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Personal Insolvency Act 2012

In short

This law, the Personal Insolvency Act 2012, establishes a framework for individuals to deal with their debts through various insolvency arrangements and amends existing bankruptcy law. It aims to provide options for debtors facing financial difficulties.

What it regulates

Who it concerns

Key points

Legal text

Personal Insolvency Act 2012 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.

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  3. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2012 Personal Insolvency Act 2012 Personal Insolvency Act 2012 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 ARRANGEMENT OF SECTIONS PART 1 Preliminary and General Section 1. 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. 16. Reports by the Insolvency Service. 17. Accounts and audit. 18. Appearance before Committee of Dáil Éireann established to examine, etc., appropriation accounts, etc. 19. Appearance before other committees of Houses of Oireachtas. 20. Power to charge and recover fees. 21. Advances by Minister to Insolvency Service. 22. Restriction of Freedom of Information Acts 1997 and 2003. 23. Guidelines on reasonable standard of living, reasonable living expenses for debtors. 24. Insolvency Service may communicate by electronic means. PART 3 Insolvency Arrangements Chapter 1 Debt Relief Notices 25. Interpretation of Chapter 1. 26. Eligibility criteria for a Debt Relief Notice. 27. Initiation of Debt Relief Notice process. 28. Creditor consent required for issue of Debt Relief Notice in respect of excludable debt. 29. Application for Debt Relief Notice. 30. Consideration by Insolvency Service of application under section 29. 31. Referral of application to appropriate court for issue of Debt Relief Notice. 32. Contents of Debt Relief Notice. 33. Duties of Insolvency Service on issue of Debt Relief Notice. 34. Duration of Debt Relief Notice. 35. Effect of issue of Debt Relief Notice. 36. General obligations of debtor arising under this Chapter. 37. Payment by specified debtor of portion of specified debts. 38. Treatment by Insolvency Service of sums received under section 36 or 37. 39. Power to amend Debt Relief Notice. 40. Investigation by Insolvency Service. 41. Application by Insolvency Service for direction of court. 42. Application by person affected to court. 43. Creditor objection during supervision period. 44. Application by Insolvency Service to have Debt Relief Notice terminated. 45. Effect of termination of Debt Relief Notice. 46. Discharge from specified qualifying debts. 47. Approved intermediaries. Chapter 2 Appointment of personal insolvency practitioner for purposes of Chapter 3 or 4 48. General. 49. Appointment of personal insolvency practitioner. 50. Completion of Prescribed Financial Statement. 51. Provisions relating to pension arrangements. 52. Personal insolvency practitioner to advise debtor. 53. Instruction by debtor to personal insolvency practitioner to make proposal for arrangement. 54. Statement to be prepared by personal insolvency practitioner. Chapter 3 Debt Settlement Arrangements 55. Debt Settlement Arrangement: General Conditions. 56. Debt Settlement Arrangement permitted once only. 57. Debt Settlement Arrangement: Eligibility criteria. 58. Creditor consent required for inclusion of excludable debt in Debt Settlement Arrangement. 59. Debt Settlement Arrangement: Application for protective certificate. 60. Debt Settlement Arrangement: Consideration by Insolvency Service of application for protective certificate. 61. Debt Settlement Arrangement: Referral of application to court for issue of protective certificate. 62. Debt Settlement Arrangement: Effect of issue of protective certificate. 63. Debt Settlement Arrangement: Right of appeal as respects protective certificate. 64. Actions to be taken by personal insolvency practitioner following issue of protective certificate. 65. Mandatory requirements concerning Debt Settlement Arrangement. 66. Debt Settlement Arrangement: Non-exhaustive list of matters for possible inclusion. 67. Preferential debts in Debt Settlement Arrangement. 68. Secured creditors and Debt Settlement Arrangement. 69. Principal private residence in Debt Settlement Arrangement. 70. Debt Settlement Arrangement: Calling of creditors’ meeting. 71. Debt Settlement Arrangement: Documents to be given to creditors and the Insolvency Service when calling a creditors’ meeting. 72. Debt Settlement Arrangement: Conduct of creditors’ meeting. 73. Debt Settlement Arrangement: Voting at creditors’ meeting. 74. Debt Settlement Arrangement: Procedures for the conduct of creditors’ meetings. 75. Steps to be taken by personal insolvency practitioner following approval of proposal for Debt Settlement Arrangement. 76. Steps to be taken by Insolvency Service following notification of approval of Debt Settlement Arrangement by personal insolvency practitioner under section 75. 77. Determination of objection lodged under section 75. 78. Coming into effect of Debt Settlement Arrangement. 79. Effect of Debt Settlement Arrangement. 80. Operation of terms of Debt Settlement Arrangement. 81. General duties and obligations of debtor arising under Chapter 3. 82. Variation of a Debt Settlement Arrangement. 83. Application to appropriate court to have Debt Settlement Arrangement terminated. 84. Debt Settlement Arrangement deemed to have failed after 6 month arrears default. 85. Effect of premature termination of Debt Settlement Arrangement on debts. 