# Should zero-payment plans be available?



## Brendan Burgess (20 Nov 2009)

22.[FONT=&quot]              [/FONT]Do you agree that debt settlement and bankruptcy procedures should not be unavailable to debtors merely because such debtors cannot afford to make any repayment to creditors?  Do you therefore agree that “zero-payment” plans should be available in the case of a debtor who has no available income above that required for maintaining a reasonable standard of living (“No income, no assets” debtors)? [Paragraph 5.170]


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## Bronte (23 Nov 2009)

What is a zero payment plan?  If you cannot afford to repay then isn't the debt written off (as a bad debt) unless you have assets that the institution can force you to sell?


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## bond-007 (2 Dec 2009)

The debt may be written off a banks accounts but they generally will never stop pursuing the debt in the court by means of instalment orders and committals.


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## Bizzy (13 Dec 2009)

> "but they generally will never stop pursuing the debt in the court by means of instalment orders and committals."


So, if the Instalment Order is for say €10 per month and you don't have €10 per month above your Essential Living costs should such a person go to Prison? This is the "Can't Pay" person. It may be difficult to imagine such a person exists but THOUSANDS of them exist - just about.

The most basic income one can have is a payment from the State to subsidise one's living. I don't think any of this money should be used to pay a bank, or other personal debt, so long as the Citizen is in receipt of this income. 

But the person's circumstances can be reviewed 6 monthly on an on-going basis.

So the debtor does not 'Get-Off' Scott Free and the State does not endup footing the bill and the creditor will still get paid.


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## bond-007 (13 Dec 2009)

Bizzy said:


> So, if the Instalment Order is for say €10 per month and you don't have €10 per month above your Essential Living costs should such a person go to Prison? This is the "Can't Pay" person. It may be difficult to imagine such a person exists but THOUSANDS of them exist - just about.
> 
> The most basic income one can have is a payment from the State to subsidise one's living. I don't think any of this money should be used to pay a bank, or other personal debt, so long as the Citizen is in receipt of this income.


Many District Court judges will not grant orders in those situations. It is common sense. But it does not stop banks from wasting court time with these pointless applications.



> But the person's circumstances can be reviewed 6 monthly on an on-going basis.


Certainly. Most Judges will make this direction when refusing to grant an order to a creditor.


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