Proposed New Laws for Personal Insolvency

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Proposed New Laws for Personal Insolvency"

Transcription

1 Proposed New Laws for briefing Draft legislation proposes to alter the law and procedures of personal insolvency in radical ways. The proposals include the establishment of an independent Insolvency Service of Ireland and the introduction of new procedures for addressing unsecured debts (of any value) and secured debts (up to 3 million in aggregate but without limit in the case of agreement). Current bankruptcy laws would also be amended, principally to increase the minimum level of debt required to enter bankruptcy to 20,000 and to reduce the bankruptcy term from 12 years to three. On 29 June 2012 the Minister for Justice and Equality published the Bill 2012 which is set to amend the laws and procedures of personal insolvency in radical ways. As draft legislation, the Bill may be amended in the Houses of the Oireachtas (the Irish Parliament) although it is expected to be enacted in Lenders and other creditors in particular should be aware of these anticipated changes. Scope of the Proposals The proposed changes would apply only to personal insolvencies: the Bill would not affect the law on the winding up of companies, receivership or examinership. Insolvency Service The Bill proposes the establishment of an independent Insolvency Service of Ireland to oversee and operate a personal insolvency system. Practitioners The Bill proposes the appointment and regulation of personal insolvency practitioners ( PIPs ) for the purposes of the two higher-value insolvency procedures. The detail of the proposed regulatory arrangements is yet to be announced.

2 Judicial Role For the purposes of the various new procedures that the Bill proposes, the Circuit Court would determine applications concerning liabilities up to 2.5 million and the High Court would determine all other applications. New and Varied Procedures The Bill proposes three new personal insolvency procedures and variations to the existing court-based bankruptcy process. The new procedures would be largely non-judicial, overseen primarily by the Insolvency Service, but each would culminate in a judicial order: debt relief notice: this would be available in respect of unsecured and secured debt where the value is 20,000 or less; debt settlement arrangement: this would be available in respect of unsecured debt only, of any value; and personal insolvency arrangement: this would be available in respect of both secured debt up to 3 million (but without limit if every secured creditor agrees) and unsecured debt (without limit of value). A range of criminal offences would apply in respect of dishonest behaviour by a debtor in connection with any of the new procedures. (1) Debt Relief Notice A debt relief notice could be sought by a person: who is domiciled or resident in the State or who has resided in the State recently; who is unable to pay his or her debts and is unlikely to become solvent within five years; whose qualifying debts are 20,000 or less in value; and whose assets and savings and net disposable income each are below prescribed levels. Safeguards would prevent the use of the procedure where 25% or more of the qualifying debt has been incurred within six months of the application for a debt relief notice. An application would be made through an approved intermediary (which the Minister for Justice and Equality has said is likely to include the Money Advice and Budgeting Service), paid out of fees collected by the Insolvency Service, who would review the debtor s financial information and present it to the Insolvency Service. Following a review of the application by the Insolvency Service (including any supplementary queries it may raise), the Insolvency Service would decide whether, on the basis of prescribed criteria, to certify that the application is in order and would pass a copy of the certificate and of the supporting documentation to the Circuit Court to determine whether to issue a debt relief notice. If the court were to issue a debt relief notice, the notice would be entered in a public register and there would be a moratorium on the enforcement of the qualifying debts (but not any other debt of the person) for three years at the end of which time the debts specified in the notice (but no others) would be written off. However, the write-off of a secured debt pursuant to a debt relief notice would not affect the right of a secured creditor to enforce the relevant security. Special rules would apply if a debtor s financial circumstances were to improve (such as through a windfall or increased regular income) while a debt relief notice is in force, so that the gain would be shared 50:50 with the relevant creditor(s), and a debtor would have the option to exit the debt relief process early with the relevant debt(s) being extinguished fully by making a bullet payment of 50% of the relevant debt(s). A debtor would be restricted in applying for credit during the three-year supervision period without informing the creditor that the debtor is subject to a debt relief notice. mccann fitzgerald july 2012

