under the Arrangement,discuss the matter with the debtor.

(6) Where the circumstances of the debtor have changed in a5material respect the personal insolvency practitioner shall provideinformation to the debtor regarding his or her right or obligation toinitiate an application to vary the Arrangement in accordance withsection 77.

(7) Where the circumstances of a debtor have changed to such an10extent that a variation in the terms of an Arrangement is appro-priate, the personal insolvency practitioner shall take the necessarysteps to initiate a variation of the Arrangement under section 77.

(8) The personal insolvency practitioner shall deal with the prop-erty of the debtor in accordance with the Debt Settlement15Arrangement.

(9) The personal insolvency practitioner shall respond in a timelymanner to requests for information regarding the operation of theArrangement from—

(a) the Insolvency Service,20

(b) the debtor, and

(c) the creditors.

(10) The personal insolvency practitioner shall maintain completeand accurate records of account of the moneys received from thedebtor and the moneys disbursed to the creditors and such moneys25shall while in the possession and control of the personal insolvencypractitioner be maintained in an account in the State with a bankauthorised to carry on business in the State, which account is usedsolely for the purposes of receiving payments from the debtor andtransmitting such payments to creditors (after the deduction of any30fees, costs and outlays payable to the personal insolvency prac-titioner permitted to be made).

76.—(1) A debtor who participates in any process under thisChapter is under an obligation to act in good faith, and in his or herdealings with the personal insolvency practitioner concerned to make35full disclosure to that practitioner of all of his or her assets, incomeand liabilities and of all other circumstances that are reasonablylikely to have a bearing on the ability of the debtor to make pay-ments to his or her creditors.

(2) A debtor who participates in any part of the process of apply-40ing for or operating a Debt Settlement Arrangement shall co-operatefully in the process, and in particular comply with any reasonablerequest from the personal insolvency practitioner to provide assist-ance, documents and information necessary for the application ofthe process to the debtor’s case or the carrying out of the personal45insolvency practitioner’s functions, including any debt, tax, employ-ment, business, social welfare or other financial records.

(3) A debtor in respect of whom a Debt Settlement Arrangementis in effect is under an obligation to inform the personal insolvencypractitioner as soon as reasonably practicable of any material change50in the debtor’s circumstances, particularly an increase or decrease in

69

General duties andobligations ofdebtor arising underChapter 3.

Variation of a DebtSettlementArrangement.

the level of the debtor’s assets, liabilities or income, which wouldaffect the debtor’s ability to make repayments under the Debt Settle-ment Arrangement.

(4) A debtor in respect of whom a Debt Settlement Arrangementis in effect shall not, either alone or with any other person, obtain 5credit in an amount of more than €650 from any person withoutinforming that person that he or she is subject to a Debt Settle-ment Arrangement.

(5) A debtor in respect of whom a Debt Settlement Arrangementis in effect shall not transfer, lease, grant security over, or otherwise 10dispose of any interest in property above a prescribed value other-wise than in accordance with the terms of the Debt SettlementArrangement.

(6) A debtor shall inform the personal insolvency practitioner assoon as reasonably practicable after becoming aware of any inaccur- 15acy or omission in the debtor’s statement of affairs based on thePrescribed Financial Statement.

(7) A debtor who participates in a Debt Settlement Arrangementshall not pay to creditors any additional payments separate to theDebt Settlement Arrangement in respect of debts covered in the 20Debt Settlement Arrangement.

77.—(1) Unless its terms provide otherwise, a Debt SettlementArrangement may be varied in accordance with this section.

(2) Where it appears to the personal insolvency practitioner con-cerned that there has been a material change in the debtor’s circum- 25stances which would affect his or her ability to make repaymentsunder the Debt Settlement Arrangement, the personal insolvencypractitioner (whether on his or her own initiative or at the requestof a creditor) may call a meeting of creditors to be held in accordancewith this section. 30

(3) When calling a creditors’ meeting to be held under thissection, the personal insolvency practitioner shall:

(a) give creditors at least 14 days’ written notice of the meet-ing and the date on which, and the time and place atwhich, the meeting will be held; 35

(b) send, along with the notice referred to in paragraph (a), awritten proposal for the variation of the Debt Settle-ment Arrangement;

(c) lodge a copy of the notice referred to in paragraph (a)and the proposal referred to in paragraph (b) with the 40Insolvency Service.

(4) A creditors’ meeting under this section shall be conducted inaccordance with regulations under section 69.

(5) Subject to subsection (6), creditors, at a creditors’ meetingunder this section, shall vote, in accordance with section 68— 45

(a) in favour of the approval of the proposal for the vari-ation, or

(b) against the approval of the proposal for the variation.

70

(6) For the purposes of subsection (5), the value of a creditor’svote at the meeting shall be calculated by reference to the value ofthe creditor’s debts on the date on which the vote takes place.

(7) Where the variation of a Debt Settlement Arrangement isapproved under subsection (5), the personal insolvency practitioner5shall as soon as practicable notify the Insolvency Service and eachcreditor concerned of the fact, and enclose with that notification acopy of the Debt Settlement Arrangement as varied.

(8) On receipt of a notification under subsection (7), the Insol-vency Service shall record the variation in the Register of Debt10Settlement Arrangements.

(9) A variation to a Debt Settlement Arrangement shall takeeffect immediately upon its being recorded under subsection (8), andshall remain in effect until the Debt Settlement Arrangement, asvaried—15

(a) is completed in accordance with its terms,

(b) is terminated in accordance with this Chapter, or

(c) is further varied in accordance with this section.

(10) A variation to a Debt Settlement Arrangement shall, whileit is in effect, be binding upon the debtor and each creditor who was20entitled to vote at the meeting held under this section, regardless ofwhether such creditor voted to approve that variation.

(11) References in this Chapter to a Debt Settlement Arrange-ment include references to such an Arrangement as varied in accord-ance with this section.25

78.—(1) A Debt Settlement Arrangement may be terminated ata meeting of creditors held in accordance with this section.

(2) The personal insolvency practitioner (whether on his or herown initiative or at the request of a creditor) may call a meeting ofcreditors to be held in accordance with this section where it reason-30ably appears to that personal insolvency practitioner that—

(a) there has been a material change in the debtor’s circum-stances which would affect his or her ability to makerepayments under the Debt Settlement Arrangement, or

(b) the debtor participated in the Debt Settlement Arrange-35ment process in the knowledge that he or she did notsatisfy the eligibility criteria to make a proposal for aDebt Settlement Arrangement specified in section 53.

(3) When calling a creditors’ meeting to be held under thissection, the personal insolvency practitioner shall:40

(a) give creditors at least 14 days’ written notice of the meet-ing and the date on which, and the time and place atwhich, the meeting will be held;

(b) lodge a copy of the notice referred to in paragraph (a)with the Insolvency Service.45

71

Termination ofDebt SettlementArrangement bymeeting ofcreditors.

Application toappropriate court tohave DebtSettlementArrangementterminated.

(4) A creditors’ meeting under this section shall be conducted inaccordance with regulations under section 69.

(5) Subject to subsection (6), creditors, at a meeting under thissection, shall vote, in accordance with section 68—

(a) in favour of the termination of the Debt Settlement 5Arrangement, or

(b) against the termination of the Debt SettlementArrangement.

(6) For the purposes of subsection (5), the value of a creditor’svote at the meeting shall be calculated by reference to the value of 10the creditor’s debts on the date on which the vote takes place.

(7) Where the termination of a Debt Settlement Arrangement isapproved under subsection (5), the personal insolvency practitionershould as soon as practicable notify the Insolvency Service and eachcreditor concerned of the fact. 15

(8) On receipt of a notification under subsection (7), the Insol-vency Service shall record the termination in the Register of DebtSettlement Arrangements.

(9) The termination of a Debt Settlement Arrangement shall takeeffect immediately upon its being recorded under subsection (8). 20

79.—(1) A creditor or a personal insolvency practitioner may, atany time during the operation of a Debt Settlement Arrangement,apply to the appropriate court to have that Debt SettlementArrangement terminated, and such application shall be limited to thefollowing grounds: 25

(a) a material inaccuracy or omission exists in the debtor’sPrescribed Financial Statement, which causes a materialdetriment to the creditor;

(b) the debtor did not satisfy the eligibility criteria to enterthe Debt Settlement Arrangement process when he or 30she initiated the process;

(c) the debtor did not comply with the duties and obligationsimposed on him or her under the Debt SettlementArrangement process;

(d) the debtor has since the coming into effect of the Debt 35Settlement Arrangement committed an offence underthis Act;

(e) the debtor is in arrears with his or her payments for aperiod of not less than 3 months;

(f) the debtor has failed to carry out any action necessary to 40enable a term of the Debt Settlement Arrangementhave effect;

(g) the debtor has unreasonably refused to consent to a vari-ation of the Debt Settlement Arrangement.

72

(2) For the purposes of subsection (1)(e), a debtor is in arrearswith his or her payments for a period of not less than 3 monthswhere—

(a) at the beginning of the 3 month period ending immediatelybefore the day on which the application was made, one5or more than one payment in respect of the debts becamedue and payable by the debtor under the Debt SettlementArrangement, and

(b) throughout that 3 month period, the debtor was in arrearsin respect of any or all of those payments.10

(3) On hearing an application under subsection (1), the appro-priate court may—

(a) dismiss the application,

(b) terminate the Debt Settlement Arrangement, or

(c) order the personal insolvency practitioner to propose the15variation of the Arrangement in accordance with section77.

80.—(1) Where the debtor is in arrears with his or her paymentsfor a period of 6 months the Debt Settlement Arrangement shallbe deemed to have failed and shall terminate where the personal20insolvency practitioner notifies the Insolvency Service of suchdefault.

(2) Where the Insolvency Service receives a notification of defaultreferred to in subsection (1), it shall record the failure of the DebtSettlement Arrangement in the Register of Debt Settlement25Arrangements.

(3) For the purposes of subsection (1), a debtor is in arrears withhis or her payments for a period of 6 months on a given date if—

(a) at the beginning of the 6 month period ending immediatelybefore that date, one or more than one payment in30respect of a debt became due and payable by the debtorunder the Debt Settlement Arrangement, and

(b) at no time during that 6 month period were any obligationsin respect of those payments discharged.

81.—(1) Subject to subsection (2), where a Debt Settlement35Arrangement has been deemed to come to an end, has failed or hasterminated under this Chapter, the debtor shall thereupon be liablein full for all debts covered by the Debt Settlement Arrangement(including any arrears, charges and interest that have accrued duringthe continuance of the Debt Settlement Arrangement but excluding40any amounts paid in respect of those debts during the continuanceof the Debt Settlement Arrangement), unless:

(a) the terms of the Debt Settlement Arrangement provideotherwise;

(b) the appropriate court has made an order otherwise.45

73

Debt SettlementArrangementdeemed to havefailed after 6 montharrears default.

Effect of prematuretermination of DebtSettlementArrangement ondebts.

Deemed act ofbankruptcy ontermination of DebtSettlementArrangement.

Successfulcompletion of DebtSettlementArrangement.

Grounds ofchallenge bycreditor to DebtSettlementArrangement.

(2) Subsection (1) has effect without prejudice to the validity ofany act done or property disposed of in accordance with the DebtSettlement Arrangement.

82.—Where a Debt Settlement Arrangement is terminated undersection 78 or 79, or is deemed to have terminated under section 80, 5the debtor concerned shall be deemed to have committed an actof bankruptcy within the meaning of section 7 of the BankruptcyAct 1988.

83.—(1) Upon the expiration of the Debt Settlement Arrange-ment, and where the debtor has complied with his or her obligations 10under the Debt Settlement Arrangement, the personal insolvencypractitioner shall notify the debtor, creditors and the InsolvencyService.

(2) Where the debtor has complied with his or her obligationsunder the Debt Settlement Arrangement, the debtor stands dis- 15charged from the debts specified in the Debt SettlementArrangement.

(3) Where the Insolvency Service receives the notice referred toin subsection (1), it shall record the successful completion of the DebtSettlement Arrangement in the Register of Debt Settlement 20Arrangements.

84.—(1) The grounds on which a Debt Settlement Arrangementmay be challenged by a creditor under section 72 are limited to thefollowing matters:

(a) that the debtor has by his or her conduct within the 2 years 25prior to the issue of the protective certificate undersection 56 arranged his or her financial affairs primarilywith a view to being or becoming eligible to apply for aDebt Settlement Arrangement or a Personal InsolvencyArrangement; 30

(b) the procedural requirements specified in this Act werenot followed;

(c) a material inaccuracy or omission exists in the debtor’sstatement of affairs (based on the Prescribed FinancialStatement) which causes a material detriment to the 35creditor;

(d) the debtor, when the Debt Settlement Arrangement wasproposed, did not satisfy the eligibility criteria specifiedin section 53;

(e) the Debt Settlement Arrangement unfairly prejudices the 40interests of a creditor;

(f) the debtor has committed an offence under this Act;

(g) the debtor had entered into a transaction with a person atan undervalue within the meaning of subsection (2)within the preceding 3 years that has materially contrib- 45uted to the debtor’s inability to pay his or her debts(other than any debts due to the person with whom thedebtor entered the transaction at an undervalue);

74

(h) the debtor had given a preference to a person within themeaning of subsection (3) within the preceding 3 yearsthat had the effect of substantially reducing the sum avail-able for distribution to the creditors (other than any debtsdue to the person who received the preference).5

(2) For the purposes of subsection (1)(g), a debtor enters into atransaction with a person at an undervalue if—

(a) he or she makes a gift to that person or he or she otherwiseenters into a transaction with that person on terms thatprovide for him or her to receive no consideration; or10

(b) he or she enters into a transaction with that person andthe value of which, in money or money’s worth, is signifi-cantly greater than the value, in money or money’s worth,of the consideration provided by the person.

(3) For the purposes of subsection (1)(h), a debtor gives a prefer-15ence to a person if—

(a) that person is one of the debtor’s creditors to whom aqualifying debt is owed or is a surety or guarantor for anysuch debt, and

(b) the debtor does anything (including the grant of security)20or suffers anything to be done which (in either case) hasthe effect of putting that person into a position which, inthe event that a Debt Settlement Arrangement is madein relation to the debtor, will be better than the positionhe or she would have been in if that thing had not been25done.

