# Oireachtas Justice Committee report on Personal Insolvency Bill



## Brendan Burgess (8 Mar 2012)

The Oireachtas Justice Committee has reported to the Minister. 



> Families should be facilitated as far as possible to remain in the  family home in any insolvency arrangement and the Minister should  examine the possibility of including such a provision in legislation,  according to a report on hearings in relation to the Scheme of the  Personal Insolvency Bill by the Joint Committee on Justice, Defence and  Equality.
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> The Committee also noted that the Bill contained little detail on how  Personal Insolvency Trustees (PITs) would be regulated and paid and the  kind of expertise or qualifications which would be required of them.
> ...


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## 44brendan (8 Mar 2012)

> Families should be facilitated as far as possible to remain in the family home in any insolvency arrangement and the Minister should examine the possibility of including such a provision in legislation, according to a report on hearings in relation to the Scheme of the Personal Insolvency Bill by the Joint Committee on Justice, Defence and Equality.


 
"As far as possible". very ambiguous and appears to be an unrealistic aspiration. I.e. Is it proposed to legislate to prevent a mortgagees rights to re-posess a property. If so, then this will surely kill the mortgage market. I.e. What bank will lend to a homeowner, on the basis that if the borrower defaults they have no access to the security? 


> The Committee recommends the regulation of former mortgage brokers who may wish to act as PITs.


Sounds extraordinory! What qualifications/experience would a mortgage broker have to act as a PIT. Why mortgage brokers? Why not include former carpenters & electricians & create a new career for them too?


> An appeals mechanism should be put in place where creditors refuse a proposed arrangement;


A further layer of bureaucracy, given that it is not in the interest of any secured creditor to agree to these arrangements.


> Secured and un-secured debt should not be segregated when considering a Personal Insolvency Arrangement – credit card bills, utility bills, etc should all be taken into account in the framing of any arrangement;


Seems totally unfair to a secured creditor. Is this likely to have implications for the associated security?


> Sustainable mortgages should not be allowed to enter an insolvency regime – a decision on determining when a mortgage is viable or becomes unsustainable should be made by the Credit Review Office, or a similar body;


So, we have an individual applying for insolvency because he/she is unable to meet his/her debts. Yet they have a sustainable mortgage!! Perhaps I'm a little dim this morning, but surely the test of sutainability is an ability to meet the repayments. Perhaps they mean sustainable on the basis that all other borrowings are ignored!


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## Bronte (9 Mar 2012)

Former mortgage brokers as PIT's, my goodness have we come to that.  How about accountants, book keepers or those in the legal profession good with numbers.


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