3 A creditor and a debtor each would, during the three-year supervision period, have limited rights to challenge in court any decision of the Insolvency Service leading to or in respect of a debt relief notice; this would include a potential objection by a creditor to the inclusion of a particular debt in the relevant application or debt relief notice. Although a debt relief notice could apply to a secured debt (such as a mortgage), this is likely to be of limited practical relevance: a debtor could qualify for the debt relief notice procedure only if his or her non-exempted assets and savings are worth 400 or less. A person would only be entitled to avail of the debt relief notice procedure once in his or her life and never in combination with or within five years of availing of any other insolvency procedure. (2) Debt Settlement Arrangement A debt settlement arrangement could be proposed by a PIP on behalf of a person who is domiciled or ordinarily resident in or who carries on a business in the State if that person is unable to pay his or her personal and/or business debts and where other criteria are satisfied. Those other criteria include that the relevant debts are unsecured. The debt settlement arrangement procedure could not apply to a secured debt. A debtor would have to make detailed financial disclosure to the PIP. If accepted by the Insolvency Service on the basis of set criteria the matter would be transferred to the appropriate court which could issue a protective certificate, imposing a 70-day moratorium on the enforcement of the relevant debts (the court may extend that period by no more than 40 days). During that moratorium, the PIP would propose a debt settlement arrangement to the relevant creditor(s) in a special meeting called for that purpose. The proposed arrangement would involve the payment of an agreed proportion of relevant debts over a period of five (perhaps extended to six) years but, where possible, would seek to avoid requiring the debtor to dispose of the debtor s interest in his or her principal private residence. A debt settlement arrangement that is accepted by at least 65% in value of the unsecured creditors present and voting in a creditors meeting would bind every unsecured creditor. An arrangement would, by default, provide for equal treatment of all creditors but other arrangements may be agreed, subject to review by the court. The Insolvency Service would then transmit the proposed debt settlement arrangement to the court for approval and, if approved, it would be entered in a public register. A creditor would not then be permitted to commence any other insolvency procedure in respect of the particular debt(s) and, if the arrangement is performed in accordance with its terms, the debtor would be discharged fully from the relevant debt(s). The debt settlement arrangement procedure would include an implicit incentive for the PIP and the debtor to make to the creditors a proposal that is reasonable in the circumstances: if the creditors were to reject a proposal, then the debtor s protection would end and he or she would be vulnerable to bankruptcy proceedings. A preferential debt within the meaning of the current bankruptcy laws (such as wages and salary owed to an employee) would remain a preferential debt in any debt settlement arrangement. A range of other debts are specified as not being capable of release under the arrangement unless the relevant creditor agrees in writing to a compromise of the particular debt (eg taxes, service charge arrears and family law payments). A creditor would have limited rights to challenge in court the granting of a protective certificate and the making of a debt settlement arrangement. A person would only be entitled to avail of the debt settlement arrangement once in his or her life and never in combination with or within a prescribed period of time of availing of another insolvency procedure. briefing proposed new laws for personal insolvency

4 (3) Arrangement A PIP may propose a personal insolvency arrangement on behalf of a person who: is domiciled, or is or has recently been resident in or carries on or has recently carried on business in, the State; owes a debt to at least one secured creditor (such as a mortgage lender); has secured debts up to 3 million (but without limit if every secured creditor agrees); is cash-flow insolvent ; on a thorough assessment of his or her circumstances (including contingent and prospective assets, income and liabilities) is unlikely to be able to pay his or her debts over the course of a five-year period; and in respect of a debtor s principal private residence, has, for at least six months prior to the application, co-operated with his or her secured creditors under any applicable Central Bank Code (such as the Code of Conduct on Mortgage Arrears), but without any alternative repayment arrangements having been agreed. The initial procedures to lead to a personal insolvency arrangement would be similar to those for a debt settlement arrangement: a debtor would have to make detailed financial disclosure to the PIP and, if accepted by the Insolvency Service on the basis of set criteria, the matter would be transferred to the appropriate court which could issue a 70-day (extendible by 40 days) protective certificate to impose a moratorium on the enforcement of the relevant debts. During that moratorium, the PIP would propose a personal insolvency arrangement to the relevant creditor(s) in a special meeting called for that purpose. The proposed arrangement would involve the payment of an agreed proportion of relevant debts secured as well as unsecured over a period of six (perhaps seven) years. A proposed personal insolvency arrangement would have to be considered and approved by a qualified majority of 65% in value of all creditors actually voting, subject to support from more than 50% (in value) of unsecured and more than 50% (in value of the lesser of the debt or the security) of secured creditors, meeting together for that purpose. If approved by the required margin, the arrangement would become binding on every creditor (secured and unsecured). However, if a proposed arrangement were not to be approved, the protective period would end and the debtor would be vulnerable to other enforcement procedures (including bankruptcy). Special procedures would apply to assessing and representing the interests of a secured creditor, in particular if the arrangement were to propose that the secured property is sold as part of the compromise with creditors. A secured creditor would also benefit from a number of safeguards in the process, primarily that, if secured property is to be sold, the secured creditor must receive at least the value of the security or the amount of the debt (including principal, interest and arrears), whichever is the lesser. Special procedures would also apply to the inclusion of a debtor s principal private residence in a personal insolvency arrangement. A personal insolvency arrangement would have to be formulated so that, so far as reasonably practicable, the debtor would not have to vacate his or her home. In the event that a proposed arrangement would entail a disposal of the debtor s interest in his or her principal private residence, the debtor would have to receive (or to decline) independent legal advice. mccann fitzgerald july 2012

5 Interlocking personal insolvency arrangements may be permitted in respect of joint liabilities or where there is a close financial relationship between the parties. If a personal insolvency arrangement were to be approved and performed according to its terms, then, at the end of the relevant period, the remaining unsecured debts within the arrangement would be discharged and the remaining amount (if any) of the secured debts would be reduced or restructured in accordance with the terms of the arrangement. A preferential debt within the meaning of the current bankruptcy laws (such as wages and salary owed to an employee) would remain a preferential debt in any debt settlement arrangement. A range of other debts are specified as not being capable of release under the arrangement unless the relevant creditor agrees in writing to a compromise of the particular debt (eg taxes, service charge arrears and family law payments). A person would only be entitled to avail of the personal insolvency arrangement once in his or her life and never in combination with or within a prescribed period of time of availing of another insolvency procedure. (4) Bankruptcy This procedure would continue to apply to unsecured and secured debt, of any amount over 20,000, and would be the only process available for a secured debt greater than 3 million (unless every secured creditor agrees to using a personal insolvency arrangement) and certain other debts that are excluded from the new procedures (eg taxes). The principal changes proposed to be made to current laws are: the bankruptcy period would be reduced from 12 years to three; the court could order the debtor to make payments to creditors for up to five years (provided the application for such order is made within the three-year discharge period); a debt of 20,000 or less could not be pursued in bankruptcy. briefing proposed new laws for personal insolvency