86. Successful completion of Debt Settlement Arrangement. 87. Grounds of challenge by creditor to coming into effect of Debt Settlement Arrangement. 88. Debt Settlement Arrangement: Excessive pension contributions. Chapter 4 Personal Insolvency Arrangements 89. Personal Insolvency Arrangement: General Conditions. 90. Personal Insolvency Arrangement permitted once only. 91. Eligibility criteria for a Personal Insolvency Arrangement. 92. Creditor consent required for inclusion of excludable debt in Personal Insolvency Arrangement. 93. Application for protective certificate. 94. Consideration by Insolvency Service of application for protective certificate. 95. Referral of application to court for issue of protective certificate. 96. Effect of issue of protective certificate. 97. Right of appeal as respects protective certificate. 98. Actions to be taken by personal insolvency practitioner following issue of protective certificate. 99. Mandatory requirements concerning Personal Insolvency Arrangement. 100. Non-exhaustive list of options as respects payments for inclusion in Personal Insolvency Arrangement. 101. Preferential debts in Personal Insolvency Arrangement. 102. Secured creditors and Personal Insolvency Arrangement. 103. Protections for secured creditors in Personal Insolvency Arrangement. 104. Principal private residence in Personal Insolvency Arrangement. 105. Valuation of security. 106. Calling of creditors’ meeting. 107. Documents to be given to creditors and the Insolvency Service when summoning a creditors’ meeting. 108. Voting rights at creditors’ meetings. 109. Conduct of creditors’ meeting for consideration of proposed Personal Insolvency Arrangement. 110. Proportion of creditors required to approve Personal Insolvency Arrangement. 111. Procedures for the conduct of creditors meetings. 112. Steps to be taken by personal insolvency practitioner following approval of proposal for Personal Insolvency Arrangement. 113. Steps to be taken by Insolvency Service following notification of approval of Personal Insolvency Arrangement by personal insolvency practitioner under section 112. 114. Determination of objection lodged under section 112. 115. Coming into effect of Personal Insolvency Arrangement. 116. Effect of Personal Insolvency Arrangement. 117. Operation of terms of Personal Insolvency Arrangement. 118. General duties and obligations of debtor arising under Chapter 4. 119. Variation of a Personal Insolvency Arrangement. 120. Grounds of challenge by creditor to coming into effect or variation of Personal Insolvency Arrangement. 121. Excessive pension contributions. 122. Application to appropriate court to have Personal Insolvency Arrangement terminated. 123. Personal Insolvency Arrangement deemed to have failed after 6 month arrears default. 124. Effect of premature termination of Personal Insolvency Arrangement on debts. 125. Successful completion of Personal Insolvency Arrangement. Chapter 5 Offences under Part 3 126. False representations and omissions. 127. Breach of obligation under Part 3. 128. Concealment or falsification of documents. 129. Fraudulent disposal of property. 130. Obtaining credit or engaging in business by a debtor while insolvency arrangement is in effect. 131. Unauthorised person acting as approved intermediary. 132. Prosecution of offences. Chapter 6 Miscellaneous 133. Register of Insolvency Arrangements. 134. Giving of notices. 135. Set-off to be applied. 136. Prescribed Financial Statement. 137. Guidelines and codes of practice. 138. Application of laws in relation to netting agreements, etc. 139. Debts in currency other than currency of the State. 140. Transmission of documents by electronic means. 141. Review of operation of Part 3. PART 4 Bankruptcy 142. Amendment of section 3 of Bankruptcy Act 1988. 143. Amendment of section 7 of Bankruptcy Act 1988. 144. Amendment of section 8 of Bankruptcy Act 1988. 145. Amendment of section 11 of Bankruptcy Act 1988. 146. Amendment of section 12 of Bankruptcy Act 1988. 147. Amendment of section 14 of Bankruptcy Act 1988. 148. Amendment of section 15 of Bankruptcy Act 1988. 149. Amendment of section 39 of Bankruptcy Act 1988. 150. Insertion into Bankruptcy Act 1988 of new sections 44A and 44B. 151. Amendment of section 45 of Bankruptcy Act 1988. 152. Amendment of section 57 of Bankruptcy Act 1988. 153. Amendment of section 58 of Bankruptcy Act 1988. 154. Amendment of section 59 of Bankruptcy Act 1988. 155. Insertion into Bankruptcy Act 1988 of new section 65A. 156. Amendment of section 81 of Bankruptcy Act 1988. 157. Amendment of section 85 of Bankruptcy Act 1988. 158. Amendment of section 123 of Bankruptcy Act 1988. PART 5 Regulation of Personal Insolvency Practitioners Chapter 1 General Provisions 159. Interpretation (Part 5). 160. Unauthorised person acting as personal insolvency practitioner. 161. Regulations that may be made by Insolvency Service regarding personal insolvency practitioners. 162. Register of Personal Insolvency Practitioners. 163. Application for authorisation to carry on practice as personal insolvency practitioner. 164. Authorisation to carry on practice as personal insolvency practitioner or refusal to authorise. 165. Notification to applicant of refusal to authorise, etc. 166. Renewal of authorisation to carry on practice as a personal insolvency practitioner. 167. Notification to applicant of refusal to renew authorisation, etc. 168. Provision of information by Garda Síochána and Central Bank. 169. Appeal to Circuit Court against decision of Insolvency Service. Chapter 2 General Obligations of Personal Insolvency Practitioners 170. Retention of records. 