# Central Bank Pilot Debt Scheme and New Insolvency Laws.



## demoivre (14 Jun 2013)

A [broken link removed]  would see unsecured debts discharged over a 5 to 6 year period and your name on a register. The Central Bank Debt Scheme will see unsecured debts written off after 2 years if the borrower is " still in difficulty". What does "still in difficulty" mean in this context?


----------



## Brendan Burgess (14 Jun 2013)

These are the things which a Pilot Scheme will have to sort out.

The Central Bank will have to provide a lot more definitions. 

But you raise a very interesting comparison.  People would be far better off getting their debts written off over 2 years than over 6 years. Having said that, I don't see why anyone would go for a 6 year DSA when they can go for a 3 year bankruptcy. 

Brendan


----------



## Dr.Debt (14 Jun 2013)

Someone with a 3 year bankruptcy can be served with an Income Payments Order any time in the three year window. An IPO can last for up to 5 years.

So where someone has disposable income in bankruptcy, the pain can continue for between 3 and 8 years.

This is why you might opt for a DSA over bankruptcy.

Someone without any income will probably not be in a DSA in the 1st place


----------