6 Further information is available from: Jane Marshall Partner, Restructuring & Insolvency ddi Michael Murphy Parter, Restructuring & Insolvency ddi Ambrose Loughlin Partner, Head of Banking & Financial Services ddi Peter Osborne Consultant ddi This document is for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed. Principal Office Riverside One, Sir John Rogerson s Quay, Dublin 2 Tel: Fax: Winner 2012 Brussels 40 Square de Meeûs, 1000 Brussels Tel: Fax: London Tower 42, Level 38C, 25 Old Broad Street, London EC2N 1HQ Tel: Fax: McCann FitzGerald, July www.

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012 Background to and purpose of the Act PERSONAL INSOLVENCY ACT 2012 EXPLANATORY MEMORANDUM The Act provides for the reform of personal insolvency law and will introduce the following new non-judicial debt

More information

A Guide to a Debt Settlement Arrangement ( DSA )

A Guide to a Debt Settlement Arrangement ( DSA ) A Guide to a Debt Settlement Arrangement ( DSA ) May 2013 Contents Introduction... 2 What is a DSA?... 2 Eligibility... 3 What Type of Debts may or may not be included in a DSA?... 4 The DSA Process...

More information

Relate. Personal Insolvency Bill 2012. August 2012. New arrangements for dealing with debt. Contents

Relate. Personal Insolvency Bill 2012. August 2012. New arrangements for dealing with debt. Contents August 2012 Volume 39: Issue 8 ISSN 0790-4290 Contents Relate The journal of developments in social services, policy and legislation in Ireland Page No. 1 Personal Insolvency Bill 2012 This issue deals

More information

Personal Insolvency Service

Personal Insolvency Service Personal Insolvency Service W.O. McGrory & Co offers a specialist service to individuals and company directors experiencing personal financial problems that need the assistance of professional intervention.

More information

Personal Insolvency Act 2012

Personal Insolvency Act 2012 Personal Insolvency Act 2012 Date: 1 March 2013 Personal Insolvency Act 2012 On 26th December 2012, the Personal Insolvency Act was signed into law by the President of Ireland. On Friday 1 March 2013,

More information

Scheme of Personal Insolvency Bill. Additional Documentation. Worked Examples

Scheme of Personal Insolvency Bill. Additional Documentation. Worked Examples Scheme of Personal Insolvency Bill Additional Documentation Worked Examples What is a Debt Relief Certificate? The Debt Relief Certificate (DRC) provides for the forgiveness of debt for debtors with no

More information

MABS Guide to the Personal Insolvency Act, 2012

MABS Guide to the Personal Insolvency Act, 2012 MABS Guide to the Personal Insolvency Act, 2012 DISCLAIMER: This Guide is for general information purposes only and does not constitute legal, financial or other professional advice. Specific advice should

More information

DRN. Guide to a Debt Relief Notice

DRN. Guide to a Debt Relief Notice nseirbhís Dócmhainneachta na héirea DRN Guide to a Debt Relief Notice n Insolvency Service of Ireland A Debt Relief Notice enables an eligible insolvent debtor with limited disposable income and assets

More information

A Guide to a Debt Relief Notice ( DRN )

A Guide to a Debt Relief Notice ( DRN ) A Guide to a Debt Relief Notice ( DRN ) May 2013 Contents Introduction... 3 What is a DRN?... 3 Eligibility... 3 Debts which CAN be included in a DRN... 4 Key Features of a DRN... 5 Main steps in the process...

More information

Companies Bill 2012. Amendments Made by the Houses of the Oireachtas. briefing

Companies Bill 2012. Amendments Made by the Houses of the Oireachtas. briefing by the Houses of the briefing This briefing is based on the Companies Bill as it has completed Report Stage and Final Stage in Seanad Éireann (30 September 2014). A general briefing on the Companies Bill

More information

DSA. Guide to a Debt Settlement Arrangement

DSA. Guide to a Debt Settlement Arrangement nseirbhís Dócmhainneachta na héirea DSA Guide to a Debt Settlement Arrangement n Insolvency Service of Ireland A Debt Settlement Arrangement enables an eligible insolvent debtor to reach agreement with

More information

PIA. Guide to a Personal Insolvency Arrangement

PIA. Guide to a Personal Insolvency Arrangement nseirbhís Dócmhainneachta na héirea PIA Guide to a Personal Insolvency Arrangement n Insolvency Service of Ireland A Personal Insolvency Arrangement enables an eligible insolvent debtor to reach agreement

More information

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd Insolvency and Business Recovery Procedures A Brief Guide Compiled by Compass Financial Recovery and Insolvency Ltd I What is Insolvency? Insolvency is legally defined as: A company is insolvent (unable