171. Professional indemnity insurance. 172. Fees and charges by personal insolvency practitioners. Chapter 3 Accounts and Related Matters 173. Keeping and preservation by personal insolvency practitioner of accounts and records. 174. Control of banking accounts or assets of personal insolvency practitioners. 175. Power of Insolvency Service to deal with documents. Chapter 4 Complaints, Investigations and Sanctions 176. Inspectors. 177. Panel of persons to act as members of Complaints Committee. 178. Complaints against personal insolvency practitioners. 179. Circumstances in which application may be made to High Court for immediate suspension of authorisation, etc. 180. Investigations. 181. Measures to assist inspector in carrying out investigation. 182. Preparation of report by inspector and consideration of matter by the Complaints Committee. 183. Appeal to High Court against determination of Complaints Committee. 184. Matters to be considered in determining sanctions to be imposed. 185. Publication of sanctions, etc. 186. Restriction of Data Protection Act 1988. PART 6 Specialist Judges of Circuit Court 187. Amendment of Courts (Establishment and Constitution) Act 1961. 188. Amendment of section 17 of Courts (Supplemental Provisions) Act 1961. 189. Amendment of Courts (Supplemental Provisions) Act 1961. 190. Amendment of section 46 of Courts (Supplemental Provisions) Act 1961. 191. Number of specialist judges. 192. Amendment of Courts and Court Officers Act 1995. 193. Amendment of Courts Act 1977. 194. Amendment of section 10 of Courts of Justice Act 1947. 195. Amendment of section 38 of Courts of Justice Act 1924. 196. Amendment of section 66 of Courts of Justice Act 1924. 197. Amendment of Courts Act 1973. 198. Amendment of Law Reform Commission Act 1975. 199. Continuity of administration of justice not to be affected. SCHEDULE 1 Repeals SCHEDULE 2 Provisions applicable to Oral Hearings conducted pursuant to SECTIONS 181 and 182 . PART 1 Oral Hearing conducted by inspector pursuant to SECTION 181

(15)PART 2 Oral Hearing conducted by Complaints Committee pursuant to SECTION 182
(6)SCHEDULE 3 Complaints Panel and Complaints Committees Acts Referred to Asset Covered Securities Act 2001 2001, No. 47 Bankruptcy Act 1988 1988, No. 27 Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 2010, No. 24 Comptroller and Auditor General (Amendment) Act 1993 1993, No. 8 Consumer Credit Act 1995 1995, No. 24 Courts Act 1973 1973, No. 26 Courts Act 1977 1977, No. 11 Courts and Court Officers Act 1995 1995, No. 31 Courts and Court Officers Act 2002 2002, No. 15 Courts and Court Officers Act 2009 2009, No. 36 Courts (Establishment and Constitution) Act 1961 1961, No. 39 Courts of Justice Act 1924 1924, No. 10 Courts of Justice Act 1947 1947, No. 25 Courts (Supplemental Provisions) Act 1961 1961, No 39 Credit Union Act 1997 1997, No. 15 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) Act 1976 1976, No. 11 Financial Emergency Measures in the Public Interest (Amendment) Act 2011 2011, No. 39 Freedom of Information Acts 1997 and 2003 Law Reform Commission Act 1975 1975, No. 3 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 and Appointments) Act 2004 2004, No. 3 Public Service Superannuation (Miscellaneous Provisions) Act 2004 2004, No. 7 Social Welfare Consolidation Act 2005 2005, No. 26 Statistics Act 1993 1993, No. 21 Statute of Limitations 1957 1957, No. 6 Statutory Declarations Act 1938 1938, No. 37 Taxes Consolidation Act 1997 1997, No. 39 Number 44 of 2012 PERSONAL INSOLVENCY ACT 2012 AN ACT TO AMEND THE LAW RELATING TO INSOLVENCY, TO AMEND THE BANKRUPTCY ACT 1988, TO PROVIDE FOR THE ESTABLISHMENT AND FUNCTIONS OF A BODY TO BE KNOWN AS SEIRBHÍS DÓCMHAINNEACHTA NA hÉIREANN OR, IN THE ENGLISH LANGUAGE, THE INSOLVENCY SERVICE OF IRELAND, AND, IN PARTICULAR, IN THE INTERESTS OF THE COMMON GOOD (INCLUDING THE STABILITY OF THE FINANCIAL SYSTEM IN THE STATE)AND HAVING REGARD TO THE FOLLOWING OBJECTIVES— (a)THE NEED TO AMELIORATE THE DIFFICULTIES EXPERIENCED BY DEBTORS IN DISCHARGING THEIR INDEBTEDNESS DUE TO INSOLVENCY AND THEREBY LESSEN THE ADVERSE CONSEQUENCES FOR ECONOMIC ACTIVITY IN THE STATE, (b)THE NEED TO ENABLE CREDITORS TO RECOVER DEBTS DUE TO THEM BY INSOLVENT DEBTORS TO THE EXTENT THAT THE MEANS OF THOSE DEBTORS REASONABLY PERMITS, IN AN ORDERLY AND RATIONAL MANNER, AND (c)THE NEED TO ENABLE INSOLVENT DEBTORS TO RESOLVE THEIR INDEBTEDNESS (INCLUDING BY DETERMINING THAT DEBTS STAND DISCHARGED IN CERTAIN CIRCUMSTANCES) IN AN ORDERLY AND RATIONAL MANNER WITHOUT RECOURSE TO BANKRUPTCY, AND TO THEREBY FACILITATE THE ACTIVE PARTICIPATION OF SUCH PERSONS IN ECONOMIC ACTIVITY IN THE STATE, TO PROVIDE FOR ADDITIONAL MECHANISMS AND ARRANGEMENTS RELATING TO INSOLVENCY TO FACILITATE THE ACHIEVEMENT OF THOSE OBJECTIVES, TO PROVIDE FOR THE APPOINTMENT, FUNCTIONS, POWERS AND JURISDICTION OF NEW JUDGES OF THE CIRCUIT COURT TO BE STYLED SPECIALIST JUDGES OF THE CIRCUIT COURT AND, FOR THAT PURPOSE, TO AMEND THE COURTS (ESTABLISHMENT AND CONSTITUTION) ACT 1961 AND THE COURTS (SUPPLEMENTAL PROVISIONS) ACT 1961 AND CERTAIN OTHER ENACTMENTS, TO PROVIDE FOR THE REGULATION, SUPERVISION AND DISCIPLINE OF PERSONAL INSOLVENCY PRACTITIONERS, AND TO PROVIDE FOR CONNECTED MATTERS. [26th December, 2012] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART 1 Preliminary and General Short title and commencement. 1.—
(1)This Act may be cited as the Personal Insolvency Act 2012.