Chapter 4

Personal Insolvency Arrangements

85.—(1) The Minister shall, in consultation with the Minister forFinance, not later than 5 years after the commencement of this Chap-30ter, commence a review of its operation.

(2) A review under subsection (1) shall be completed not laterthan one year after its commencement.

(3) Having completed the review the Minister in consultation withthe Minister for Finance shall prepare a report setting out the assess-35ment arrived at and the reason for that assessment.

(4) The Minister shall lay a copy of a report prepared under sub-section (3) before each House of the Oireachtas as soon as reason-ably practicable after it has been completed.

86.—(1) Subject to the provisions of this Act, a debtor who satis-40fies the eligibility criteria specified in section 88 may make a proposalfor a Personal Insolvency Arrangement with one or more of his orher creditors in respect of the payment, satisfaction or restructuringof his or her debts.

(2) A proposal for a Personal Insolvency Arrangement shall be45made on behalf of a debtor by a personal insolvency practitioner inaccordance with the provisions of this Part.

75

Review ofoperation ofChapter 4.

Personal InsolvencyArrangement:General Conditions.

Personal InsolvencyArrangementpermitted onceonly.

Eligibility criteriafor a PersonalInsolvencyArrangement.

(3) Where two or more debtors are jointly party to all of the debtsto be covered by a Personal Insolvency Arrangement and each ofthose debtors satisfies the eligibility criteria specified in section 88,those debtors may jointly propose a Personal Insolvency Arrange-ment and, unless otherwise specified, references in this Part to the 5“debtor” shall be construed as meaning such joint debtors.

(4) Without prejudice to subsection (3), a Personal InsolvencyArrangement may be proposed by a debtor on the basis that it willbe administered in common by a personal insolvency practitionerwith one or more other Personal Insolvency Arrangements provided 10that, in the opinion of the personal insolvency practitioner:

(a) the Personal Insolvency Arrangements can reasonably beadministered in common because of the financialrelationship of the debtors concerned;

(b) the terms of each of the Personal Insolvency Arrange- 15ments to be administered in common specify in sufficientdetail how such administration will operate, including—

(i) the treatment of joint and individual assets and thetreatment of joint and individual debts;

(ii) whether the approval of one Personal Insolvency 20Arrangement is to be contingent on the approval ofany other Personal Insolvency Arrangement;

(iii) the effect of the failure or early termination of onePersonal Insolvency Arrangement on any other Per-sonal Insolvency Arrangement, in particular, as to 25whether it is a condition of each Personal InsolvencyArrangement that for it to be considered as havingbeen successfully completed other Personal Insol-vency Arrangements are also required to be success-fully completed; and 30

(iv) where a joint payment is to be received from two ormore debtors, how that payment is to beapportioned between the creditors under each Per-sonal Insolvency Arrangement.

(5) The administration of a Personal Insolvency Arrangement in 35common with one or more other Personal Insolvency Arrangementsin accordance with subsection (4) shall be without prejudice to theapplicability of the remainder of this Part to each such PersonalInsolvency Arrangement.

87.—A debtor may enter into a Personal Insolvency Arrangement 40once only.

88.—(1) Subject to the provisions of this section and this Chapter,a debtor shall not be eligible to make a proposal for a Personal Insol-vency Arrangement unless he or she satisfies the following criteria—

(a) subject to subsection (5), that the aggregate of the debts 45of the debtor which are secured debts is less than€3,000,000;

(b) that the debtor—

76

(i) is domiciled in the State, or

(ii) within one year before the date of the application fora protective certificate has ordinarily—

(I) resided in the State, or

(II) had a place of business in the State;5

(c) that at least one of the creditors of the debtor is a securedcreditor holding security over an interest in property ofthe debtor situate in the State (whether the interest in theproperty relates to real property or personal property);

(d) that the debtor is insolvent;10

(e) that the debtor has completed a Prescribed FinancialStatement and has made a statutory declaration con-firming that the statement is a complete and accuratestatement of the debtor’s assets, liabilities, income andexpenditure;15

(f) that the personal insolvency practitioner has issued a cer-tificate to the effect that, having considered the Pre-scribed Financial Statement completed by the debtor andhaving considered the matters referred to in subsection(2), it is his or her opinion there is no likelihood of the20debtor becoming solvent within the period of 5 yearscommencing on the date of the making of the declaration;

(g) that the debtor has made a statutory declaration declaringthat he or she has co-operated for a period of at least 6months with his or her creditors who are secured credi-25tors as respects the debtor’s principal private residence inaccordance with any process relating to mortgage arrearsoperated by the secured creditors concerned which hasbeen approved or required by the Central Bank ofIreland and which process relates to the secured debt30concerned and that notwithstanding such co-operationthe debtor has not been able to agree an alternativerepayment arrangement with the secured creditor con-cerned, or that the secured creditor has confirmed to thedebtor in writing the unwillingness of that secured credi-35tor to enter into an alternative repayment arrangement;

(h) that the debtor is not—

(i) an undischarged bankrupt,

(ii) a discharged bankrupt subject to a bankruptcy pay-ment order,40

(iii) a person who is a specified debtor as respects a DebtRelief Notice which is in effect,

(iv) a person who, as a debtor, is subject to a Debt Settle-ment Arrangement which is in force, or

(v) a person who, as a debtor, is subject to an arrange-45ment under the control of the court under Part IVof the Bankruptcy Act 1988;

(i) that the debtor has not—

77

Application forprotectivecertificate.

(i) been the subject of a protective certificate issuedunder section 91 less than 12 months prior to the dateof the application for a protective certificate,

(ii) had his or her debts discharged pursuant to a finalDebt Relief Notice less than 3 years prior to the date 5of the application for a protective certificate,

(iii) had his or her debts discharged pursuant to a DebtSettlement Arrangement less than 5 years prior tothe date of the application for a protective certifi-cate, or 10

(iv) been discharged from bankruptcy less than 5 yearsprior to the date of the application for a protectivecertificate.

(2) The matters to be taken into account for the purposes of sub-section (1)(f) are— 15

(a) the amount of the current liabilities of the debtor;

(b) the amount of the contingent and prospective liabilities ofthe debtor and (insofar as is ascertainable) the times atwhich such liabilities will become due for payment; and

(c) the value of the current and prospective assets and the 20amount of the income of the debtor.

(3) The criterion referred to in subsection (1)(g) shall not applywhere the relevant personal insolvency practitioner confirms in writ-ing that, having regard to the financial circumstances of the debtoras disclosed in the Prescribed Financial Statement completed by the 25debtor and the factors referred to in subsection (2), it is the beliefof that practitioner that if the debtor were to have entered into analternative repayment arrangement with the secured creditor con-cerned of a type provided for in any process relating to mortgagearrears operated by that secured creditor (being a process approved 30or required by the Central Bank of Ireland) the debtor would beunlikely to become solvent within the period of 5 years commencingon the date of the personal insolvency practitioner giving that con-firmation.

(4) The criterion specified in subsection (1)(h) shall not apply 35where the debtor has, on notice to the Insolvency Service, made anapplication to the appropriate court and the court has made an orderstating that it is satisfied that the current insolvency of the debtorarises by reason of exceptional circumstances or other factors whichare substantially outside the control of the debtor and that it would 40be just to permit the debtor to make a proposal for a Personal Insol-vency Arrangement.

(5) Where all of the creditors who are secured creditors consentin writing the limit of €3,000,000 referred to in subsection (1)(a) shallnot apply. 45

89.—(1) Where a personal insolvency practitioner has beeninstructed pursuant to section 49 to make a proposal for a PersonalInsolvency Arrangement, the personal insolvency practitioner shallnotify the Insolvency Service of the debtor’s intention to make aproposal for a Personal Insolvency Arrangement and apply on behalf 50of the debtor for a protective certificate.

78

(2) The application referred to in subsection (1) shall be in suchform as may be prescribed by the Insolvency Service and shall beaccompanied by the following documents—

(a) the statement issued by the personal insolvency prac-titioner pursuant to section 50;5

(b) a document signed by the debtor confirming that he or shesatisfies the eligibility criteria specified in section 88;

(c) the statutory declaration of the debtor referred to insection 88(1)(g);

(d) the Prescribed Financial Statement;10

(e) a schedule of the debtor’s debts and creditors concerned,stating in relation to each such creditor—


(ii) whether, as respects the debt concerned, the creditoris a secured creditor and, if so, the nature of the15security;

(f) a consent in writing signed by the debtor confirming thathe or she consents to disclosure and processing of his orher personal data to and by the Insolvency Service andcreditors to such extent as may be necessary in connec-20tion with the Personal Insolvency Arrangement pro-cedure provided for in this Chapter; and

(g) confirmation by the debtor that the Insolvency Servicemay carry out any prescribed verification checks inaccordance with section 90.25

90.—(1) In its consideration of an application under section 89 theInsolvency Service shall be entitled to request any further infor-mation it requires from the debtor or personal insolvency prac-titioner and to defer further consideration of the application untilsuch information is furnished to it.30

(2) Where a debtor or personal insolvency practitioner fails toprovide the information requested by the Insolvency Service undersubsection (1) within 14 days or such longer period as the InsolvencyService may permit the application shall be deemed to be withdrawn.

(3) Subject to subsection (4), in considering the application for a35protective certificate, the Insolvency Service shall make such enquir-ies as it considers necessary to satisfy itself—

(a) that the personal insolvency practitioner is a personentitled to act as a personal insolvency practitioner;

(b) having regard to the documents which are required to40accompany the application for a protective certificate—

(i) that the debtor satisfies the eligibility criteria for aPersonal Insolvency Arrangement specified insection 88; and

79

Consideration byInsolvency Serviceof application forprotectivecertificate.

Referral ofapplication toappropriate courtfor issue ofprotectivecertificate.

(ii) the application does not appear to be frivolous or anattempt to frustrate the efforts of creditors torecover debts due to them.

(4) Subject to subsections (5) to (7), for the purposes of subsection(3) the Insolvency Service shall be entitled to presume that the 5debtor satisfies the eligibility criteria for a Personal InsolvencyArrangement specified in section 88 if the documents required tobe lodged with the Insolvency Service have been so lodged and theInsolvency Service has no reason to believe that the information sup-plied in or in support of the application for a protective certificate is 10incomplete or inaccurate.

(5) The Insolvency Service may make such enquiries as it con-siders necessary to verify the completeness or accuracy of any matterreferred to in the Prescribed Financial Statement of the debtor or inrelation to the assets, liabilities, income or expenditure of the debtor. 15

(6) Without prejudice to the generality of subsection (5) thematters in respect of which the Insolvency Service may make anenquiry include the following—

(a) particulars relating to bank accounts, securities or otheraccounts held, solely or jointly, by or for the benefit of 20the debtor with financial institutions or financial inter-mediaries in the State or abroad;


(c) particulars of the liabilities of the debtor; 25


(e) payments received by the debtor from the Department ofSocial Protection or other Departments of State or otherState bodies or agencies and whether or not such pay-ments are made as agent of any other person; 30

(f) taxes or charges imposed by or under statute paid or owedby the debtor, whether within or outside the State andrefunds in respect of such taxes and charges which are ormay become due to the debtor.

(7) Nothing in this section shall be construed as requiring the 35Insolvency Service to make an enquiry in any case.

(8) A person who receives an enquiry from the Insolvency Servicepursuant to this section shall be under a duty to furnish the infor-mation requested as soon as reasonably practicable.

(9) Notwithstanding anything contained in any enactment, for the 40purposes of the performance of the functions of the InsolvencyService under this Act information held by a Department of State,the Revenue Commissioners, a local authority or any other Statebody or agency in relation to a debtor may be furnished to the Insol-vency Service. 45

91.—(1) Where it is satisfied that the application is in order, theInsolvency Service shall issue a certificate to that effect, furnish thatcertificate together with a copy of the application and supporting

80

documentation to the appropriate court and notify the personalinsolvency practitioner to that effect.

(2) Where the appropriate court receives the application for aprotective certificate and accompanying documentation pursuant tosubsection (1) the appropriate court shall review the application and5documentation and if satisfied that the eligibility criteria specified insection 88 have been satisfied and the other relevant requirementsrelating to an application for the issue of a protective certificate havebeen met shall issue a protective certificate.

(3) Subject to subsections (4) and (5), the protective certificate10shall be in force for a period of 70 days from the date of its issue.

(4) Where a protective certificate has been issued pursuant to sub-section (2), the appropriate court may on application to that courtextend the period of the protective certificate by an additional periodnot exceeding 40 days where—15

(a) the debtor and the personal insolvency practitioner satisfythe court that they have acted in good faith and withreasonable expedition, and

(b) the court is satisfied that it is likely that a proposal for aPersonal Insolvency Arrangement which is likely—20

(i) to be accepted by the creditors, and

(ii) to be successfully completed by the debtor,

will be made if the extension is granted.

(5) Where a protective certificate has been issued pursuant to sub-section (2) or extended under subsection (4), the appropriate court25may on application to that court extend the period of the protectivecertificate by a further additional period not exceeding 40 dayswhere—

(a) the personal insolvency practitioner has been appointed inaccordance with section 46(5), and30

(b) the court is satisfied that the extension is necessary toenable the personal insolvency practitioner so appointedto perform his or her functions under this Chapter.

(6) The period of a protective certificate may be extended undersubsection (5) once only.35

(7) The registrar of the appropriate court shall notify the Insol-vency Service and the personal insolvency practitioner concernedwhere the court issues or extends a protective certificate under thissection.

(8) The Insolvency Service shall enter details of the name and40address of the debtor, the date of issue of the protective certificate,or the extension of the protective certificate, together with such otherdetails as may be prescribed under section 128(3)(b), in the Registerof Protective Certificates.

(9) In each case where a protective certificate has been issued and45the personal insolvency practitioner has been notified of such issue,that practitioner shall notify each of the creditors specified in the

81

Effect of issue ofprotectivecertificate.

schedule of creditors of the fact of such issue and that the debtorintends to make a proposal for a Personal Insolvency Arrangement.