More information

Debt Relief Notice (DRN)

Debt Relief Notice (DRN) Debt Relief Notice (DRN) A solution for people with problem debt under 35,000 Insolvency Service of Ireland nseirbhís Dócmhainneachta na héirea n ISI Tackling problem debt together Insolvency Service of

More information

PERSONAL INSOLVENCY PRACTITIONER

PERSONAL INSOLVENCY PRACTITIONER PERSONAL INSOLVENCY PRACTITIONER EXAMINATION - PILOT PAPER INSTRUCTIONS TO THE CANDIDATE: SECTION A: Answer Question 1, and SECTION B: Answer any 2 from Questions 2, 3 and 4. Time Allowed 2 hours plus

More information

New Rules for Mortgage Credit and Property Related Loans

New Rules for Mortgage Credit and Property Related Loans Mortgage Credit and Property Related briefing The recent regulations transposing the Mortgage Credit Directive 2014/17 into Irish law are raising a host of issues for creditors, including, in particular,

More information

Corporate Insolvency in Ireland

Corporate Insolvency in Ireland Corporate Insolvency in Ireland 0 CORPORATE INSOLVENCY IN IRELAND Introduction The collapse of the celtic tiger in Ireland has triggered a significant increase in the number of corporate entities incorporated

More information

Liquidators, Receivers and Examiners Their duties and powers

Liquidators, Receivers and Examiners Their duties and powers Liquidators, Receivers and Examiners Their duties and powers A quick guide Introduction We have produced this information booklet to explain the powers, duties and responsibilities of liquidators, receivers

More information

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner.

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner. Glossary of terms Administration Order a) A Court order placing the company that is, or is likely to become, unable to pay its debts under the control of an administrator following an application by, inter

More information

An Bille um Chomhshocraíocht Socraíochta Morgáiste d Áras an Teaghlaigh, 2014 Family Home Mortgage Settlement Arrangement Bill 2014

An Bille um Chomhshocraíocht Socraíochta Morgáiste d Áras an Teaghlaigh, 2014 Family Home Mortgage Settlement Arrangement Bill 2014 An Bille um Chomhshocraíocht Socraíochta Morgáiste d Áras an Teaghlaigh, 14 Family Home Mortgage Settlement Arrangement Bill 14 Mar a tionscnaíodh As initiated [No. 118 of 14] AN BILLE UM CHOMHSHOCRAÍOCHT

More information

Personal Insolvency Debt Relief Notices ( DRN ) Debt Settlement Arrangement ( DSA ) Personal Insolvency Arrangement ( PIA )

Personal Insolvency Debt Relief Notices ( DRN ) Debt Settlement Arrangement ( DSA ) Personal Insolvency Arrangement ( PIA ) Personal Insolvency O Hanlon Tax Limited, 6 City Gate, Lower Bridge Street, Dublin 8 Tel: 01 604 0280 Fax: 01 604 0281 Eml: info@ohanlontax.ie The Personal Insolvency Act 2012 introduces new concepts to

More information

The Standard Debt Settlement Arrangement. Protocol. July 2014 version

The Standard Debt Settlement Arrangement. Protocol. July 2014 version The Standard Debt Settlement Arrangement Protocol July 2014 version Effective from 14 July 2014 TABLE OF CONTENTS Purpose and scope of the Protocol 3 1. Background and purpose of the Protocol 3 2. Scope

More information

Personal Insolvency Act 2012 An Update

Personal Insolvency Act 2012 An Update 1 arthur cox FINANCe Group Briefing December 2013 Personal Insolvency Act 2012 An Update This document contains a general summary of developments and is not a complete or definitive statement of the law.

More information

Personal Insolvency How safe is my pension now?

Personal Insolvency How safe is my pension now? Issue 2 - August 2013 - For financial advisers only Pension P st How safe is my pension? must be one of the most common queries raised by clients who are in financial difficulties. For our second edition

More information

Business Debtline www.businessdebtline.org 0800 0838 018

Business Debtline www.businessdebtline.org 0800 0838 018 BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 INDIVIDUAL VOLUNTARY ARRANGEMENTS FACT SHEET NO. 1 NORTHERN IRELAND What is an individual voluntary arrangement (IVA)? a sole

More information

Recommendations on the treatment of employee wages and other debts arising in the employment relationship in the context of debt settlement

Recommendations on the treatment of employee wages and other debts arising in the employment relationship in the context of debt settlement Recommendations on the treatment of employee wages and other debts arising in the employment relationship in the context of debt settlement arrangements under the Personal Insolvency Bill 2012 November

More information

What is an individual voluntary arrangement (IVA)?

What is an individual voluntary arrangement (IVA)? Fact sheet no. BDL NI01 What is an individual voluntary arrangement (IVA)? An individual voluntary arrangement (IVA) is a legally binding agreement between you and your creditors. This agreement allows

More information

Corporate Insolvency in Ireland Dillon Eustace

Corporate Insolvency in Ireland Dillon Eustace Corporate Insolvency in Ireland Dillon Eustace Table of Contents Page 1. Mechanisms of Corporate Insolvency 1 2. Liquidation 1 3. Functions of the Liquidator 2 4. Liquidation and Creditors Rights 2 5.