(2)This Act shall come into operation on such day or days as may be fixed by order or orders made by the Minister, either generally or by reference to any particular purpose or provision, and different days may be so fixed for different purposes and different provisions. Interpretation. 2.—
(1)In this Act— “appropriate court” shall be construed in accordance with section 5 ; “bankruptcy” shall be construed in accordance with the Bankruptcy Act 1988 ; “bankruptcy payment order” means an order made pursuant to section 85D of the Bankruptcy Act 1988 ; “civil partner”, in relation to a person, means a civil partner within the meaning of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 but does not include a civil partner who is living separately from the person; “connected person”, in relation to a person, shall be construed in accordance with subsection
(2); “creditor”, in relation to a debt, means a natural or legal person to whom a debtor owes that debt or to whom the debtor otherwise has a liability in respect of that debt; “debtor”, in relation to a debt, means a natural person who— (
  1. a)owes a debt to a creditor, or (
  2. b)otherwise has a liability to a creditor; “Debt Settlement Arrangement” means— (
  3. a)an arrangement entered into by a debtor, or (
  4. b)an arrangement for which a proposal is made, under Chapter 3 of Part 3 ; “domestic support order” means— (
  5. a)an order which is an antecedent order for the purposes of the Family Law (Maintenance of Spouses and Children) Act 1976 , (
  6. b)an order which by virtue of any statutory provision is enforceable in the State as if it were an antecedent order under the Family Law (Maintenance of Spouses and Children) Act 1976 , (
  7. c)an order which is an antecedent order within the meaning of section 43 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , and (
  8. d)an order which is an antecedent order for the purposes of sections 176 to 186 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ; “electronic means” includes electrical, digital, magnetic, optical, electromagnetic, biometric and photonic means of transmission of data and other forms of related technology by means of which data is transmitted; “establishment day” means the day appointed under section 7 ; “excludable debt”, in relation to a debtor, means any: (
  9. a)liability of the debtor arising out of any tax, duty, levy or other charge of a similar nature owed or payable to the State; (
  10. b)amount payable by the debtor under the Local Government (Charges) Act 2009 ; (
  11. c)amount payable by the debtor under the Local Government (Household Charge) Act 2011 ; (
  12. d)liability of the debtor arising out of any rates due to the local authority (within the meaning of the Local Government Act 2001 ); (
  13. e)debt or liability of the debtor in respect of moneys advanced to the debtor by the Health Service Executive under the Nursing Homes Support Scheme Act 2009 ; (
  14. f)debt due by the debtor to any owners’ management company in respect of annual service charges under section 18 of the Multi-Unit Developments Act 2011 or contributions due under section 19 of that Act; (
  15. g)debt or liability of the debtor arising under the Social Welfare Consolidation Act 2005 ; “excluded debt”, in relation to a debtor, means any: (
  16. a)liability of the debtor arising out of a domestic support order; (
  17. b)liability of the debtor arising out of damages awarded by a court (or another competent authority) in respect of personal injuries or wrongful death arising from the tort of the debtor; (
  18. c)debt or liability of the debtor arising from a loan (or forbearance of a loan) obtained through fraud, misappropriation, embezzlement or fraudulent breach of trust; (
  19. d)debt or liability of the debtor arising by virtue of a court order made under the Proceeds of Crime Acts 1996 and 2005 or by virtue of a fine ordered to be paid by a court in respect of a criminal offence; “insolvency arrangement” means a Debt Relief Notice, Debt Settlement Arrangement or a Personal Insolvency Arrangement; “Insolvency Service” means the Insolvency Service of Ireland established by section 8 ; “insolvent”, in relation to a debtor, shall be construed as meaning that the debtor is unable to pay his or her debts in full as they fall due; “Minister” means the Minister for Justice and Equality; “personal data” has the meaning it has in the Data Protection Acts 1988 and 2003; “Personal Insolvency Arrangement” means— (
  20. a)an arrangement entered into by a debtor, or (
  21. b)an arrangement for which a proposal is made, under Chapter 4 of Part 3 ; “personal insolvency practitioner” means a person authorised under Part 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 debtor ordinarily resides and includes— (
  22. a)any building or structure, or (
  23. b)any vehicle or vessel (whether mobile or not), together with any garden or portion of ground attached to and occupied with the dwelling or otherwise required for the amenity or convenience of the dwelling; “protective certificate” means a certificate issued by the appropriate court 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 of the spouse or civil partner; “relevant pension arrangement” means: (
  24. a)a retirement benefits scheme, within the meaning of section 771 of the Taxes Consolidation Act 1997 , for the time being approved by the Revenue Commissioners for the purposes of Chapter 1 of Part 30 of that Act; (