(10) A notification referred to in subsection (9) shall contain astatement of—

(a) the effect of the protective certificate under section 92, and 5

(b) the right of the creditor under section 93 to appeal theissue of the protective certificate.

(11) Notwithstanding the provisions of subsections (3), (4) and(5), a protective certificate that is in force on the date on whicha proposal for a Personal Insolvency Arrangement is approved in 10accordance with section 106 shall continue in force until it ceases tohave effect in accordance with section 111.

(12) A protective certificate issued under this section shall—

(a) specify—

(i) the name of the debtor who is the subject of it, 15

(ii) the debts (“specified debts”) which are subject to it,and

(iii) the name of each creditor to whom a specified debtis owed,

and 20

(b) contain such other information as may be prescribed.

(13) In considering an application under this section the appro-priate court shall be entitled to treat a certificate issued by the Insol-vency Service under subsection (1) as evidence of the matters certi-fied therein. 25

92.—(1) Subject to subsection (4) a creditor to whom notice of theissue of the protective certificate has been given shall not, while theprotective certificate remains in force—

(a) initiate any legal proceedings in relation to a debt whichis a specified debt; 30

(b) take any step to prosecute legal proceedings alreadyinitiated;

(c) take any step to secure or recover payment of a secureddebt;

(d) execute or enforce a judgment held against the debtor in 35respect of a specified debt;

(e) take any step to enforce security held by the creditor inconnection with a specified debt;

(f) take any step to recover goods in the possession or custodyof the debtor (whether or not title to the goods is vested 40in the creditor);

82

(g) contact the debtor regarding payment of the debt other-wise than at the request of the debtor; or

(h) in relation to an agreement with the debtor, including asecurity agreement, by reason only that the debtor isinsolvent or that the protective certificate has been5issued—

(i) terminate or amend that agreement, or


(2) Where the creditor has been notified of the granting of the10protective certificate, whilst the protective certificate remains inforce, no bankruptcy petition relating to the debtor—

(a) may be presented by a creditor,

(b) in a case where the petition has been presented by a credi-tor, may be proceeded with.15

(3) Without prejudice to subsections (1) and (2), no other pro-ceedings, no enforcement of security and no execution or other legalprocess, may be commenced or continued against the debtor or hisor her property, except with the leave of the court and subject to anyorder the court may make to stay such proceedings, enforcement or20execution for such period as the court deems appropriate pendingthe outcome of attempts to reach a Personal InsolvencyArrangement.

(4) Notwithstanding subsection (1), the fact that a protective cer-tificate is in force in relation to a debtor under this Chapter shall not25operate to prevent a creditor taking the actions referred to in subsec-tion (1) as respects another person who has guaranteed the debts ofthe debtor to which the protective certificate relates.

(5) Notwithstanding subsection (1), the fact that a protective cer-tificate is in force in relation to a debtor under this Chapter shall not30operate to prevent a creditor taking the actions referred to in subsec-tion (3) as respects a person who has jointly contracted with thedebtor or is jointly liable with the debtor to the creditor and thatother person may sue or be sued in respect of the contract withoutjoining the debtor.35

(6) Subsections (4) and (5) do not apply where a protective certifi-cate is also in force as respects the other person.

(7) In reckoning any period of time for the purpose of any applic-able limitation period in relation to any proceedings or process towhich subsection (1) or (3) applies (including any limitation period40under the Statute of Limitations 1957), the period in which the pro-tective certificate concerned is in force shall be disregarded.

(8) Subsections (1), (2) and (3) shall not apply to debts or liabilit-ies referred to in section 95(2)(e).

93.—(1) Where a creditor is aggrieved by the issue of a protective45certificate that creditor may within 14 days of the giving of notice ofthe issue of the protective certificate to that creditor apply to theappropriate court for an order directing that the protective certificateshall not apply to that creditor.

83

Right of appeal asrespects protectivecertificate.

Actions to be takenby personalinsolvencypractitionerfollowing issue ofprotectivecertificate.

(2) A creditor who brings an application under subsection (1) shallgive notice to the Insolvency Service and the relevant personal insol-vency practitioner and to such other persons as the court may directof that fact, and the application shall be made in such form as isprovided for in rules of court. 5

(3) In determining an application under this section the court shallnot make the order directing that the protective certificate shall notapply to that creditor unless it is satisfied that—

(a) failing to give such direction would cause irreparable lossto the creditor which would not otherwise occur, and 10

(b) no other creditor to whom notice of the protective certifi-cate has been given would be unfairly prejudiced.

(4) In determining the costs of the application the court shall haveregard to the objective that all the parties to such an applicationshould bear their own costs unless to do so would cause a serious 15injustice to the parties to the application.

(5) Where the court makes an order under this section the courtshall, unless it considers that there are good reasons not to do so,direct the creditor to hold any moneys or other assets recovered intrust for the benefit of the other creditors to whom the protective 20certificate applies, pending a further direction on the matter by thecourt.


94.—(1) Where a protective certificate has issued, the personal 25insolvency practitioner shall, as soon as practicable thereafter—

(a) give written notice to the creditors that the personal insol-vency practitioner has been appointed by the debtor forthe purpose of making a proposal for a Personal Insol-vency Arrangement and invite the creditors concerned 30to make submissions to him or her regarding the debtsconcerned and the manner in which the debts might bedealt with as part of a Personal Insolvency Arrangement,and such notice shall be accompanied by the debtor’scompleted Prescribed Financial Statement; 35

(b) consider any submissions made by creditors regarding thedebts and the manner in which the debts might be dealtwith as part of a Personal Insolvency Arrangement,including—

(i) any submission made by a creditor with respect to 40previous or existing offers of arrangements made bythe creditor to or with the debtor, and

(ii) any submission made by a secured creditor in accord-ance with section 98.

(2) (a) A personal insolvency practitioner may in any case request 45a creditor to file a proof of debt and the debt shall beproved in the same manner as a debt of a bankrupt isproved under the Bankruptcy Act 1988 and subject tosubsection (3) paragraphs 1 to 22 of the First Schedule of

84

that Act shall apply with all necessary modifications tothe proof of such debts.

(b) Subject to paragraph (c), a creditor who does not complywith a request under paragraph (a), is not entitled to—

(i) vote at a creditors’ meeting, or5

(ii) share in any distribution that may be made under thePersonal Insolvency Arrangement concerned.

(c) Where a creditor to whom paragraph (b) applies files aproof of debt in the manner specified in paragraph (a),paragraph (b) shall cease to apply, but without prejudice10to anything done while that paragraph applied.

(3) In applying the First Schedule of the Bankruptcy Act 1988 toproof of debts under this section—

(a) a reference in that Schedule to the Court and the OfficialAssignee shall be read as a reference to the personal15insolvency practitioner, and

(b) a reference to a bankrupt shall be read as a reference tothe debtor to whom the proposal for a Personal Insol-vency Arrangement relates.

95.—(1) Subject to the mandatory requirements referred to in20subsection (2), the terms of a Personal Insolvency Arrangement shallbe those which are agreed to by the debtor and subject to this Chap-ter, approved, by a majority of the debtor’s creditors in accordancewith this Chapter.

(2) The mandatory requirements referred to in subsection (1)25are—

(a) a Personal Insolvency Arrangement shall clearly specifywhich debts are secured debts and which debts areunsecured debts;

(b) the maximum duration of a Personal Insolvency Arrange-30ment shall be 72 months but a Personal InsolvencyArrangement may provide that this period may beextended for a further period of not more than 12 monthsin such circumstances as are specified in the terms of thePersonal Insolvency Arrangement;35

(c) subject to paragraphs (d) and (e), where the debtor per-forms all of his or her obligations specified in a PersonalInsolvency Arrangement he or she shall not stand dis-charged from the secured debts covered by the PersonalInsolvency Arrangement except to the extent provided40for under the terms of the Personal InsolvencyArrangement;

(d) a Personal Insolvency Arrangement shall not release thedebtor from any of the following debts unless the pro-posed Personal Insolvency Arrangement explicitly pro-45vides for the compromise of that debt or liability and the

85

Mandatoryrequirementsconcerning PersonalInsolvencyArrangement.

relevant creditor for any of the following debts or liabilit-ies has agreed in writing to accept the compromise con-tained in the Personal Insolvency Arrangement (insofaras it applies to that creditor’s debt)—

(i) any liability arising out of a domestic support order, 5

(ii) any liability arising out of any tax, duty, levy or othercharge of a similar nature owed or payable to theState,

(iii) any amount payable by the debtor under the LocalGovernment (Charges) Act 2009, 10

(iv) any amount payable by the debtor under the LocalGovernment (Household Charge) Act 2011,

(v) rates due to the local authority (within the meaningof the Local Government Act 2001),

(vi) any debt or liability in respect of moneys advanced to 15the debtor by the Health Service Executive underthe Nursing Homes Support Scheme Act 2009,

(vii) any debt due by the debtor to any owners’ manage-ment company in respect of annual service chargesunder section 18 of the Multi-Unit Developments 20Act 2011 or contributions due under section 19 ofthat Act,

(viii) any liability arising out of damages awarded by acourt (or another competent authority) in respect ofpersonal injuries or wrongful death arising from the 25tort of the debtor,

(ix) any debt or liability arising from a loan (or for-bearance of a loan) obtained through fraud, misap-propriation, embezzlement or fraudulent breach oftrust; 30

(e) a Personal Insolvency Arrangement shall not release thedebtor from any debt or liability arising by virtue of acourt order made under the Proceeds of Crime Acts 1996and 2005 or by virtue of a fine ordered to be paid by acourt in respect of a criminal offence; 35

(f) a Personal Insolvency Arrangement shall not require thedebtor to sell any of his or her assets that are reasonablynecessary for the debtor’s employment, business orvocation unless the debtor explicitly consents to suchsale; 40

(g) a Personal Insolvency Arrangement shall not contain anyterms which would require the debtor to make paymentsof such an amount that the debtor would not havesufficient income to maintain a reasonable standard ofliving for the debtor and his or her dependants; 45

(h) a Personal Insolvency Arrangement shall—

(i) make provision for the costs and outlays of the per-sonal insolvency practitioner which relate to thematters referred to in sections 45 to 50 and this

86

Chapter and to the ongoing administration of theArrangement,

(ii) indicate the likely amount of the fees, costs and out-lays to be incurred or where this is not practicablethe basis on which those fees, costs and outlays will5be calculated, and

(iii) specify the person or persons by whom those fees,costs and charges are payable and the manner inwhich they have been or are to be paid;

(i) a Personal Insolvency Arrangement shall make provision10for the manner in which the debtor’s debts are to betreated in the event of the death or mental incapacity ofthe debtor;

(j) a Personal Insolvency Arrangement shall not require thatthe debtor dispose of his or her interest in the debtor’s15principal private residence or to cease to occupy suchresidence unless the provisions of section 100(3) apply;

(k) a Personal Insolvency Arrangement shall provide that thecircumstances of the debtor be reviewed by the personalinsolvency practitioner at regular intervals which are20specified in the Personal Insolvency Arrangement (whichintervals are not greater than 12 months) during the cur-rency of the Personal Insolvency Arrangement;

(l) a Personal Insolvency Arrangement shall provide that thereview referred to in paragraph (k) shall include the25preparation by the debtor of a new Prescribed FinancialStatement, a copy of which together with a statement bythe personal insolvency practitioner as to whether he orshe considers that statement to be complete and accurate,shall be sent by the personal insolvency practitioner to30each creditor;

(m) subject to sections 98 to 101, a Personal InsolvencyArrangement shall make provision for the manner inwhich security held by a secured creditor is to betreated; and35

(n) the terms of a Personal Insolvency Arrangement shallspecify the circumstances where the personal insolvencypractitioner shall be obliged to propose a variation of thePersonal Insolvency Arrangement in accordance withsection 115.40

(3) The Insolvency Service may publish a Code of Practice provid-ing guidance on any of the matters set out in subsection (2).

(4) With respect to the matters set out in paragraph (g) of subsec-tion (2), and without prejudice to subsection (3), for the purposes of apersonal insolvency practitioner determining whether a debtor would45have sufficient income to maintain a reasonable standard of living forthe debtor and his or her dependants under the Personal InsolvencyArrangement, the personal insolvency practitioner shall have regardto any guidelines on reasonable expenditure and essential income fordebtors published by the Insolvency Service.50

87

Non-exhaustive listof options asrespects paymentsfor inclusion inPersonal InsolvencyArrangement.

Preferential debts inPersonal InsolvencyArrangement.

96.—(1) Subject to the provisions of this Act, a proposal for aPersonal Insolvency Arrangement may incorporate one or more ofthe options in subsection (2) with respect to payments to creditors.

(2) The terms of a proposal for a Personal Insolvency Arrange-ment may include any one or more of the following: 5

(a) a lump sum payment to creditors, whether provided fromthe debtor’s own resources or from the resources ofother persons;

(b) a payment arrangement with creditors;

(c) an agreement by the debtor to transfer some or all of the 10debtor’s property to a person (who may be the personalinsolvency practitioner) to hold the property in trust forthe benefit of the creditors;

(d) a transfer of specified assets of the debtor to creditors gen-erally or to a specified creditor; 15

(e) a sale of specified assets of the debtor by or under thesupervision of the personal insolvency practitioner andthe payment of the proceeds of such sale to creditors; or

(f) in respect of secured debts, subject to sections 98 to 101,an arrangement for the treatment of the security and the 20satisfaction or restructuring of the secured debt.

(3) Unless provision is otherwise made in the Personal InsolvencyArrangement the arrangement shall provide for payments to credi-tors of the same class to be made on a pari passu basis, and whereso otherwise provided the Personal Insolvency Arrangement shall 25specify the reasons for such provision being made.

(4) The payment of moneys or the performance of obligationsprovided for by a Personal Insolvency Arrangement may be securedby a charge given by the debtor or a charge or guarantee given by aperson other than the debtor. 30

(5) Subject to the provisions of this Act the terms of a PersonalInsolvency Arrangement may include provisions relating to pay-ments other than those specified in this section.