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms INFORMATION SHEET 41 Insolvency: a glossary of terms This is a brief explanation of some of the terms you may come across in company insolvency proceedings. Please note that this glossary is for general

More information

Assets Anything that belongs to the debtor that may be used to pay his/her debts.

Assets Anything that belongs to the debtor that may be used to pay his/her debts. This is a brief explanation of some of the terms you may come across in debt and insolvency proceedings. Please note that this glossary is for general guidance only. Many of the terms have a specific technical

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms Insolvency: a glossary of terms This is a brief explanation of some of the terms you may come across in company insolvency proceedings. Please note that this glossary is for general guidance only. Many

More information

Debt Settlement Arrangement (DSA)

Debt Settlement Arrangement (DSA) Debt Settlement Arrangement (DSA) A solution for people with unmanageable unsecured debt Insolvency Service of Ireland Seirbhís Dócmhainneachta na héireann ISI Tackling problem debt together Insolvency

More information

The Scheme attempts to address these objectives by two main mechanisms;

The Scheme attempts to address these objectives by two main mechanisms; The Personal Insolvency Bill The Personal Insolvency Bill which is due to be enacted in the coming months is likely to bring about a significant change in relation to how personal debt liabilities are

More information

Trust Deed Equivalents in Australia, Canada and the U.S.

Trust Deed Equivalents in Australia, Canada and the U.S. Trust Deed Equivalents in Australia, Canada and the U.S. Australia A personal insolvency agreement (PIA) under Part X of the Bankruptcy Act 1966 is a way for a debtor to come to an agreement with their

More information

SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY

SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY The most common options available to individuals who are unable to pay their debts are:- 1 Do nothing. 2 Obtain an unsecured debt consolidation

More information

JUNE 2013 DRN. Debt Solutions DRN Scenario. Excludable Debts

JUNE 2013 DRN. Debt Solutions DRN Scenario. Excludable Debts JUNE 2013 DRN Debt Solutions DRN Scenario Excludable Debts TO HELP EXPLAIN SOME OF THE CONCEPTS CONTAINED IN THE PERSONAL INSOLVENCY LEGISLATION, THE INSOLVENCY SERVICE OF IRELAND HAS CREATED SOME POSSIBLE

More information

BANKRUPTCY TERMINOLOGY

BANKRUPTCY TERMINOLOGY ADVERSARY PROCEEDING BANKRUPTCY TERMINOLOGY A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the bankruptcy court. ASSUME An agreement to continue performing

More information

PERSONAL INSOLVENCY PRACTITIONER

PERSONAL INSOLVENCY PRACTITIONER PERSONAL INSOLVENCY PRACTITIONER EXAMINATION - JUNE 2013 INSTRUCTIONS TO THE CANDIDATE: SECTION A: Answer Question 1, and SECTION B: Answer any 2 from Questions 2, 3 and 4. Time Allowed 2 hours plus 15

More information

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 14 September 2012. on measures relating to personal insolvency (CON/2012/70)

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 14 September 2012. on measures relating to personal insolvency (CON/2012/70) EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 14 September 2012 on measures relating to personal insolvency (CON/2012/70) Introduction and legal basis On 25 July 2012, the European Central Bank

More information

Policy No: F&A 03-15 Approved by Council: June 26, 2013 Resolution: 2013.12.16. The policy should assist in:

Policy No: F&A 03-15 Approved by Council: June 26, 2013 Resolution: 2013.12.16. The policy should assist in: Treasury Department Policy Section: Finance & Accounting Content Updated: Supersedes Policy: Policy No: F&A 03-15 Approved by Council: June 26, 2013 Resolution: 2013.12.16 Pages: 1 of 11 GENERAL ACCOUNTS

More information

Personal Insolvency Bill

Personal Insolvency Bill Responsiveness Responsiveness Finance Group Briefing Personal Insolvency Bill This Briefing contains a general summary of developments, and is not a complete or definitive statement of the law. Specific

More information

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy.

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy. Bankruptcy and Restructuring 121 BANKRUPTCY AND RESTRUCTURING Under Canadian constitutional law, the federal government has exclusive legislative control over bankruptcy and insolvency matters. Insolvency

More information

INSOLVENT TENANTS OPTIONS FOR LANDLORDS

INSOLVENT TENANTS OPTIONS FOR LANDLORDS INSOLVENT TENANTS OPTIONS FOR LANDLORDS Contents 1 Tenant in Liquidation... 2 2 Tenant in Administration... 3 3 Tenant in Receivership... 3 4 Tenant in Company Voluntary Arrangement... 5 5 Tenant in Bankruptcy...