  25. b)an annuity contract or a trust scheme or part of a trust scheme for the time being approved by the Revenue Commissioners under section 784 of the Taxes Consolidation Act 1997 ; (
  26. c)a PRSA contract, within the meaning of section 787A of the Taxes Consolidation Act 1997 , in respect of a PRSA product, within the meaning of that section; (
  27. d)a qualifying overseas pension plan within the meaning of section 787M of the Taxes Consolidation Act 1997 ; (
  28. e)a public service pension scheme within the meaning of section 1 of the Public Service Superannuation (Miscellaneous Provisions) Act 2004 ; (
  29. f)a statutory scheme, within the meaning of section 770
(1)of the Taxes Consolidation Act 1997 , other than a public service pension scheme referred to in paragraph (e); (g) such other pension arrangement as may be prescribed by the Minister, following consultation with the Ministers for Finance, Social Protection and Public Expenditure and Reform; “secured creditor”, in relation to a debt, means a creditor of the debtor who holds, in respect of his or her debt, security (other than a guarantee or pledge referred to in section 35
(8)of the Credit Union Act 1997 ) in or over property of the debtor; “secured debt” means a debt the payment for which is secured by security in or over any asset or property of any kind; “security” means, in relation to a debt, any means of securing payment of the debt and includes— (
  1. a)a mortgage, judgment mortgage, charge, lien, pledge, hypothecation or other security interest or encumbrance or collateral in or over any property (whether real or personal and including choses-in-action), (
  2. b)an assignment by way of security, and (
  3. c)an undertaking or agreement by any person (including a solicitor) to give or create a security interest in property; “solvent”, with respect to a debtor, means that the debtor is not insolvent; “specified creditor”, in relation to a protective certificate, means a person specified in a protective certificate as being the person to whom a particular debt is owed; “specified debt”, in relation to a protective certificate, means a debt that is specified in that protective certificate as being subject to that certificate; “spouse”, in relation to a person, does not include a spouse who is living separately from the person; “unsecured creditor”, in relation to a debt, means any creditor who is not a secured creditor; “unsecured debt” means a debt in respect of which payment is not secured by security.
(2)Any question whether a person is connected with another shall be determined in accordance with the following provisions of this paragraph (any provision that one person is connected with another person being taken to mean also that that other person is connected with the first-mentioned person): (
  1. i)a person is connected with an individual if that person is a relative of the individual; (
  2. ii)a person, in his or her capacity as a trustee of a trust, is connected with an individual who or any of whose children or as respects whom any body corporate which he or she controls is a beneficiary of the trust; (iii) a person is connected with any person with whom he or she is in partnership; (
  3. iv)a company is connected with another person if that person has control of it or if that person and persons connected with that person together have control of it; (
  4. v)any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.
(3)In this Act a reference to an asset includes an interest in an asset and a reference to a liability includes an interest in a liability.
(4)For the purposes of sections 26
(2)(f)(i), 87 (
  1. g)and 120 (g), a debtor enters into a transaction with another person at an undervalue if he or she— (
  2. a)makes a gift to, or otherwise enters into a transaction with, that other person on terms that provide for the debtor to receive no consideration, or (
  3. b)enters into a transaction with that other person, the value of which, in money or money’s worth, is significantly greater than the value, in money or money’s worth, of the consideration provided by that other person.
(5)For the purposes of sections 26
(2)(f)(ii), 87 (
  1. h)and 120 (h), a debtor gives a preference to another person if— (
  2. a)the other person is a creditor of the debtor to whom a debt (other than an excluded debt or an excludable debt) is owed, or is a surety or guarantor for any such debt, and (
  3. b)the debtor does any thing (including the granting of security), or suffers any thing to be done, which has the effect of putting that other person into a position which, in the event that the insolvency arrangement concerned is issued or comes into effect, as the case may be, would be better than the position in which that other person would have been if that thing had not been done or suffered to be done. Regulations and orders. 3.—
(1)The Minister or, as the case may be, the Insolvency Service, may make regulations prescribing any matter or thing which is referred to in this Act as prescribed or to be prescribed.
(2)A regulation under this Act may contain such incidental, supplementary and consequential provisions as the Minister or, as the case may be, the Insolvency Service, considers necessary or expedient for the purposes of the regulations.