97.—(1) Subject to subsection (3), a debt which, if the debtor con-cerned were a bankrupt would be a debt— 35

(a) that by virtue of section 81 of the Bankruptcy Act 1988 isto be paid in priority to all other debts, or

(b) that by virtue of any other statutory provision is to beincluded among such debts,

shall be paid in full by the debtor unless the creditor concerned 40otherwise agrees and provision is so made in the terms of the Per-sonal Insolvency Arrangement and such debt is in this Part referredto as a “preferred debt”, and where those debts are to be paid in fullthe provisions of section 81 of the Bankruptcy Act 1988 shall applywith all necessary modifications. 45

(2) In notifying creditors of the issue of a protective certificatethe personal insolvency practitioner shall indicate that any creditor

88

who considers some or all of his or her debt to be a preferential debtis required to furnish evidence of the circumstances of how that debtor part of that debt is claimed to be a preferential debt within suchreasonable period as may be specified, and that in the absence ofsuch evidence, the proposal for a Personal Insolvency Arrangement5may be prepared on the basis that the debt concerned is not a prefer-ential debt.

(3) Where a creditor fails to satisfy the personal insolvency prac-titioner that his or her debt is a preferential debt the debt shall betreated as not being a preferential debt for the purposes of a Personal10Insolvency Arrangement.

(4) Subsection (1) shall not affect the operation of section 99unless the relevant secured creditors otherwise agree.

98.—(1) Where a secured creditor has been notified by the per-sonal insolvency practitioner that a protective certificate has been15issued in respect of the debtor the secured creditor concerned shallfurnish to the personal insolvency practitioner an estimate, made ingood faith, of the market value of the security and the creditor con-cerned may also indicate, a preference as to how, having regard tosubsection (3) and sections 99 to 101, that creditor wishes to have the20security and secured debt treated under the Personal InsolvencyArrangement.

(2) In formulating the proposal for a Personal InsolvencyArrangement the personal insolvency practitioner shall—

(a) have regard to subsection (3) and sections 99 to 101, and25

(b) to the extent that he or she considers it reasonable to doso, have regard to the preference of the secured creditorfurnished under subsection (1) as to the treatment of thesecurity and the secured debt.

(3) Subject to sections 99 to 101, the terms of a Personal Insol-30vency Arrangement may provide for the manner in which the secur-ity for a secured debt is to be treated which may include:

(a) the sale or any other disposition of the property or assetthe subject of the security;

(b) the surrender of the security to the debtor; or35

(c) the retention by the secured creditor of the security.

(4) Failure by the secured creditor to furnish valuation and theindication of preference relating to the security under subsection (1)within the period specified by the personal insolvency practitioner orsuch further period as may be offered by him or her shall not prevent40the personal insolvency practitioner from formulating a proposal fora Personal Insolvency Arrangement.

(5) Where a Personal Insolvency Arrangement provides for thesale or other disposal of the property which is the subject of thesecurity for a secured debt, and the realised value of that property is45less than the amount due in respect of the secured debt, the balancedue to the secured creditor shall abate in equal proportion to theunsecured debts covered by the Personal Insolvency Arrangementand shall be discharged with them on completion of the obligationsspecified in the Personal Insolvency Arrangement.50

89

Secured creditorsand PersonalInsolvencyArrangement.

(6) Without prejudice to the generality of section 96 or subsections(1) to (3) and subject to sections 99 to 101, a Personal InsolvencyArrangement may include one or more of the following terms inrelation to the secured debt:

(a) that the debtor pay interest and only part of the capital 5amount of the secured debt to the secured creditor for aspecified period of time which shall not exceed the dur-ation of the Personal Insolvency Arrangement;

(b) that the debtor make interest-only payments on thesecured debt for a specified period of time which shall 10not exceed the duration of the Personal InsolvencyArrangement;

(c) that the period over which the secured debt was to be paidor the time or times at which the secured debt was to berepaid be extended by a specified period of time; 15

(d) that the secured debt payments due to be made by thedebtor be deferred for a specified period of time whichshall not exceed the duration of the Personal InsolvencyArrangement;

(e) that the basis on which the interest rate relating to the 20secured debt be changed to one that is fixed, variable orat a margin above or below a reference rate;

(f) that the principal sum due on the secured debt be reducedprovided that the secured creditor be granted a share inthe debtor’s equity in the property the subject of the 25security;

(g) that the principal sum due on the secured debt be reducedbut subject to a condition that where the property thesubject of the security is subsequently sold for an amountgreater than the value attributed to that property for the 30purposes of the Personal Insolvency Arrangement, thesecured creditor’s security will continue to cover suchpart of the difference between the attributed value andthe amount for which the property is sold as is specifiedin the terms of the Personal Insolvency Arrangement; 35

(h) that arrears of payments existing at the inception of thePersonal Insolvency Arrangement and payments fallingdue during a specified period thereafter be added to theprincipal amount due in respect of the secured debt; and

(i) that the principal sum due in respect of the secured debt 40be reduced to a specified amount.

(7) Subject to subsections (3)(b), (9) and (10) a creditor who hasregistered a judgment mortgage against a debtor more than threemonths before the Insolvency Service’s issue of the protective certifi-cate is a secured creditor for the purposes of a Personal Insolvency 45Arrangement.

(8) Where requested by the personal insolvency practitioner to doso, a secured creditor shall provide proof of the existence and natureof the security with respect to the relevant secured debt, in defaultof which, the personal insolvency practitioner may treat the debt as 50unsecured debt for the purposes of this Chapter.

90

(9) Notwithstanding subsection (1) where the market value of thesecurity held by a secured creditor in respect of a secured debt is lessthan 10 per cent of the amount of that secured debt, the securedcreditor may, upon giving notice in writing to the personal insolvencypractitioner, elect to be treated as an unsecured creditor for the pur-5poses of this Chapter, other than this subsection and subsection (10).

(10) Where the personal insolvency practitioner receives noticeof an election referred to in subsection (9), the personal insolvencypractitioner shall formulate the proposal for the Personal InsolvencyArrangement on terms providing for the surrender of the security to10the debtor and shall treat the creditor as an unsecured creditor forthe purposes of this Chapter, other than this subsection and subsec-tion (9).

99.—(1) A Personal Insolvency Arrangement which includesterms providing for the sale or other disposal of the property the15subject of the security shall, unless the relevant secured creditoragrees otherwise, include a term providing that the amount to bepaid to the secured creditor shall amount at least to—

(a) the value of the security determined in accordance withsection 101; or20

(b) the amount of the debt (including principal, interest andarrears) secured by the security as of the date of the issueof the protective certificate,

whichever is the lesser.

(2) A Personal Insolvency Arrangement which includes terms25providing for—

(a) retention by a secured creditor of the security held by thatsecured creditor, and

(b) a reduction to a specified amount of the principal sum out-standing in respect of the secured debt,30

shall not, unless the relevant secured creditor agrees otherwise, spec-ify the amount of the reduced principal sum referred to in paragraph(b) at an amount less than the value of the security determined inaccordance with section 101.

(3) A Personal Insolvency Arrangement which includes terms35involving—

(a) retention by a secured creditor of the security held by thatsecured creditor, and

(b) a reduction of the principal sum due in respect of thesecured debt due to that secured creditor to a specified40amount,

shall, unless the relevant secured creditor agrees otherwise, alsoinclude terms providing that any such reduction of the principal sumis subject to the condition that, subject to subsections (4) and (5),where the property the subject of the security is sold or otherwise45disposed of for an amount or at a value greater than the value attri-buted to the security for the purposes of the Personal InsolvencyArrangement, the debtor shall pay to the secured creditor an amountadditional to the reduced principal sum calculated in accordance with

91

Protections forsecured creditors inPersonal InsolvencyArrangement.

subsection (4) or such greater amount as is provided for under theterms of the Personal Insolvency Arrangement.

(4) Subject to subsections (5), (6) and (7), the additional amountreferred to in subsection (3) shall be the lesser of—

(a) the entire of the difference between the value of the prop- 5erty on disposition and the value attributed to the secur-ity for the purposes of the Personal Insolvency Arrange-ment, and

(b) the amount of the reduction in the principal sum due inrespect of the secured debt under the Personal Insolvency 10Arrangement as referred to in subsection (3)(b).

(5) For the purposes of subsection (4), any portion of the increasein the value of the property attributable to improvements made to(or other measures taken which have made a material contributionto the increase in the value of) the property over which the debt is 15secured which were made subsequent to the valuation of the securityfor the purposes of the Personal Insolvency Arrangement shall bedisregarded in calculating the additional amount payable by thedebtor.

(6) Subsection (5) shall not apply unless the secured creditor has 20given his or her consent in writing to the improvements or othermeasures concerned.

(7) For the purposes of subsection (4), any payment to the securedcreditor pursuant to the Personal Insolvency Arrangement properlyattributable to a reduction of the principal sum due in respect of the 25secured debt shall be deducted from the additional amount referredto in subsection (3).

(8) For the purposes of subsection (4), the expenses and costsborne by the debtor in connection with the sale or other disposal ofthe property shall, to the extent that those costs and expenses are of 30a type and amount normally payable by the vendor of property ofthat nature, be deducted from the value attributable to the property.

(9) The obligation to pay an additional sum arising by virtue ofthis section shall not apply where the amount referred to in subsec-tion (4)(a) is less than the amount of the debt secured by the security 35immediately prior to the sale or other disposition of the property.

(10) Any additional sum payable by virtue of this section shallbe secured in the same manner as the principal sum referred to insubsection (3)(b).

(11) The obligation to pay an additional sum arising by virtue of 40this section shall cease—

(a) on the expiry of the period of 20 years commencing onthe date on which the Personal Insolvency Arrangementcomes into effect, or

(b) on the day on which the debtor is scheduled or permitted 45to fully discharge the amount secured by the security (orsuch later date as may be specified for so doing in thePersonal Insolvency Arrangement) and does so dischargehis or her indebtedness,

whichever first occurs. 50

92

100.—(1) In formulating a proposal for a Personal InsolvencyArrangement a personal insolvency practitioner shall, insofar asreasonably practicable, and having regard to the matters referred toin subsection (2), formulate the proposal on terms that will notrequire the debtor to dispose of an interest in or to cease to occupy5his or her principal private residence and the personal insolvencypractitioner shall consider any appropriate alternatives to suchvacation.

(2) The matters referred to in subsection (1) are—

(a) the costs likely to be incurred by the debtor by remaining10in occupation of his or her principal private residence(including rent, mortgage loan repayments, insurancepayments, owners’ management company service chargesand contributions, taxes or other charges relating toownership or occupation of the property imposed by or15under statute, and necessary maintenance in respect ofthe principal private residence),

(b) the debtor’s income and other financial circumstances asdisclosed in the Prescribed Financial Statement,

(c) the ability of other persons residing with the debtor in the20principal private residence to contribute to the costsreferred to in subsection (2), and

(d) the reasonable living accommodation needs of the debtorand his or her dependants and having regard to thoseneeds the cost of alternative accommodation (including25the costs which would necessarily be incurred inobtaining such accommodation).

(3) Where—

(a) the debtor confirms in writing to the personal insolvencypractitioner that the debtor does not wish to remain in30occupation of his or her principal private residence, or

(b) the personal insolvency practitioner, has, having discussedthe issue with the debtor, formed the opinion that, takingaccount of the matters referred to in subsection (2), thecosts of continuing to reside in the debtor’s principal35private residence are disproportionately large,

the personal insolvency practitioner shall not be required to formu-late the proposal for a Personal Insolvency Arrangement on termsthat will not require the debtor to cease to occupy his or her principalprivate residence.40

(4) A Personal Insolvency Arrangement shall not contain termsproviding for a disposal of the debtor’s interest in the principalprivate residence unless—

(a) the debtor has obtained independent legal advice inrelation to such disposal or, having been advised by the45personal insolvency practitioner to obtain such legaladvice, has declined to do so, and

(b) to the extent that the provisions of the Family Home Pro-tection Act 1976 or the Civil Partnership and Certain

93

Principal privateresidence inPersonal InsolvencyArrangement.

Valuation ofsecurity.

Rights and Obligations of Cohabitants Act 2010 apply tothe property, that all relevant provisions of those Actsare complied with.

101.—(1) Subject to subsections (3) and (4) the value of securityin respect of secured debt for the purposes of this Chapter shall be 5determined by agreement between the personal insolvency prac-titioner (acting on behalf of the debtor) and the relevant securedcreditor.

(2) Where the personal insolvency practitioner does not accept asecured creditor’s estimate of the value, if any, of the security con- 10tained in the submission of the secured creditor made under section98, the debtor, the personal insolvency practitioner and the securedcreditor shall in good faith endeavour to agree the market value forthe security having regard to any matter relevant to the valuation ofsecurity, including the matters specified in subsection (5). 15

(3) In the absence of agreement as to the value of the security,the personal insolvency practitioner and the relevant secured credi-tor shall appoint an appropriate independent expert to determine themarket value for the security having regard to any matter relevant tothe valuation of security, including the matters specified in subsec- 20tion (5).

(4) Where the personal insolvency practitioner and the securedcreditor are unable to agree as to the independent expert to beappointed under subsection (3) the issue may be referred by either ofthem to the Insolvency Service which shall appoint such independent 25person as it considers appropriate to determine the market value ofthe property concerned having regard to any matter relevant to thevaluation of security, including the matters specified in subsection(5), and the valuation carried out by such person shall be bindingon the personal insolvency practitioner, the debtor and the secured 30creditor concerned.