More information

Company Liquidation and the Committee of Inspection

Company Liquidation and the Committee of Inspection Company Liquidation and the Committee of Inspection For more information on plain English go to www.simplyput.ie Company Liquidation and the Committee of Inspection About this guide This guide explains

More information

In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com

In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com Debtfocus Business Recovery & Insolvency Ltd In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com Content highlights Before you read this guide in detail, you

More information

An Introduction To Insolvency - Part 1

An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 Introduction A company (or LLP) will be considered to be insolvent if it is unable to pay its debts. A person can be insolvent,

More information

Australia. I. Generally

Australia. I. Generally Australia Texas New York Washington, DC Connecticut Dubai Kazakhstan London I. Generally Australian bankruptcy procedure is regulated by its Corporations Law, which is a single statute that governs almost

More information

Receivership: a guide for creditors

Receivership: a guide for creditors INFORMATION SHEET 54 Receivership: a guide for creditors If a company is in financial difficulty, a secured creditor or the court may put the company into receivership. This information sheet provides

More information

Relate. Personal Insolvency Act 2012. February 2013. Introduction. Contents

Relate. Personal Insolvency Act 2012. February 2013. Introduction. Contents February 2013 Volume 40: Issue 2 ISSN 0790-4290 Contents Relate The journal of developments in social services, policy and legislation in Ireland Page No. 1. Personal Insolvency Act 2012 There have been

More information

JUNE 2013 PIA. Debt Solutions PIA Scenario. Preferential and Excludable Debts

JUNE 2013 PIA. Debt Solutions PIA Scenario. Preferential and Excludable Debts JUNE 2013 PIA Debt Solutions PIA Scenario Preferential and Excludable Debts TO HELP EXPLAIN SOME OF THE CONCEPTS CONTAINED IN THE PERSONAL INSOLVENCY LEGISLATION, THE INSOLVENCY SERVICE OF IRELAND HAS

More information

Guidance. Guide to Debt Relief Orders. When, Where, How, Who, What

Guidance. Guide to Debt Relief Orders. When, Where, How, Who, What Guidance Guide to Debt Relief Orders When, Where, How, Who, What June 2011 Contents 1 About this Guide Page 5 2 What is a 6 What are your duties in connection with a debt relief order? 10 Debt relief

More information

An Bille um Dhócmhainneacht Phearsanta (Leasú), 2014 Personal Insolvency (Amendment) Bill 2014

An Bille um Dhócmhainneacht Phearsanta (Leasú), 2014 Personal Insolvency (Amendment) Bill 2014 An Bille um Dhócmhainneacht Phearsanta (Leasú), 14 Personal Insolvency (Amendment) Bill 14 Mar a tionscnaíodh As initiated [No. 96 of 14] AN BILLE UM DHÓCMHAINNEACHT PHEARSANTA (LEASÚ), 14 PERSONAL INSOLVENCY

More information

Tax & Duty Manual. Procedures for Personal Insolvency Caseworking. Collector-General s Office

Tax & Duty Manual. Procedures for Personal Insolvency Caseworking. Collector-General s Office Tax & Duty Manual Procedures for Personal Insolvency Caseworking Collector-General s Office Updated November 2015 Table of Contents 1. Background Legislation...4 2. Procedures for Dealing with Personal

More information

RESPONSE TO LRC PERSONAL DEBT MANAGEMENT AND DEBT ENFORCEMENT REPORT. Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements

RESPONSE TO LRC PERSONAL DEBT MANAGEMENT AND DEBT ENFORCEMENT REPORT. Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements Reform of the Bankruptcy Act The Report recommends that a thorough review of the Bankruptcy Act 1988 should be undertaken. Comment: It is

More information

Insolvency and enforcement procedures in England & Wales

Insolvency and enforcement procedures in England & Wales Insolvency and enforcement procedures in England & Wales Contents Introduction...01 Company Voluntary Arrangement (CVA)...02 Scheme of Arrangement (Scheme)...05 Administration / Pre-pack Administration...08

More information

Click here for Explanatory Memorandum

Click here for Explanatory Memorandum Click here for Explanatory Memorandum AN BILLE UM DHÓCMHAINNEACHT PHEARSANTA, 2012 PERSONAL INSOLVENCY BILL 2012 Mar a tionscnaíodh As initiated ARRANGEMENT OF SECTIONS PART 1 Preliminary and General Section

More information

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY CONTENTS INTRODUCTION 1. General information 2. Voluntary arrangements 3. Administration

More information

Liquidators, Receivers and Examiners Their duties and powers. A quick guide

Liquidators, Receivers and Examiners Their duties and powers. A quick guide Liquidators, Receivers and Examiners Their duties and powers A quick guide Contents About this guide 2 What are liquidations, receiverships and examinerships? 2 What are liquidators, receivers and examiners?

More information

Corporate restructuring guidelines Insolvency

Corporate restructuring guidelines Insolvency Corporate restructuring guidelines Insolvency Prepared by: 1 Whitney Moore Published by: Irish Business and Employers Confederation 84-86 Lower Baggot Street Dublin 2 Date of publication: April 2010 Author:

More information

Comparison of Corporate Insolvency Procedures

Comparison of Corporate Insolvency Procedures Comparison of Corporate Insolvency Procedures There are five categories of insolvency procedure for companies in England, Wales and Northern Ireland. These are: Company Voluntary Arrangement (CVA) Administration

More information

TECHNICAL ALERT 02/2016 PERSONAL INSOLVENCY (AMENDMENT) ACT 2015

TECHNICAL ALERT 02/2016 PERSONAL INSOLVENCY (AMENDMENT) ACT 2015 TECHNICAL ALERT 02/2016 PERSONAL INSOLVENCY (AMENDMENT) ACT 2015 Readers of this document should note that the interpretation of detailed provisions of this amending legislation has yet to be tested in