(3)Every regulation and order (other than an order referred to in section 1
(2)) made under this Act shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the order or regulation is passed by either such House within the next 21 days on which that House has sat after the order or regulation is laid before it, the order or regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder. Expenses. 4.— The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Public Expenditure and Reform, be paid out of moneys provided by the Oireachtas. Appropriate court. 5.—
(1)In this Act “appropriate court” means— (
  1. a)where the application is made under Chapter 3 or 4 of Part 3 , and the total liabilities of a debtor determined on the basis of the Prescribed Financial Statement completed by the debtor concerned in respect of the application concerned are in excess of €2,500,000, the High Court, and (
  2. b)in any other case, the Circuit Court.
(2)The performance of the functions, and the exercise of the powers and jurisdiction, conferred by this Act on the Circuit Court shall be within the jurisdiction of the circuit of the Circuit Court in which— (
  1. a)the debtor to whom an application under this Act relates is residing at the time of the making of the application or has resided within one year of the time of the making of the application, or (
  2. b)the debtor to whom the application relates has a place of business at the time of the making of the application or has had a place of business within one year of the time of the making of the application.
(3)An application to the Circuit Court under this Act may be made— (
  1. a)in such office of, or attached to, the Circuit Court within the circuit concerned, (
  2. b)in such combined court office (within the meaning of section 14 of the Courts and Court Officers Act 2009 ) within the circuit concerned, or (
  3. c)in such office of the Courts Service, within the circuit concerned, designated by the Courts Service for the purpose of this Act, as may be prescribed by rules of court. Repeals. 6.— The enactments specified in the Schedule are repealed. PART 2 Insolvency Service Establishment day. 7.— The Minister shall, by order, appoint a day to be the establishment day for the purposes of this Act. Establishment of Insolvency Service. 8.—
(1)On the establishment day there shall stand established a body to be known, in the English language, as the Insolvency Service of Ireland or, in the Irish language, as Seirbhís Dócmhainneachta na hÉireann to perform the functions conferred on it by or under this Act.
(2)The Insolvency Service shall be a body corporate with perpetual succession and, without prejudice to the generality of the foregoing, may sue and be sued in its corporate name.
(3)The Insolvency Service shall— (
  1. a)subject to this Act, be independent in the exercise of its functions under this Act, and (
  2. b)have all powers that are necessary or expedient for, or incidental to, the performance of those functions.
(4)The seal of the Insolvency Service may be authenticated by— (
  1. a)the signature of the Director, and (
  2. b)the signature of a member of the staff of the Insolvency Service authorised by the Director to act in that behalf.
(5)Judicial notice shall be taken of the seal of the Insolvency Service and, accordingly, every document— (
  1. a)purporting to be a document made by the Insolvency Service, and (
  2. b)purporting to be sealed with the seal of the Insolvency Service authenticated in accordance with subsection
(4), shall be received in evidence and be deemed to be such document without further proof unless the contrary is proved.
(6)Any contract or instrument which, if entered into or executed by an individual, would not require to be under seal may be entered into or executed on behalf of the Insolvency Service by the Director or any person generally or specially authorised by the Director in that behalf. Functions of Insolvency Service. 9.—
(1)Subject to this Act, the principal functions of the Insolvency Service shall be to— (
  1. a)monitor the operation of the arrangements relating to personal insolvency provided for in this Act, (
  2. b)consider applications for Debt Relief Notices in accordance with Chapter 1 of Part 3 , (
  3. c)process applications for protective certificates in accordance with Chapter 3 or 4 of Part 3 , (
  4. d)maintain the Registers established under section 133 , (
  5. e)provide information to the public on the working of this Act, (
  6. f)advise the Minister on any matter relating to its functions, (
  7. g)authorise persons to perform the functions of an approved intermediary under Chapter 1 of Part 3 , (
  8. h)in accordance with Part 5 — (
  9. i)authorise individuals to carry on practice as personal insolvency practitioners, (
  10. ii)supervise and regulate persons practising as personal insolvency practitioners, (iii) perform such functions as are assigned to the Insolvency Service under that Part, (
  11. i)prepare and issue guidelines as to what constitutes a reasonable standard of living and reasonable living expenses under section 23 , (
  12. j)arrange for the provision of such education and training, in relation to the performance by them of their functions under this Act, of approved intermediaries, personal insolvency practitioners and other persons, as it thinks fit, (
  13. k)contribute to the development of policy in the area of personal insolvency, and (
  14. l)carry out any other duties and exercise any other powers assigned to it by or under this Act.
(2)The Insolvency Service may disseminate, to such extent and in such manner as it considers appropriate, information relating to the services it provides under this Act.
(3)The Insolvency Service may, subject to this Act, do anything which it considers necessary or expedient to enable it to perform its functions.
(4)Any function of the Insolvency Service may, without prejudice to its general responsibilities under this Act, be performed through or by the Director or any member of its staff duly authorised in that behalf by the Director.
(5)The Director or a member of staff of the Insolvency Service who performs any of its functions is presumed in any proceedings to have been authorised by it to do so on its behalf, unless the contrary is shown. Composition of Insolvency Service. 10.— The Insolvency Service shall consist of— (a) the Director of the Insolvency Service appointed under section 11 , and (b) such members of staff of the Insolvency Service appointed under this Part. Director. 11.—
(1)(
  1. a)There shall be a Director of the Insolvency Service who shall be known, and is referred to in this Act, as the “Director”. (
  2. b)Subject to subsection
(13), the Director shall hold office for such period, not exceeding 5 years from the date of his or her appointment under this section, as may be determined by the Minister. (c) A person who has held office as Director shall be eligible for re-appointment but shall not hold office for periods the aggregate of which exceeds 10 years.