(5) The matters referred to in subsections (2) to (4) as the mattersspecified in subsection (5) are:

(a) the type of property the subject of the security;

(b) the priority of the security; 35

(c) the costs of disposing of the property the subject of thesecurity;

(d) the price at which similar property to that which is thesubject of the security has been sold within the 12 monthsprior to the issue of the protective certificate; 40

(e) the date of the most recent valuation or transaction withrespect to the property the subject of the security and thevalue attributed to the property in respect of that valua-tion or transaction;

(f) the value attributed to the property the subject of the 45security in the debtor’s accounting records (if any);

(g) the value attributed to the security in the secured credi-tor’s accounting records (if any);

94

(h) whether the market for the type of property the subject ofthe security is or has been subject to significant changesin conditions;

(i) data made available to the public by the Property ServicesRegulatory Authority pursuant to Part 12 of the Property5Services (Regulation) Act 2011 and which relate to prop-erty similar to the property the subject of the security;and

(j) any relevant statistical index relating to the valuation ofthe same or similar types of property as the property the10subject of the security.

(6) In this section “market value” as respects property means theprice which that property might reasonably be expected to fetch ona sale in the open market at the date of the issue of the protectivecertificate.15

(7) The creditor concerned and the personal insolvency prac-titioner shall each pay 50 per cent of the costs of carrying out thevaluation by the independent person pursuant to subsection (3) or(4).

102.—(1) Where a personal insolvency practitioner has prepared20a proposal for a Personal Insolvency Arrangement and the debtorhas consented to that proposal and the calling of a creditors’ meeting,the personal insolvency practitioner shall arrange for the holding ofa meeting of the creditors of the debtor for the purpose of consider-ing the proposal for a Personal Insolvency Arrangement.25

(2) Notice of the meeting shall be given by the personal insol-vency practitioner to each creditor in accordance with regulationsmade by the Minister under section 107 together with copies of theproposed Personal Insolvency Arrangement and the other docu-mentation referred to in section 103.30

(3) Notwithstanding regulations made under section 107, whencalling a creditors’ meeting to be held in accordance with section 102,the personal insolvency practitioner shall—

(a) give creditors at least 14 days’ written notice of the meet-ing and the date on which, and time and place at which,35the meeting will be held;

(b) accompany the notice referred to in paragraph (a) with thedocuments referred to in section 103;

(c) lodge a copy of the notice referred to in paragraph (a)and the documents referred to in section 103 with the40Insolvency Service.

(4) Where the debtor does not consent to the calling of a credi-tors’ meeting before the expiry of the protective certificate, the pro-cedure as respects that debtor making a proposal for a PersonalInsolvency Arrangement shall be treated as having concluded.45

95

Calling of creditors’meeting.

Documents to begiven to creditorsand the InsolvencyService whensummoning acreditors’ meeting.

103.—(1) The documents referred to in section 102(3)(b) are—

(a) a completed statement of the debtor’s financial affairs,showing the debtor’s position of insolvency, in the formof the Prescribed Financial Statement;

(b) the terms of the proposal for a Personal Insolvency 5Arrangement;

(c) statements by the personal insolvency practitioner to theeffect that:

(i) he or she has been instructed by the debtor to act aspersonal insolvency practitioner in connection with 10the Personal Insolvency Arrangement procedure, heor she has consented to so act and that he or she isa person entitled to act as a personal insolvency prac-titioner;

(ii) he or she has advised the debtor in accordance with 15section 48 of the debtor’s options for managing thedebtor’s financial difficulties;

(iii) he or she is not aware of any reasonable grounds tobelieve that the information contained in thedebtor’s Prescribed Financial Statement is other than 20complete and accurate;

(iv) he or she is of the opinion that the debtor satisfiesthe eligibility criteria for the proposal of a PersonalInsolvency Arrangement specified in section 88;

(d) a report of the personal insolvency practitioner— 25

(i) describing the outcome for creditors, and havingregard to the financial circumstances of the debtorwhether or not the proposed Personal InsolvencyArrangement represents a fair outcome for thecreditors, and indicating, where relevant, how the 30financial outcome for creditors (whether individuallyor as a member of a class of creditors) under theterms of the proposal is likely to be better than theestimated financial outcome for such creditors if thedebtor were to be adjudicated a bankrupt (having 35regard to, amongst other things, the estimated costsof the bankruptcy process); and

(ii) indicating whether or not he or she considers that thedebtor is reasonably likely to be able to comply withthe terms of the proposed Personal Insolvency 40Arrangement.

(2) Where a debtor’s financial position has materially changed inthe period between the completion by him or her of a PrescribedFinancial Statement under section 47 and the giving of notice of acreditors’ meeting pursuant to section 102(3)— 45

(a) the debtor shall inform the personal insolvency prac-titioner of that fact and of the nature of such change, and

(b) the personal insolvency practitioner shall, if he or she con-siders that the change necessitates the completion of anew Prescribed Financial Statement, assist the debtor in 50

96

completing such a new statement, and where those cir-cumstances arise the reference in this section to the Pre-scribed Financial Statement shall be construed as refer-ences to the new Prescribed Financial Statement.

(3) Where a new Prescribed Financial Statement is completed5pursuant to subsection (2), the personal insolvency practitioner shallfurnish a copy of that Statement to the Insolvency Service.

104.—(1) Subject to subsection (3), the voting rights exercisableby a creditor at a creditors’ meeting to consider a proposal for aPersonal Insolvency Arrangement shall be proportionate to the value10of the debt due by the debtor to the creditor.

(2) Where the amount of a debt due to a creditor is due in acurrency other than the currency of the State the amount of the debtshall be converted to the currency of the State at the rate publishedby the Central Bank of Ireland on the date of the issue of the protec-15tive certificate.

(3) Where the value of a security held by a creditor who is asecured creditor is determined, pursuant to section 101, to be lessthan the value of the debt due to the creditor, the portion of the debtwhich is in excess of the value of the security shall for the purposes of20this section not be considered as being secured.

(4) Where a secured creditor consents in writing to waive his orher security that creditor shall be treated as an unsecured creditorand shall only be entitled to vote at a creditors’ meeting as anunsecured creditor.25

(5) A creditor referred to in section 95(2)(d) shall not be entitledto vote at a creditors’ meeting.

(6) A creditor to whom a preferred debt is due shall not beentitled to vote in respect of that debt at a creditors’ meeting unlessthat creditor has furnished to the personal insolvency practitioner a30waiver in writing of the creditors’ right to have that debt treated asa preferred debt.

(7) Subsection (6) does not apply to a creditor to whom subsection(5) applies.

105.—(1) A creditors’ meeting called in accordance with section35104 shall consider the proposal for a Personal Insolvency Arrange-ment and, subject to subsection (4), shall vote on the proposal.

(2) A creditors’ meeting called by the personal insolvency prac-titioner under section 102 shall, subject to this section, be conductedin accordance with regulations made under section 107.40

(3) Subject to subsection (4) the proposal for a Personal Insol-vency Arrangement may, before the proposal has been voted upon,be subject to a proposal for a modification where the modificationaddresses an ambiguity or rectifies an error in the proposed PersonalInsolvency Arrangement where—45

(a) the modification has been proposed by a creditor or thepersonal insolvency practitioner, and

97

Voting rights atcreditors’ meetings.

Conduct ofcreditors’ meetingfor consideration ofproposed PersonalInsolvencyArrangement.

Proportion ofcreditors requiredto approve PersonalInsolvencyArrangement.

(b) the debtor gives his or her written consent to the modi-fication.

(4) The personal insolvency practitioner may where he or shebelieves it is in the interests of obtaining approval of the creditors atthe meeting, adjourn the meeting and with the consent in writing of 5the debtor shall prepare an amended proposal for a Personal Insol-vency Arrangement.

(5) Where the personal insolvency practitioner prepares a revisedproposal for a Personal Insolvency Arrangement pursuant to subsec-tion (4) he or she shall— 10

(a) notify each creditor of the time, date and venue of theadjourned meeting, and

(b) furnish such amended proposal to each creditor,

at least 7 days before the day of the adjourned meeting, unless all ofthe creditors waive the right to receive such period of notice in 15writing.

(6) An adjournment for the purpose of preparing an amendedproposal for a Personal Insolvency Arrangement pursuant to subsec-tion (4) may occur once only in the course of the period of validityof a protective certificate (including any extension of such period). 20

106.—(1) Subject to subsections (2) and (3) a proposed PersonalInsolvency Arrangement shall be considered as having beenapproved by a creditors’ meeting held under this Chapter where—

(a) a majority of creditors representing not less than 65 percent in value of the total of the debtor’s debts due to 25the creditors participating in the meeting and voting havevoted in favour of the proposal,

(b) creditors representing more than 50 per cent of the valueof the secured debts due to creditors who are—

(i) entitled to vote, and 30

(ii) have voted,

at the meeting as secured creditors have voted in favourof the proposal, and

(c) creditors representing more than 50 per cent by value ofthe creditors who— 35

(i) are entitled to vote, and

(ii) have voted,

at the meeting as unsecured creditors have voted infavour of the proposal.

(2) A creditor who is a connected person may not vote in favour 40of a proposal for a Personal Insolvency Arrangement.

(3) Where a Personal Insolvency Arrangement is approved inaccordance with subsection (1), the personal insolvency practitioner

98

shall as soon as practicable send a copy of the Personal InsolvencyArrangement to the Insolvency Service.

(4) Where on the taking of a vote at a creditors’ meeting heldfor the purpose of considering a proposal for a Personal InsolvencyArrangement the proposal is not approved in accordance with sub-5section (1), the Personal Insolvency Arrangement procedure shall bedeemed to have come to an end, and the protective certificate issuedunder section 91 shall cease to have effect.

(5) Where only one creditor is entitled to vote at the creditors’meeting (whether in respect of one or more debts), the requirement10to hold a creditors’ meeting may be satisfied where the creditor con-cerned notifies the personal insolvency practitioner in writing of thatcreditor’s approval or otherwise of the proposal for a Personal Insol-vency Arrangement.

(6) Subject to any regulations made under section 107 relating to15proxies, for the purposes of this section, only the person who appearsto the personal insolvency practitioner to be the owner of the debt(or an agent acting on behalf of that person) shall be entitled toreceive notices required to be sent to a creditor under this Chapteror to vote at the creditors’ meeting.20

(7) For the purposes of subsection (1)(b) the value of a secureddebt shall be—

(a) the market value of the security concerned determined inaccordance with section 101, or

(b) the amount of the debt secured by the security on the day25the protective certificate is issued,


107.—(1) The Minister may make regulations relating to the hold-ing of creditors’ meetings under this Chapter, and without prejudiceto the generality of the Minister’s power under this section, such30regulations may provide for—

(a) the holding of a meeting in circumstances where not all ofthe creditors are present in the same venue,

(b) the voting process including providing for the communi-cation of creditors’ votes to the personal insolvency prac-35titioner by telephony or electronically, and

(c) appointment of proxies to vote at such meetings.

(2) The venue for the holding of a creditors’ meeting shall besituated within the State.

(3) The period of notice of the meeting of creditors shall be 1440days, but such period may waived or abridged where the consent ofall the creditors to such waiver or abridgement is given in writing.

99

Procedures for theconduct of creditorsmeetings.

Steps to be takenby personalinsolvencypractitionerfollowing approvalof proposal forPersonal InsolvencyArrangement.

Steps to be takenby InsolvencyService followingnotification ofapproval ofPersonal InsolvencyArrangement bypersonal insolvencypractitioner undersection 108.

Determination ofobjection lodgedunder section 108.

Coming into effectof PersonalInsolvencyArrangement.

108.—(1) Where a Personal Insolvency Arrangement is approvedin accordance with section 106, the personal insolvency practitionershall as soon as practicable after the meeting has concluded notifythe Insolvency Service and each creditor concerned and enclose withthat notification— 5

(a) a certificate with the result of the vote taken at the credi-tors’ meeting and identifying the proportions of therespective categories of votes cast by those voting at thecreditors’ meeting, and

(b) a copy of the approved proposal for the Personal Insol- 10vency Arrangement.

(2) The personal insolvency practitioner shall, in addition to thedocuments referred to in subsection (1) also send a notice to eachcreditor indicating that he or she may make objection to the cominginto effect of the Personal Insolvency Arrangement by lodging a 15notice of objection with the appropriate court, within 14 days of thedate of the sending of that notice.

(3) A creditor may lodge a notice of objection with the appro-priate court within 14 days of the date of the sending by the personalinsolvency practitioner of the notice referred to in subsection (2) and 20shall at the same time send a copy of the notice of objection to—

(a) the Insolvency Service, and

(b) the personal insolvency practitioner.

109.—(1) On receipt of a notification by the personal insolvencypractitioner pursuant to section 108, the Insolvency Service shall 25record the approval in the Register of Personal Insolvency Arrange-ments, and notify the appropriate court and furnish to that court acopy of the Personal Insolvency Arrangement.

(2) Where the notification of the personal insolvency practitioneris received by the Insolvency Service before the expiry of the period 30of the protective certificate, such protective certificate shall continuein force until the Personal Insolvency Arrangement comes into effector all objections lodged with the appropriate court pursuant tosection 108(3) have been determined by the court.

110.—(1) The grounds on which objection may be made to the 35coming into effect of the Personal Insolvency Arrangement are thosespecified in section 116.


(3) Where the appropriate court upholds the objection to the Per- 40sonal Insolvency Arrangement, the Personal Insolvency Arrange-ment procedure shall be deemed to have come to an end, and theprotective certificate issued by the Insolvency Service shall cease tohave effect.

111.—(1) Where no objection is lodged by a creditor with the 45appropriate court within 14 days of the giving of the notice referredto in section 108, the court shall, where it is satisfied that the eligi-bility criteria specified in section 88 have been satisfied and that the

100

requisite proportions of creditors have approved the proposal for aPersonal Insolvency Arrangement, approve the coming into effect ofthe Arrangement.

(2) Where an objection is lodged with the appropriate court andthe matter is determined by the court on the basis that the objection5should not be allowed, the court shall, where it is satisfied that theeligibility criteria specified in section 88 have been satisfied and thatthe requisite proportions of creditors have approved the proposal fora Personal Insolvency Arrangement, approve the coming into effectof the Arrangement.10

(3) The court may accept a certificate issued by the InsolvencyService certifying that the eligibility criteria have been satisfied asevidence that such eligibility criteria have been satisfied.