More information

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159 Restructuring and Insolvency 2007/08 South Africa South Africa Leonard Katz, Edward Nathan Sonnenbergs www.practicallaw.com/0-234-3973 SECURITY AND PRIORITIES Formalities 1. What are the most common forms

More information

Insolvency: a guide for shareholders

Insolvency: a guide for shareholders INFORMATION SHEET 43 Insolvency: a guide for shareholders If a company is in financial difficulty, it can be put under the control of an independent external administrator. The role of the external administrator

More information

Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED. Updated to 18 November 2014

Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED. Updated to 18 November 2014 Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED Updated to 18 November 2014 This Revised Act is an administrative consolidation of the. It is prepared by the Law Reform Commission in accordance

More information

Alternatives to bankruptcy

Alternatives to bankruptcy Alternatives to bankruptcy Contents Introduction... 3 You do not have to become bankrupt just because you are in debt.... 3 Informal Arrangements?... 3 Informal arrangements, also known as 'family arrangements'

More information

Insolvency: a guide for directors

Insolvency: a guide for directors INFORMATION SHEET 42 Insolvency: a guide for directors This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and

More information

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer November 2011 1 An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent

More information

Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED. Updated to 22 December 2015

Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED. Updated to 22 December 2015 Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 REVISED Updated to 22 December 2015 This Revised Act is an administrative consolidation of the. It is prepared by the Law Reform Commission in accordance

More information

IBRC customers who have queries can contact the helpdesk at 1800 303632 between 9am to 5pm

IBRC customers who have queries can contact the helpdesk at 1800 303632 between 9am to 5pm Q&A IBRC liquidation 6 Feb 2013 Note: This Q& A document is provided solely for information purposes. It does not constitute (and shall not be construed as constituting) legal advice. It is also not a

More information

Money Matters: What you need to know about debt. What is debt?

Money Matters: What you need to know about debt. What is debt? What is debt? Debt is a sum of money owed to another person or organization. A debt can be in the form of a: Bank loan Rent arrears Utility bill debts Over draft with bank account Failure to pay council

More information

Firm Registration Form

Firm Registration Form Firm Registration Form Firm Registration Form This registration form should be completed by firms who are authorised and regulated by the Financial Conduct Authority. All sections of this form are mandatory.

More information

Debt Options Information guide

Debt Options Information guide Debt Options Information guide Debt & Money Advice Support CIC (DMAS CIC) is authorised and regulated by the Financial Conduct Authority FRN: 631799. A company registered in England & Wales 9203918. 1

More information

A guide to creditors voluntary liquidations

A guide to creditors voluntary liquidations A guide to creditors voluntary liquidations Introduction A company can be put into liquidation voluntarily, at the instigation of its directors, or compulsorily, by order of the Court. The effect, in either

More information

Revenue and Benefit Service

Revenue and Benefit Service Revenue and Benefit Service Draft Write Off Policy ~ 1 ~ WRITE OFF POLICY Introduction This document sets out the procedure to be followed when writing off irrecoverable amounts (including credit balances)

More information

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009)

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) 3 [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) PASSED by the National Parliament

More information

Insolvency (Amendment) Bill

Insolvency (Amendment) Bill Bill [AS INTRODUCED] CONTENTS Provisions relating to communication 1. Attendance at meetings and use of websites 2. References to things in writing Requirements relating to meetings 3. Removal of requirement

More information

Personal Insolvency Act 2012 A changing landscape for banks in Ireland

Personal Insolvency Act 2012 A changing landscape for banks in Ireland www.pwc.ie Personal Insolvency Act 2012 A changing landscape for banks in Ireland We ve identified the implications of the changing landscape for banks. This document will help banks to assess their readiness

More information

DRN. Debt Solutions Scenarios Pack

DRN. Debt Solutions Scenarios Pack DRN Debt Solutions Scenarios Pack TO HELP EXPLAIN SOME OF THE CONCEPTS CONTAINED IN THE PERSONAL INSOLVENCY LEGISLATION, THE INSOLVENCY SERVICE OF IRELAND HAS CREATED SOME POSSIBLE SCENARIOS TO ILLUSTRATE

More information

In Debt. Dealing with your creditors

In Debt. Dealing with your creditors In Debt Dealing with your creditors 0 This guide has been produced by the Insolvency Service with the help and support of the IVA Standing Committee. The Insolvency Service would like to thank the members

More information

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS CONTENTS PREFACE 1 1. Introduction 2 2. When is a Company Insolvent under Cayman Islands Law? 2 3. Formal Insolvency Procedures 2 4. Creditors Rights 4 5. Voidable

More information

September 2015. Scenario 9 & 10. PIA comparison with Bankruptcy. Page 1 of 21

September 2015. Scenario 9 & 10. PIA comparison with Bankruptcy. Page 1 of 21 September 2015 Scenario 9 & 10 PIA comparison with Bankruptcy Page 1 of 21 The case studies contained within this publication are primarily designed to assist Personal Insolvency Practitioners (PIPs) prepare

More information

Glossary of Terms: Insolvency and Restructuring

Glossary of Terms: Insolvency and Restructuring Glossary of Terms: Insolvency and Restructuring Administration Administration is the court supervised process by which a Licensed Insolvency Practitioner called an administrator takes control of an insolvent