(2)Subject to subsections
(12)and
(13), the Director shall— (
  1. a)be appointed by the Minister on the recommendation of the Director of the Public Appointments Service after a competition for that purpose under section 47 of the Public Service Management (Recruitment and Appointments) Act 2004 has been held on behalf of the Minister, and (
  2. b)have the appropriate experience, qualifications, training and expertise for the appointment.
(3)The Director shall— (
  1. a)manage and control generally the Insolvency Service’s staff, administration and business, (
  2. b)be responsible to the Minister for the performance of his or her functions, and (
  3. c)perform such other functions (if any) as may be required by the Minister or as may be authorised under this Act.
(4)The Director may be removed or suspended from office by the Minister for stated reasons.
(5)The Director shall provide the Minister with such information, including financial information, in respect of the performance of the Director’s functions as the Minister may require.
(6)The Director shall not hold any other office or position in respect 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 specify may, with the consent of the Minister, be performed by such member or members of the staff of the Insolvency Service as the Director may authorise for that purpose, and that member or those members of staff shall be accountable to the Director for the performance of the functions so delegated.
(8)The Director shall be accountable to the Minister for the performance of functions delegated by him or her in accordance with subsection
(7).
(9)The Director may, with the consent of the Minister in writing, revoke a delegation made in accordance with this section.
(10)The functions referred to in subsection
(7)do not include a function delegated by the Minister to the Director subject to a condition that the function shall not be delegated by the Director to anyone else.
(11)If the Director— (
  1. a)dies, resigns or is removed from office, or (
  2. b)is for any reason temporarily unable to continue to perform his or her functions, the Minister may designate such member or members of the staff of the Insolvency Service as he or she considers appropriate to perform the functions of the Director until— (
  3. i)in the circumstances mentioned in paragraph (a), an appointment is made in accordance with subsection
(2), (ii) in the circumstances mentioned in paragraph (b), the Director is able to resume the performance of his or her functions, or (iii) the Minister decides to revoke or alter a designation made under this subsection.
(12)The Minister may, before the establishment day, designate a person to be appointed Director.
(13)If, immediately before the establishment day, a person stands designated by the Minister under subsection
(12)— (
  1. a)the Minister shall appoint that person to be the first Director, and (
  2. b)for the purposes of subsection
(1)(b), the date of that person’s designation under subsection
(12)shall be deemed to be the date of his or her appointment under this section. Staff of Insolvency Service. 12.—
(1)The Minister may, after consultation with the Insolvency Service, appoint such number of persons to be members of the staff of the Insolvency Service as may be approved by the Minister for Public Expenditure and Reform.
(2)The Minister shall, after consultation with the Insolvency Service and with the consent of the Minister for Public Expenditure and Reform, determine the grades of the staff of the Insolvency Service and the numbers of staff in each grade.
(3)Each appointment under this section shall be— (
  1. a)on such terms and conditions relating to remuneration as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine, or (
  2. b)on such other terms and conditions as may be determined by the Insolvency Service and approved by the Minister with the consent of the Minister for Public Expenditure and Reform. Superannuation. 13.—
(1)The Insolvency Service shall, as soon as may be after the establishment day, with the approval of the Minister and the consent of the Minister for Public Expenditure and Reform, make a scheme or schemes for the granting of superannuation benefits to or in respect of the Director and such of its staff as it thinks fit.
(2)A scheme under this section shall fix the time and conditions of retirement of all persons to or in respect of whom superannuation benefits are payable under the scheme or schemes and different times and conditions may be fixed in respect of different classes of persons.
(3)The Insolvency Service may, with the approval of the Minister and the consent of the Minister for Public Expenditure and Reform, make a scheme amending a scheme under this section including a scheme under this subsection.
(4)A scheme under this section shall, if approved by the Minister with 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 for appeals from a decision relating to a superannuation benefit under the scheme.
(6)If any dispute arises as to the claim of any person to, or the amount of, any superannuation benefit payable pursuant to a scheme or schemes under this section, such dispute shall be submitted to the Minister who shall refer it to the Minister for Public Expenditure and Reform, whose decision shall be final.
(7)No superannuation benefits shall be granted by the Insolvency Service to or in respect of a person on ceasing to be the Director or a member of the staff of the Insolvency Service otherwise than— (
  1. a)in accordance with a scheme or schemes under this section, or (
  2. b)with the approval of the Minister and the consent of the Minister for Public Expenditure and Reform.
(8)A scheme under this section shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the scheme is passed by either such House within the next 21 days on which that House has sat after the scheme is laid before it, the scheme shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
(9)Subsection
(8)shall, with all necessary modifications, apply to an amendment to a scheme under this section as it applies to a scheme under this section.