(4) The court may accept the certificate issued by the personalinsolvency practitioner concerned pursuant to section 108(1)(a) as15evidence that the requisite proportions of creditors have approvedthe proposal for a Personal Insolvency Arrangement.

(5) Where the court approves the coming into effect of the Per-sonal Insolvency Arrangement it shall arrange for the InsolvencyService to be notified in accordance with rules of court.20

(6) On receipt of a notification by it from the court, the Insol-vency Service shall—

(a) notify the personal insolvency practitioner concerned, and

(b) register the Personal Insolvency Arrangement in theRegister of Personal Insolvency Arrangements.25

(7) The Personal Insolvency Arrangement shall come into effectupon being registered in the Register of Personal InsolvencyArrangements.

112.—(1) Upon a Personal Insolvency Arrangement being regis-tered in the Register of Personal Insolvency Arrangements it shall30have effect according to its terms and remain in effect until—

(a) it is completed in accordance with its terms or the termsof any variation made, or

(b) it is terminated in accordance with this Chapter.

(2) While a Personal Insolvency Arrangement is in effect, the fol-35lowing shall be parties to it and, subject to this Act, shall be boundby its terms—

(a) the debtor, and

(b) every creditor who was entitled to vote at the creditors’meeting regardless of whether such creditor voted to40approve the proposal for the Personal InsolvencyArrangement.

(3) Where a Personal Insolvency Arrangement is in effect, acreditor who is bound by it shall not—

(a) initiate any legal proceedings in relation to a specified45debt;

101

Effect of PersonalInsolvencyArrangement.

(b) take any step to prosecute such legal proceedings alreadyinitiated;

(c) take any step to secure or recover payment of a specifieddebt;

(d) execute or enforce a judgment or order of a court or tri- 5bunal against the debtor in respect of a specified debt;

(e) take any step to enforce security held by the creditor inconnection with a specified debt;

(f) take any step to recover goods in the possession or custodyof the debtor (whether or not title to the goods is vested 10in the creditor);

(g) otherwise initiate contact with the debtor in respect of pay-ment of a specified debt;

(h) in relation to an agreement with the debtor, including asecurity agreement, by reason only that the debtor is 15insolvent or that a Personal Insolvency Arrangement isin effect—

(i) terminate or amend that agreement, or

(ii) claim an accelerated payment, or a forfeiture of aterm, under that agreement. 20

(4) Where a Personal Insolvency Arrangement is in effect, acreditor of that debtor shall not apply for the issue of a summonsunder section 8 of the Bankruptcy Act 1988 or present a petition tohave the debtor concerned adjudicated a bankrupt in respect of adebt covered by the Personal Insolvency Arrangement. 25

(5) Where a Personal Insolvency Arrangement is in effect, and acreditor of that debtor has applied for the issue of a summons undersection 8 of the Bankruptcy Act 1988 or has presented a petition tohave the debtor concerned adjudicated a bankrupt in respect of adebt covered by the Personal Insolvency Arrangement, the creditor 30shall not proceed with the summons or the petition.

(6) Nothing in subsections (3) and (4) shall operate to prevent acreditor taking the actions referred to in that subsection as respectsa person who has jointly contracted with the debtor or is jointly liablewith the debtor to the creditor and that other person may sue or be 35sued in respect of the contract without joining the debtor.

(7) Subsection (6) does not apply where a Personal InsolvencyArrangement is also in force as respects the other person.

(8) In reckoning any period of time for the purpose of any applic-able limitation period in relation to any proceedings or process to 40which this section applies (including any limitation period under theStatute of Limitations 1957), the period in which the Personal Insol-vency Arrangement is in effect shall be disregarded.

(9) The period for which any judgment against the debtor inrelation to a debt which is the subject of a Personal Insolvency 45Arrangement has effect (whether under statute or rule of court) shallsubject to the provisions of this Act be extended by the period thatthe Personal Insolvency Arrangement is in effect.

102

(10) The Deeds of Arrangement Act 1887 does not apply to aPersonal Insolvency Arrangement.

(11) In this section, “specified debt” means a debt that is specifiedin a Personal Insolvency Arrangement as being subject to thatArrangement.5

113.—(1) Subject to the provisions of this section, a PersonalInsolvency Arrangement shall operate according to its terms and thedebtor and creditors concerned shall perform their obligations inaccordance with the Arrangement.

(2) Unless otherwise provided by the Personal Insolvency10Arrangement payments to be made to creditors under the terms ofthe arrangement shall be made by the debtor through the personalinsolvency practitioner concerned.

(3) The personal insolvency practitioner shall transmit paymentsreceived to each of the creditors in the agreed proportion on a15timely basis.

(4) The personal insolvency practitioner shall maintain regularcontact with the debtor and request such reports and conduct suchreviews as may be required, but such review shall in any event becarried out at least once in every period of 12 months.20

(5) The personal insolvency practitioner shall monitor implemen-tation of the Arrangement and where the debtor has or appearslikely to default in his or her obligations under the Arrangement,discuss the matter with the debtor.

(6) Where the circumstances of the debtor have changed in a25material respect the personal insolvency practitioner shall provideinformation to the debtor regarding his or her right or obligation toinitiate an application to vary the Arrangement in accordance withsection 115.

(7) Where the circumstances of a debtor have changed to such an30extent that a variation in the terms of an Arrangement is appro-priate, the personal insolvency practitioner shall take the necessarysteps to initiate a variation of the Arrangement under section 115.

(8) The personal insolvency practitioner shall deal with the prop-erty of the debtor in accordance with the Personal Insolvency35Arrangement.

(9) The personal insolvency practitioner shall respond in a timelymanner to requests for information regarding the operation of theArrangement from—

(a) the Insolvency Service,40

(b) the debtor, and

(c) the creditors.

(10) The personal insolvency practitioner shall maintain completeand accurate records of account of the moneys received from thedebtor and the moneys disbursed to the creditors and such moneys45shall while in the possession and control of the personal insolvencypractitioner be maintained in an account in the State with a bankauthorised to carry on business in the State, which account is used

103

Operation of termsof PersonalInsolvencyArrangement.

General duties andobligations ofdebtor arising underChapter 4.

Variation of aPersonal InsolvencyArrangement.

solely for the purposes of receiving payments from the debtor andtransmitting such payments to creditors (after the deduction of anyfees, costs and outlays payable to the personal insolvency prac-titioner permitted to be made).

114.—(1) A debtor who participates in any process under this 5Chapter is under an obligation to act in good faith, and in his or herdealings with the personal insolvency practitioner concerned to makefull disclosure to that practitioner of all of his or her assets, incomeand liabilities and of all other circumstances that are reasonablylikely to have a bearing on the ability of the debtor to make pay- 10ments to his or her creditors.

(2) A debtor who participates in any part of the process of apply-ing for or operating a Personal Insolvency Arrangement shall co-operate fully in the process, and in particular comply with anyreasonable request from the personal insolvency practitioner to 15provide assistance, documents and information necessary for theapplication of the process to the debtor’s case or the carrying out ofthe personal insolvency practitioner’s functions, including any debt,tax, employment, business, social welfare or other financial records.

(3) A debtor in respect of whom a Personal Insolvency Arrange- 20ment is in effect is under an obligation to inform the personal insol-vency practitioner as soon as reasonably practicable of any materialchange in the debtor’s circumstances, particularly an increase ordecrease in the level of the debtor’s assets, liabilities or income,which would affect the debtor’s ability to make repayments under 25the Personal Insolvency Arrangement.

(4) A debtor in respect of whom a Personal Insolvency Arrange-ment is in effect shall not, either alone or with any other person,obtain credit in an amount of more than €1,000 from any personwithout informing that person that he or she is subject as a debtor 30to a Personal Insolvency Arrangement.

(5) A debtor in respect of whom a Personal Insolvency Arrange-ment is in effect shall not transfer, lease, grant security over, orotherwise dispose of any interest in property above a prescribedvalue otherwise than in accordance with the terms of the Personal 35Insolvency Arrangement.

(6) A debtor shall inform the personal insolvency practitioner assoon as reasonably practicable after becoming aware of any inaccur-acy or omission in the debtor’s statement of affairs based on thePrescribed Financial Statement. 40

(7) A debtor who participates in a Personal Insolvency Arrange-ment shall not pay to creditors any additional payments separate tothe Personal Insolvency Arrangement in respect of debts covered inthe Personal Insolvency Arrangement.

115.—(1) Subject to this section a variation of a Personal Insol- 45vency Arrangement shall be made in accordance with the terms ofthe Personal Insolvency Arrangement.

(2) The debtor’s written consent shall be required to any variationof a Personal Insolvency Arrangement provided that any unreason-able refusal by the debtor to consent to a variation shall be subject 50to challenge in accordance with section 116.

104

(3) A debtor shall be considered to be acting reasonably wherethe debtor refuses to consent to a variation of a Personal InsolvencyArrangement where that variation would require the debtor—

(a) to make additional payments in excess of 50 per cent ofthe increase in his or her income available to him or her5after the deduction of income tax, social insurance contri-butions and other levies and charges on income, and

(b) to make a payment amounting to more than 50 per centof the value of any property acquired by the debtor afterthe coming into effect of the Personal Insolvency10Arrangement unless receipt of that property had beenanticipated by the terms of that arrangement.

(4) In order that a variation of a Personal Insolvency Arrange-ment take effect, in addition to the consent in writing of the debtorreferred to in subsection (2), the variation shall be approved at a15creditors’ meeting where—

(a) a majority of creditors representing not less than 65 percent in value of the total of the debtor’s debts remainingdue to the creditors participating in the meeting havevoted in favour of the proposed variation,20

(b) creditors representing more than 50 per cent by value ofthe creditors who are entitled to vote at the meeting assecured creditors have voted in favour of the proposedvariation, and

(c) creditors representing more than 50 per cent by value of25the creditors who are entitled to vote at the meeting asunsecured creditors have voted in favour of the pro-posed variation.

(5) Where a variation is approved in accordance with subsection(4) such variation shall, subject to the provisions of this Act, be bind-30ing on every creditor who was entitled to vote at the creditors’meeting.

(6) The procedures and other steps to be taken by the personalinsolvency practitioner and the Insolvency Service pursuant tosections 106 to 111 shall apply to the variation of a Personal Insol-35vency Arrangement and the reference in those sections to a PersonalInsolvency Arrangement shall for the purposes of a variation of aPersonal Insolvency Arrangement be construed as referring to suchvariation.

(7) Unless otherwise specified in the terms of a Personal Insol-40vency Arrangement, the debtor or any creditor may require the per-sonal insolvency practitioner to call a creditors’ meeting under thissection to consider a variation to the Personal Insolvency Arrange-ment on the basis that there has been a material change in thedebtor’s circumstances, in particular as respects an increase or45decrease in the level of the debtor’s assets, liabilities or income,which would affect the debtor’s ability to make payments under thePersonal Insolvency Arrangement.

(8) For the purposes of voting at a creditors’ meeting the votingrights of creditors shall be the same as those applying at the creditors’50meeting to consider a proposal for a Personal Insolvency Arrange-ment unless the debt due to the creditor concerned is considered tohave been discharged under the terms of the Personal Insolvency

105

Grounds ofchallenge bycreditor to cominginto effect orvariation ofPersonal InsolvencyArrangement.

Arrangement at the date of the calling of the creditors’ meeting toconsider the variation.

(9) For the purposes of subsection (4)(b) the value of a secureddebt shall be—

(a) the market value of the security concerned determined in 5accordance with section 101, or

(b) the amount of the debt secured by the security on the daythe proposal for variation is made,


(10) A reference in this Chapter to a Personal Insolvency 10Arrangement shall be construed as including such an arrangementas varied in accordance with this section.

116.—(1) The grounds on which a Personal Insolvency Arrange-ment may be challenged by a creditor under section 110 are, withoutprejudice to section 117, limited to the following matters: 15

(a) that the debtor has by his or her conduct within the 2 yearsprior to the issue of the protective certificate undersection 91 arranged his or her financial affairs primarilywith a view to being or becoming eligible to apply for aDebt Settlement Arrangement or a Personal Insolvency 20Arrangement;

(b) the procedural requirements specified in this Act werenot followed;

(c) a material inaccuracy or omission exists in the debtor’sstatement of affairs (based on the Prescribed Financial 25Statement) which causes a material detriment to thecreditor;

(d) the debtor, when the Personal Insolvency Arrangementwas proposed, did not satisfy the eligibility criteria speci-fied in section 88; 30

(e) the Personal Insolvency Arrangement unfairly prejudicesthe interests of a creditor;

(f) the debtor has committed an offence under this Act;

(g) the debtor had entered into a transaction with a person atan undervalue within the meaning of subsection (2) 35within the preceding 3 years that has materially contrib-uted to the debtor’s inability to pay his or her debts(other than any debts due to the person with whom thedebtor entered the transaction at an undervalue);

(h) the debtor had given a preference to a person within the 40meaning of subsection (3) within the preceding 3 yearsthat had the effect of substantially reducing the sum avail-able for distribution to the creditors (other than any debtsdue to the person who received the preference).

(2) For the purposes of subsection (1)(g), a debtor enters into a 45transaction with a person at an undervalue if—

106

(a) he or she makes a gift to that person or he or she otherwiseenters into a transaction with that person on terms thatprovide for him or her to receive no consideration, or

(b) he or she enters into a transaction with that person andthe value of which, in money or money’s worth, is signifi-5cantly greater than the value, in money or money’s worth,of the consideration provided by the person.

(3) For the purposes of subsection (1)(h), a debtor gives a prefer-ence to a person if—

(a) that person is one of the debtor’s creditors to whom a10qualifying debt is owed or is a surety or guarantor for anysuch debt, and

(b) the debtor does anything (including the grant of security)or suffers anything to be done which (in either case) hasthe effect of putting that person into a position which, in15the event that a Personal Insolvency Arrangement ismade in relation to the debtor, will be better than theposition he or she would have been in if that thing hadnot been done.