More information

Directors Duties when a Company is facing Insolvency

Directors Duties when a Company is facing Insolvency Directors Duties when a Company is facing Insolvency 0 DIRECTORS DUTIES WHEN A COMPANY IS FACING INSOLVENCY Introduction It is well established that the fiduciary and statutory duties of directors are

More information

Insolvency and Liquidation

Insolvency and Liquidation Insolvency and Liquidation There are many different ways of dealing with company debt. In most cases, an authorised insolvency practitioner will be appointed to manage a company s affairs once insolvency

More information

Liquidating an insolvent Jersey company

Liquidating an insolvent Jersey company Liquidating an insolvent Jersey company DECEMBER 2011 For more briefings visit mourantozannes.com This briefing is only intended to give a summary and general overview of the subject matter. It is not

More information

Liquidations and Receiverships

Liquidations and Receiverships Liquidations and Receiverships Legal Guide 2 0 1 5 NEW PLYMOUTH 1 Dawson Street Private Bag 2013 Phone (06) 768-3700 Fax (06) 768-3701 INGLEWOOD 92 Rata Street PO Box 28 Phone (06) 756-8118 Fax (06) 768-3701

More information

DSA. Debt Solutions Scenarios Pack

DSA. Debt Solutions Scenarios Pack DSA Debt Solutions Scenarios Pack TO HELP EXPLAIN SOME OF THE CONCEPTS CONTAINED IN THE PERSONAL INSOLVENCY LEGISLATION, THE INSOLVENCY SERVICE OF IRELAND HAS CREATED SOME POSSIBLE SCENARIOS TO ILLUSTRATE

More information

TIPS FOR DIRECTORS FACING BUSINESS DIFFICULTIES

TIPS FOR DIRECTORS FACING BUSINESS DIFFICULTIES TIPS FOR DIRECTORS FACING BUSINESS DIFFICULTIES The rapid downturn in the economy means company directors are faced with new challenges, possibly on a greater scale and more complex than ever before. Directors

More information

Comparison of a Debtor s Options

Comparison of a Debtor s Options Comparison of a Debtor s Options Individual Voluntary Arrangement (IVA) An IVA is an alternative to bankruptcy. It is a contract between a debtor and his/her creditors on which creditors will reasonably

More information

EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009. 2009 No.

EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009. 2009 No. EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009 2009 No. 1553 1. This explanatory memorandum has been prepared by the Department for

More information

Guide to Personal Insolvency in the Republic of Ireland

Guide to Personal Insolvency in the Republic of Ireland Guide to Personal Insolvency in the Republic of Ireland Contents Disclaimer This Publication contains general information about Personal Insolvency in the Republic of Ireland. It is based on our understanding

More information

A Debtor s Guide to the role of a PIP

A Debtor s Guide to the role of a PIP A Debtor s Guide to the role of a A guide to the role of your professional advisor for a DSA or a PIA Insolvency Service of Ireland nseirbhís Dócmhainneachta na héirea n ISI Tackling problem debt together

More information

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Client Asset Requirements Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Instructions Paper November 2007 1 Contents 1 Contents 2 Introduction 1 2.1 Scope

More information

Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately

Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately Rule 6.1 Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately Form 6.1 Notes for Creditor If the creditor is entitled to the debt by way of assignment,

More information

IMPORTANT THIS GUIDANCE SHOULD ONLY BE USED FOR PROGRAMMES FROM 1 APRIL 2015. Debt Arrangement Scheme (DAS) Business DAS

IMPORTANT THIS GUIDANCE SHOULD ONLY BE USED FOR PROGRAMMES FROM 1 APRIL 2015. Debt Arrangement Scheme (DAS) Business DAS Debt Arrangement Scheme (DAS) Business DAS Guidance for Payments Distributors Relevant Legislation The Scottish Parliament approved the Debt Arrangement Scheme (DAS) by passing the Debt Arrangement and

More information

Australia. Bankruptcy or Debt Agreement?

Australia. Bankruptcy or Debt Agreement? Australia Bankruptcy or Debt Agreement? There are many reasons why women arrive in a situation of debt they cannot pay. Whatever the reasons that this has occurred the important thing is to be doing something

More information

DEBT. Law guide - Debt, bankruptcy & liquidation

DEBT. Law guide - Debt, bankruptcy & liquidation DEBT Law guide - Debt, bankruptcy & liquidation Contents Bankruptcy... 3 Arrangements with debtor... 6 Alternatives to bankruptcy... 8 Liquidation... 10 Distribution of assets... 11 Alternatives to liquidation...

More information

Forms of Corporate Insolvency

Forms of Corporate Insolvency Forms of Corporate Insolvency There are five categories of insolvency procedure for companies: Company Voluntary Arrangement; Administration; Administrative Receivership; Creditors Voluntary Liquidation;

More information

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY FACT SHEET NO. 10 NORTHERN IRELAND What is bankruptcy? Bankruptcy is a way of dealing with debts that you cannot pay.

More information

INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY

INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY EK SERVICES POLICIES AND PROCEDURES INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY EK Services Insolvency & Charging Order Policy 1 Contents 1. Introduction and purpose of policy document

More information