117.—Without prejudice to section 116, a creditor or a personal20insolvency practitioner may, at any time during the operation of aPersonal Insolvency Arrangement, apply to the appropriate courtto have a Personal Insolvency Arrangement terminated, and suchapplication shall be limited to the following grounds:

(a) a material inaccuracy or omission exists in the debtor’s25Prescribed Financial Statement which causes a materialdetriment to the creditor;

(b) the debtor, when the Personal Insolvency Arrangementwas proposed, did not satisfy the eligibility criteria speci-fied in section 88;30

(c) the debtor did not comply with the duties and obligationsimposed on him or her under the Personal InsolvencyArrangement process;

(d) the debtor has since the coming into effect of the PersonalInsolvency Arrangement been convicted of an offence35under this Act;

(e) the debtor is in arrears with his or her payments for aperiod of not less than 3 months;

(f) the debtor has failed to carry out any action necessary toenable a term of the Personal Insolvency Arrangement40to have effect;

(g) the debtor has unreasonably refused to consent to a vari-ation of the Personal Insolvency Arrangement.

118.—(1) Where the debtor is in arrears with his or her paymentsfor a period of 6 months the Personal Insolvency Arrangement shall45be deemed to have failed and shall terminate where the personalinsolvency practitioner notifies the Insolvency Service of suchdefault.

107

Application toappropriate court tohave PersonalInsolvencyArrangementterminated.

Personal InsolvencyArrangementdeemed to havefailed after 6 montharrears default.

Effect of prematuretermination ofPersonal InsolvencyArrangement ondebts.

Successfulcompletion ofPersonal InsolvencyArrangement.

Falserepresentations andomissions.

(2) Where the Insolvency Service receives a notification of defaultreferred to in subsection (1), it shall record the failure of the PersonalInsolvency Arrangement in the Register of Personal InsolvencyArrangements.

119.—(1) Subject to subsection (2), where a Personal Insolvency 5Arrangement has been deemed to come to an end, has failed or hasterminated under this Chapter, the debtor shall thereupon be liablein full for all debts covered by the Personal Insolvency Arrangement(including any arrears, charges and interest that have accrued duringthe continuance of the Personal Insolvency Arrangement but exclud- 10ing any amounts paid in respect of those debts during the continu-ance of the Personal Insolvency Arrangement), unless—

(a) the terms of the Personal Insolvency Arrangementprovide otherwise;

(b) the appropriate court has made an order otherwise. 15

(2) Subsection (1) has effect without prejudice to the validity ofany act done or property disposed of in accordance with the PersonalInsolvency Arrangement.

120.—(1) Upon the expiration of the Personal InsolvencyArrangement, and where the debtor has complied with his or her 20obligations under the Personal Insolvency Arrangement, the per-sonal insolvency practitioner shall notify the debtor, creditors andthe Insolvency Service.

(2) Where the debtor has complied with his or her obligationsunder the Personal Insolvency Arrangement, subject to the pro- 25visions of section 95(2), and 98(3) and (7) the debtor stands dis-charged from the unsecured debts specified in the Personal Insol-vency Arrangement.

(3) Where the debtor has complied with his or her obligationsunder the Personal Insolvency Arrangement, the debtor shall not 30stand discharged from the secured debts covered by the Arrange-ment except to the extent specified in the Personal InsolvencyArrangement.

(4) Where the Insolvency Service receives the notice referred toin subsection (1), it shall record the successful completion of the Per- 35sonal Insolvency Arrangement in the Register of Personal Insol-vency Arrangements.

Chapter 5

Offences under Part 3

121.—(1) A person on whose behalf an application to which this 40section applies is made is guilty of an offence if he or she, in respectof that application, knowingly or recklessly provides informationwhich is false or misleading in a material respect.

(2) This section applies to an application—

(a) under section 26 for a Debt Relief Notice, 45

(b) under section 54 for a protective certificate, or

108

(c) under section 89 for a protective certificate.

122.—A person who is a specified debtor under Chapter 1 is guiltyof an offence if he or she—

(a) intentionally fails to comply with a duty under section 33,or5

(b) provides information to the Insolvency Service in connec-tion with such a duty, or otherwise in connection with theperformance by the Insolvency Service of its functionsunder that Chapter, which is false or misleading in amaterial respect.10

123.—(1) A person to whom this section applies is guilty of anoffence where he or she commits an act referred to in subsection (2)for the purpose of—

(a) obtaining an insolvency arrangement,

(b) avoiding an obligation under section 33,15

(c) obtaining a protective certificate under Chapter 3 or 4 ofthis Part,

(d) avoiding an obligation under a Debt Settlement Arrange-ment or Personal Insolvency Arrangement,

(e) avoiding the variation or termination of an insolvency20arrangement, or

(f) avoiding any other obligation under this Act.

(2) A person commits an act referred to in this subsection wherehe or she—

(a) fails to provide, at the request of the Insolvency Service,25all of the financial records of which he or she has pos-session or control,

(b) prevents the production to the Insolvency Service of a fin-ancial record,

(c) conceals, destroys, mutilates or falsifies, or causes or per-30mits the concealment, destruction, mutilation or falsifi-cation of, a financial record,

(d) makes, or causes or permits the making of, any falseentries in a financial record, or

(e) disposes of, or alters or makes any omission in, or causes35or permits the disposal, altering or making of any omis-sion in, a financial record.

(3) This section applies to a person—

(a) on whose behalf an application under section 26, 54 or 87is made,40

(b) who is a specified debtor under Chapter 1, for so long asthe Debt Relief Notice remains in effect,

109

Breach ofobligation undersection 33.

Concealment orfalsification ofdocuments.

Fraudulent disposalof property.

Obtaining credit orengaging in businessby a debtor whileinsolvencyarrangement is ineffect.

(c) who is party, as a debtor, to a Debt Settlement Arrange-ment under Chapter 3, for so long as the Debt SettlementArrangement remains in effect, or

(d) who is party, as a debtor, to a Personal InsolvencyArrangement under Chapter 4, for so long as the Personal 5Insolvency Arrangement remains in effect.

(4) In this section “financial record”, in relation to a person towhom this section applies, means a book, document or record relat-ing to that person’s financial affairs.

124.—(1) A person to whom this section applies is guilty of an 10offence where he or she commits an act referred to in subsection (2)for the purpose of—

(a) obtaining an insolvency arrangement,

(b) avoiding an obligation under section 33,

(c) obtaining a protective certificate under Chapter 3 or 4 of 15Part 3,

(d) avoiding an obligation under a Debt Settlement Arrange-ment or Personal Insolvency Arrangement,

(e) avoiding the amendment or termination of an insolvencyarrangement, or 20

(f) avoiding any other obligation under this Act.

(2) A person commits an act referred to in this subsection wherehe or she makes or causes to be made any transfer for considerationor gift, of a value of not less than €400, of his or her property.

(3) This section applies to a person— 25

(a) on whose behalf an application under section 26, 54 or 87is made,

(b) who is a specified debtor under Chapter 1, for so long asthe Debt Relief Notice remains in effect,

(c) who is party, as a debtor, to a Debt Settlement Arrange- 30ment under Chapter 3, for so long as the Debt SettlementArrangement remains in effect, or

(d) who is party, as a debtor, to a Personal InsolvencyArrangement under Chapter 4, for so long as the PersonalInsolvency Arrangement remains in effect. 35

125.—(1) A specified debtor is guilty of an offence if he or she,either alone or with any other person, obtains credit in an amountof more than €1,000 without informing the person from whom thecredit is obtained of—

(a) his or her name, as specified in the Debt Relief Notice, 40Debt Settlement Arrangement or Personal InsolvencyArrangement concerned, and

(b) the fact that he or she is a specified debtor.

110

(2) In this section, “specified debtor” means a person who is—

(a) a specified debtor under Chapter 1, for so long as the DebtRelief Notice remains in effect,

(b) party, as a debtor, to a Debt Settlement Arrangementunder Chapter 3, for so long as the Debt Settlement5Arrangement remains in effect, or

(c) party, as a debtor, to a Personal Insolvency Arrangementunder Chapter 4, for so long as the Personal InsolvencyArrangement remains in effect.

(3) The reference in subsection (1) to a specified debtor obtaining10credit includes the following cases—

(a) where goods are bailed to him or her under a hire-pur-chase agreement, or agreed to be sold to him or herunder a conditional sale agreement, and

(b) where he or she is paid in advance (in money or otherwise)15for the supply of goods or services.

126.—A person who acts as—

(a) an authorised intermediary, or

(b) a personal insolvency practitioner,

who is not entitled to so act by virtue of this Act is guilty of an20offence.

127.—(1) Proceedings for an offence under this Act may be pros-ecuted summarily by the Insolvency Service.

(2) A person convicted of an offence under this Act shall beliable—25

(a) on summary conviction, to a Class C fine or to a period ofimprisonment not exceeding 12 months or to both, or

(b) on conviction on indictment, to a fine not exceeding€100,000 or to imprisonment for a term not exceeding 5years or to both.30

Chapter 6

Miscellaneous

128.—(1) The Insolvency Service shall establish and maintain thefollowing Registers—

(a) a Register to be known as the Register of Debt Relief35Notices,

(b) a Register to be known as the Register of Protective Cer-tificates,

(c) a Register to be known as the Register of Debt SettlementArrangements, and40

111

Unauthorisedperson acting asauthorisedintermediary,personal insolvencypractitioner.

Prosecution ofoffences.

Register ofInsolvencyArrangements.

Giving of notices.

(d) a Register to be known as the Register of Personal Insol-vency Arrangements,

and, in this section, “Register” means a Register established underthis subsection.

(2) A Register shall be in electronic form and such other form (if 5any) as the Insolvency Service decides.

(3) A Register shall contain—

(a) such information as is required under this Part to berecorded in it, and

(b) such other information as may be prescribed. 10

(4) Members of the public may inspect a Register at all reason-able times and may take copies of, or extracts from, entries in theRegister at a cost not exceeding the reasonable cost of making acopy.

(5) In any proceedings, a certificate bearing the seal of the Insol- 15vency Service and stating that—

(a) a person named in the certificate is recorded in a Registeras a debtor in respect of whom an insolvency arrange-ment or a protective certificate is in effect,

(b) a person named in the certificate is not recorded in a 20Register as a debtor in respect of whom an insolvencyarrangement or a protective certificate is in effect,

(c) at a specified date or during a specified period, a personnamed in the certificate was recorded in a Register as adebtor in respect of whom an insolvency arrangement or 25a protective certificate is in effect, or

(d) at a specified date or during a specified period, a personnamed in the certificate was not recorded in a Registeras a debtor in respect of whom an insolvency arrange-ment or a protective certificate is in effect, 30

is evidence of the matter referred to in paragraph (a), (b), (c) or (d)(as the case may be).

(6) A document purporting to be a certificate under subsection(5) is deemed to be such a certificate, unless the contrary is shown.

(7) In this section, “insolvency arrangement” means a Debt Relief 35Notice, Debt Settlement Arrangement or a Personal InsolvencyArrangement.

129.—(1) If, under this Part, a notice is required or permitted tobe given to a person, then unless an alternative (including any elec-tronic alternative) is agreed in advance between the person giving 40and the person receiving the notice, it may be given—

(a) where the person is a natural person, by giving it to theperson personally or by sending it by prepaid registeredletter addressed to the person at the person’s usual or lastknown place of residence or business, or 45

112

(b) where the person is a body corporate—

(i) by delivering it to a person who is or apparently isconcerned in the management of the body, or

(ii) by leaving it at the registered office of the body witha person apparently employed at that office, being a5person who has or apparently has attained the ageof 16 years, or

(iii) by sending it by prepaid registered letter addressed tothe body at that registered office.

(2) In subsection (1)(b), ‘‘registered office’’ in relation to a body10corporate means—

(a) the office of the body that is the registered office or princi-pal office in accordance with the law under which thebody is incorporated,

(b) if the body is not incorporated in the State, an office regis-15tered under a law of the State as a registered office ofthe body, or

(c) in the case of a body that has no such registered office orprincipal office, the principal place of business of thebody corporate in the State.20

130.—In this Part, in determining the amount or value of any assetof the debtor or the amount of any debt due to a creditor, wherethere are mutual credits or debts as between a debtor and a creditor,one debt or demand shall be set off against the other and only thebalance found owing shall be considered to be a debt or an asset on25one side or the other.

131.—(1) The Minister may by regulations prescribe a form (inthis Act referred to as a “Prescribed Financial Statement”) to beused by persons—

(a) in an application for a Debt Relief Notice,30

(b) in an application for a protective certificate under Chapter3 or 4,

(c) making a proposal for a Debt Settlement Arrangement, or

(d) making a proposal for a Personal InsolvencyArrangement,35

which form shall provide for the provision of detailed informationrelating to the income, assets, liabilities and necessary householdexpenditure incurred by such persons.

(2) In making regulations under this section the Minister may—

(a) prescribe different forms for different circumstances,40

(b) prescribe descriptions of income, assets, liabilities andexpenditure in respect of which information is to be pro-vided in the completion of a prescribed form includingthe income, assets and liabilities of persons ordinarily

113

Set-off to beapplied.

Prescribed FinancialStatement.

Guidelines andcodes of practice.

Application of lawsin relation tonetting agreements,etc.

residing with the debtor insofar as that information isreasonably available to the debtor,

(c) provide that information relating to domestic supportorders and sensitive information relating to the health ofthe debtor and persons residing with the debtor need not 5be individually particularised in such form where thoseparticulars have been furnished to the authorised inter-mediary or personal insolvency practitioner concernedand to the Insolvency Service.

(3) A Prescribed Financial Statement made under this Act shall 10be verified by means of a statutory declaration made under the Statu-tory Declarations Act 1938.

132.—(1) The Insolvency Service may prepare and publish guide-lines for personal insolvency practitioners in relation to the duties ofpersonal insolvency practitioners under this Part (which may include 15a model form of a Debt Settlement Arrangement or Personal Insol-vency Arrangement).

(2) A personal insolvency practitioner shall have regard to anyguidelines published under subsection (1) in carrying out his or herduties under this Part. 20

133.—(1) Nothing in this Act—

(a) affects the operation of—

(i) the Netting of Financial Contracts Act 1995,

(ii) the European Communities (Settlement Finality)Regulations 2010 (S.I. No. 624 of 2010), or 25

(iii) the European Communities (Financial CollateralArrangements) Regulations 2010 (S.I. No. 626 of2010),

in relation to an agreement to which a debtor is a party,or 30

(b) affects the operation of any provision of the law of aMember State required for the implementation of theprovisions of—

(i) Directive 98/26/EC4 of the European Parliament andof the Council of 19 May 1998 (as amended by 35Directive 2009/44/EC of the European Parliamentand of the Council of 6 May 2009), or

(ii) Directive 2002/47/EC of the European Parliament andof the Council of 6 June 2002 (as amended byDirective 2009/44/EC of the European Parliament 40and of the Council of 6 May 2009).

(2) Nothing in this Act affects the operation of the Asset CoveredSecurities Act 2001.

114

PART 4

Bankruptcy

134.—Section 3 of the Bankruptcy Act 1988 is amended by theinsertion of the following definitions—

“ ‘Debt Settlement Arrangement’ has the same meaning as in5the Personal Insolvency Act 2012;

‘Personal Insolvency Arrangement’ has the same meaning as ithas in the Personal Insolvency Act 2012;

‘statement of affairs’ means a statement of the debtor’s or bank-rupt’s affairs in the form specified in rules of court.”.10

135.—Section 8 of the Bankruptcy Act 1988 is amended—

(a) by the substitution of the following for subsection (1):

“(1) A summons (in this Act referred to as a ‘bank-ruptcy summons’) may be granted by the court to a person(in this section referred to as ‘the creditor’) who proves15that—

(a) a debt of more than €20,000 is due to the credi-tor concerned by the person against whom thesummons is sought,

(b) the debt is a liquidated sum, and20

(c) the creditor concerned has given not less than14 days’ notice to the debtor of the creditor’sintention to apply for a bankruptcy summonsand the debt remains unpaid.”,

and25

(b) in subsection (2) by the substitution of “more than€20,000” for “€1,300 or more”.


(a) in paragraph (a) of subsection (1) by the substitution of“amounts to more than €20,000” for “amounts to €1,90030or more”, and

(b) by the substitution of the following for subsection (3):

“(3) Subject to subsections (4) and (5) a debtor maypetition for adjudication against himself.

(4) A debtor may not present a petition for adjudi-35cation unless the petition is accompanied by an affidavitsworn by the debtor that he has, prior to presenting thepetition, made reasonable efforts to reach an appropriatearrangement with his creditors relating to his debts bymaking a proposal for a Debt Settlement Arrangement or40a Personal Insolvency Arrangement to the extent that thecircumstances of the debtor would permit him to enter intosuch an arrangement.

115

Amendment ofsection 3 ofBankruptcy Act1988.





(5) A debtor may not present a petition for adjudi-cation unless the petition is accompanied by a statementof affairs and such statement of affairs discloses that thedebts of the debtor exceed the assets of the debtor by anyamount greater than €20,000.”. 5

137.—The Bankruptcy Act 1988 is amended by the substitution ofthe following for section 12:

“Petitioningcreditor’scosts.

12.—(1) The petitioning creditor shall at hisown cost present his petition and prosecute it untilthe statutory sitting referred to in section 17(3), 10and subject to subsection (2) the Court shall at orafter the sitting make an order for the payment ofsuch costs out of the estate of the bankrupt incourse of priority to be settled by rules of court.

(2) In considering whether it is appropriate to 15make an order under subsection (1) the Courtshall have regard to whether or not the petitioningcreditor had unreasonably refused to accept pro-posals made in connection with a proposal for aDebt Settlement Arrangement or a Personal 20Insolvency Arrangement pursuant to the PersonalInsolvency Act 2012.”.


“Adjudication:creditor’spetition.

14.—(1) Subject to subsection (2), where the 25petition is presented by a creditor, the Court shall,if satisfied that the requirements of section 11(1)have been complied with, by order adjudicate thedebtor bankrupt.

(2) Before making an order under subsection 30(1), the Court shall consider the nature and valueof assets available to the debtor, the extent of hisliabilities, and whether the debtor’s inability tomeet his engagements could, having regard tothose matters and the contents of the debtor’s 35statement of affairs filed with the Court, be moreappropriately dealt with by means of—

(a) a Debt Settlement Arrangement, or

(b) a Personal Insolvency Arrangement,

and where the Court forms such an opinion the 40Court may adjourn the hearing of the petition toallow the debtor an opportunity to enter into suchof those arrangements as is specified by the Courtin adjourning the hearing.

(3) A copy of the order shall be served on the 45debtor, either personally or by leaving it at hisresidence or place of business in the State.”.

116


“Adjudicationon debtor’spetition.

15.—(1) Subject to subsection (2), where thepetition for adjudication is presented by thedebtor the Court may, where it considers it appro-5priate to do so, and where it is satisfied that thedebtor is insolvent and unable to meet his engage-ments with his creditors, by order adjudicate thedebtor a bankrupt.

(2) Before making an order under subsection10(1), the Court shall consider the nature and valueof assets available to the debtor, the extent of hisliabilities, and whether the debtor’s inability tomeet his engagements could, having regard tothose matters and the contents of the debtor’s15statement of affairs filed with the Court, be moreappropriately dealt with by means of—

(a) a Debt Settlement Arrangement, or

(b) a Personal Insolvency Arrangement,

and where the Court forms such an opinion the20court may adjourn the hearing of the petition toallow the debtor an opportunity to enter into suchof those arrangements as is specified by the Courtin adjourning the hearing.”.

140.—Section 39 of the Bankruptcy Act 1988 is amended—25

(a) by the substitution of the following for subsection (1):

“(1) Where a stay on the realisation of the estate of thebankrupt has been granted under section 38 or where theOfficial Assignee has otherwise consented in writing tosuspend the realisation of the bankrupt’s estate on such30terms as he may specify in such consent, the bankrupt shallcall a meeting of his creditors before the Court for thepurpose of making an offer of composition to them.”,

and

(b) by the substitution of the following for subsection (4):35

“(4) A creditor whose debt is less than €500 shall notbe entitled to vote.”.

141.—Section 45 of the Bankruptcy Act 1988 is amended in sub-section (1) by the substitution of “€6,000” for “€3,100”.

142.—Section 57 of the Bankruptcy Act 1988 is amended in sub-40section (1) by the substitution of “3 years” for “1 year”.

117









143.—Section 58 of the Bankruptcy Act 1988 is amended in sub-section (1) by the substitution of “3 years” for “1 year”.


(a) in paragraph (a) of subsection (1) by the substitution of “3years” for “two years”, and 5

(b) in paragraph (a) of subsection (3) by the substitution of “3years” for “two years”.

145.—Section 81 of the Bankruptcy Act 1988 is amended in para-graph (a) of subsection (1) by the substitution of “31st December”for “5th day of April”. 10

146.—Section 85 of the Bankruptcy Act 1988 is amended by thesubstitution of the following for section 85:

“Automaticdischarge frombankruptcy.

85.—(1) Subject to subsection (2) and section85A every bankruptcy shall, on the 3rd anniver-sary of the date of the making of the adjudication 15order in respect of that bankruptcy, unless prior tothat date the bankruptcy has been discharged orannulled, stand discharged.

(2) Subject to section 85A, a bankruptcy sub-sisting on the coming into operation of section 146 20of the Personal Insolvency Act 2012 where theorder of adjudication was made more than 3 yearsprior to the coming into operation of that section,shall stand discharged 6 months after that dayunless the bankruptcy has otherwise been dis- 25charged or annulled.

(3) Where a bankruptcy is discharged in pursu-ance of this section the unrealised property of thebankrupt shall remain vested in the OfficialAssignee for the benefit of the creditors. 30

(4) A bankrupt who is discharged from bank-ruptcy in pursuance of this section shall have aduty to co-operate with the Official Assignee inrelation to the realisation and distribution of suchof his property as is vested in the Official 35Assignee.

(5) In this section and in sections 85A to 85D“bankrupt” includes personal representatives andassigns.

Objection toautomaticdischarge frombankruptcy.

85A.—(1) The Official Assignee or a creditor 40of the bankrupt may, prior to the discharge of abankrupt pursuant to section 85, apply to theCourt to object to the discharge of a bankruptfrom bankruptcy in accordance with section 85where the Official Assignee or the creditor con- 45cerned believes that the bankrupt has—

118

(a) failed to co-operate with the OfficialAssignee in the realisation of the assetsof the bankrupt, or

(b) hidden from or failed to disclose to theOfficial Assignee income or assets5which could be realised for the benefitof the creditors of the bankrupt.

(2) An application under subsection (1) shall bemade on notice to the bankrupt and where madeby a creditor, notice shall also be given to the10Official Assignee.

(3) Where it appears to the Court that the mak-ing of an order pursuant to subsection (4) may bejustified, the Court may make an order that thematters complained of by the applicant under sub-15section (1) be further investigated and pending themaking of a determination of the application thebankruptcy shall not stand discharged by virtue ofsection 85.

(4) Where the court is satisfied that the bank-20rupt has—

(a) failed to co-operate with the OfficialAssignee in the realisation of the assetsof the bankrupt, or

(b) hidden from or failed to disclose to the25Official Assignee income or assetswhich could be realised for the benefitof the creditors of the bankrupt,

the Court may where it considers it appropriate todo so, order that in place of the discharge provided30for in section 85 the bankruptcy shall stand dis-charged on such later date, being not later thanthe 8th anniversary of the date of the making ofthe adjudication order, as the Court considersappropriate.35

(5) Where the Court has made an order undersubsection (4), no further application may bemade under subsection (1).

(6) The making of an order under this sectionshall not prevent an application being made for40discharge or annulment under section 85B.

Entitlement todischarge frombankruptcy.

85B.—(1) A bankrupt shall be entitled to anorder discharging him from bankruptcy whereprovision has been made for the payment of theexpenses, fees and costs of the bankruptcy, and for45preferential payments, and—

(a) he has paid one euro in the euro, withsuch interest as the Court may allow,or

(b) he has obtained the consent in writing50of all of his creditors, whose debts have

119

been proved and admitted in the bank-ruptcy, or

(c) section 41 (discharge of adjudicationorder) applies.

(2) The giving of consent by a creditor under 5subsection (1) constitutes a waiver by that creditorof the right to recover the amount concerned pro-ved and admitted in the bankruptcy.

Annulment ofadjudication inbankruptcy.

85C.—(1) A person shall be entitled to anannulment of his adjudication— 10

(a) where he has shown cause pursuant tosection 16, or

(b) in any other case where, in the opinionof the Court, he ought not to havebeen adjudicated bankrupt. 15

(2) An order of annulment shall provide thatany property of the bankrupt then vested in theOfficial Assignee shall be revested in or returnedto the bankrupt, and that order shall for all pur-poses be deemed to be a conveyance, assignment 20or transfer of that property to the bankrupt and,where appropriate, may be registered accordingly.

Bankruptcypaymentorders.

85D.—(1) The Court may on application beingmade to it by the Official Assignee, the trustee inbankruptcy or a creditor make an order requiring 25a bankrupt to make payments to the OfficialAssignee or the trustee in bankruptcy from hisincome or other assets for the benefit of his credi-tors (a “bankruptcy payment order”).

(2) The application referred to in subsection (1) 30may not be made after the bankrupt has been dis-charged from bankruptcy.

(3) An order made under subsection (1) shallnot require a bankrupt to make payments for aperiod of more than 5 years, but nothing in subsec- 35tion (2) shall prevent a bankruptcy payment orderhaving effect after the bankrupt has been dis-charged from bankruptcy.

(4) In making an order under subsection (1) theCourt shall have regard to the reasonable living 40expenses of the bankrupt and his family and theCourt may also have regard to any guidelines onreasonable expenditure and essential income pub-lished by the Official Assignee or by the Insol-vency Service. 45

(5) The Court may vary a bankruptcy paymentorder where there has been a material change inthe circumstances of the person required to makethe payments.

120

(6) Where a bankruptcy payment order is inforce as respects a bankrupt the provisions ofsection 65 shall not apply to the bankrupt.”.

PART 5

Regulation of Personal Insolvency Practitioners5

147.—(1) The Minister may designate a person to regulate per-sonal insolvency practitioners.

(2) In designating a person under subsection (1) the Minister shallhave regard to the experience of the person to be designated inrelation to the regulation or supervision of persons practising a pro-10fession or of bodies regulating such persons.

(3) A person designated under subsection (1) may authorise per-sons to carry on business as personal insolvency practitioners, andsuch authorisation may be subject to such conditions as the desig-nated person considers necessary for the orderly regulation of the15carrying on by the person of business as a personal insolvency prac-titioner and, in particular, for the protection of debtors and creditorswho are or may become parties to Debt Settlement Arrangementsor Personal Insolvency Arrangements.

(4) A person shall not carry on business as a personal insolvency20practitioner unless—

(a) there is in force as respects that person an indemnity bondin a form approved by the Minister in an amount of notless than €600,000 to cover the theft or misappropriationof the funds of debtors and creditors by the person, or25

(b) the carrying on of a business as a personal insolvency prac-titioner by that person is protected by a compensationfund which would indemnify debtors and creditors inrespect of the theft or misappropriation of the funds ofsuch debtors and creditors by that person.30

(5) A compensation fund referred to in subsection (4) shall at alltimes maintain a sum of not less than €9,000,000 for the compen-sation of debtors and creditors incurring a loss due to the theft ormisappropriation of the funds of those debtors and creditors.

(6) The person designated pursuant to subsection (1) may make35regulations relating to the circumstances and purposes for which apersonal insolvency practitioner may charge fees, costs and expenses,and a personal insolvency practitioner shall not charge fees or costsor seek to recover outlays which are not incurred—

(a) in accordance with such regulations, and40

(b) where a Debt Settlement Arrangement or a PersonalInsolvency Arrangement comes into effect, in accordancewith the terms of such an arrangement.

121

Regulation ofpersonal insolvencypractitioners.

Section 6. SCHEDULE

Repeals

Sections 87 to 109 of the Bankruptcy Act 1988.

122