(10)In this section— “amending”, in relation to a scheme under this section, includes revoking the scheme; “superannuation benefit” means any pension, gratuity or other allowance payable to or in respect of a person ceasing to be the Director or a member of the staff of the Insolvency Service. Strategic plans. 14.—
(1)The Insolvency Service shall, as soon as practicable after the establishment day and, in any case, within 6 months after that day, and thereafter within 6 months before each third anniversary of the establishment day, prepare and submit to the Minister, for approval by the Minister with or without amendment, a strategic plan for the Insolvency Service for the ensuing 3 year period.
(2)A strategic plan shall— (
  1. a)comply with any directions issued from time to time by the Minister in respect of the form and manner of the plan’s preparation, (
  2. b)set out the key objectives, outputs and related strategies of the Insolvency Service, including the use of resources, and (
  3. c)have regard to the need to ensure the most beneficial, effective and efficient use of the Insolvency Service’s resources.
(3)The Minister shall, as soon as practicable after the strategic plan has been so approved, cause a copy of the strategic plan to be laid before each House of the Oireachtas. Business plan. 15.—
(1)Subject to this section, the Insolvency Service shall, in each year— (
  1. a)prepare and adopt a business plan in respect of that year or of such other period as may be determined by the Minister, and (
  2. b)submit the plan to the Minister.
(2)A business plan shall— (
  1. a)indicate the activities of the Insolvency Service for the period to which the business plan relates, (
  2. b)contain estimates of the number of employees of the Insolvency Service for the period and the business to which the plan relates, and (
  3. c)accord with policies and objectives of the Minister and the Government as they relate to the functions of the Insolvency Service.
(3)In preparing the business plan, the Insolvency Service shall have regard to the strategic plan in operation at that time approved under section 14 .
(4)The Insolvency Service shall submit to the Minister with a business plan a statement of its estimate of the income and expenditure relating to the plan that is consistent with the moneys estimated to be available to the Insolvency Service for the period to which the business plan relates. Reports by the Insolvency Service. 16.—
(1)Not later than 4 months after the end of each financial year, the Insolvency Service shall make a written report (in this section referred to as the “annual report”) to the Minister on the performance of the functions of the Insolvency Service during that year.
(2)The annual report submitted under subsection
(1)shall be in such form and shall include information in respect of such matters as the Insolvency Service thinks appropriate or as the Minister may direct.
(3)The Insolvency Service— (
  1. a)may make any other reports that it considers appropriate for drawing to the Minister’s attention matters relating to the functions of the Insolvency Service that have come to its notice and that, in its opinion, should, because of their gravity or other exceptional circumstances, be the subject of a special report to the Minister, and (
  2. b)shall make a report on any matter if so requested by the Minister.
(4)The Insolvency Service shall give to the Minister such other information as the Minister may require in respect of— (
  1. a)the performance by the Insolvency Service of its functions and its policies in respect of such performance, (
  2. b)any specific document or account prepared by it, or (
  3. c)the annual report or any report referred to in subsection
(3).
(5)For the purposes of subsection
(1), the period between the establishment day and the following 31 December shall be deemed to be a financial year.
(6)Not later than 2 months after receiving an annual report submitted under subsection
(1), the Minister shall cause a copy of the report to be laid before each House of the Oireachtas.
(7)The Insolvency Service shall publish its annual report in such form and manner as it considers appropriate as soon as practicable after subsection
(6)has been complied with in respect of the report.
(8)The Minister may, if he or she considers it appropriate to do so, cause a copy of a report submitted under subsection
(3)— (
  1. a)to be laid before each House of the Oireachtas, and (
  2. b)where paragraph (
  3. a)has been complied with, published in such form and manner as he or she considers appropriate. Accounts and audit. 17.—
(1)The Insolvency Service shall— (
  1. a)submit estimates of income and expenditure to the Minister in such form, in respect of such periods and at such times as may be specified by the Minister, and (
  2. b)provide to the Minister any information which the Minister may require regarding those estimates and also regarding the proposals and plans of the Insolvency Service in respect of a period specified by the Minister.
(2)The Insolvency Service shall keep in such form and in respect of such accounting periods as may be approved of by the Minister, with the consent of the Minister for Public Expenditure and Reform, all proper and usual accounts of moneys received and spent by the Insolvency Service, including an income and expenditure account and a balance sheet.
(3)(
  1. a)The accounts of the Insolvency Service shall be approved by it as soon as practicable (but not later than 3 months after the end of the accounting period to which they relate) and submitted by it to the Comptroller and Auditor General for audit. (
  2. b)A copy of the accounts and the report of the Comptroller and Auditor General on them shall be presented to the Minister as soon as practicable, and the Minister shall cause a copy of the accounts and report to be laid before each House of the Oireachtas.
(4)(
  1. a)The Insolvency Service, the Director and any relevant member of the staff shall, whenever so required by the Minister, permit any person appointed by the Minister to examine the accounts of the Insolvency Service in respect of any financial year or other period and shall facilitate any such examination, and the Insolvency Service shall pay to the Minister such fee for the examination as may be fixed by the Minister. (
  2. b)In this subsection, “relevant member of the staff” means a member of the staff of the Insolvency Service to whom duties relating to those accounts have been duly assigned. Appearance before Committee of Dáil Éireann established to examine, etc., appropriation accounts, etc. 18.—
(1)The Director shall, whenever required in writing by a Committee of Dáil Éireann established under the Standing Orders of Dáil Éireann to examine and report to Dáil Éireann on the appropriation accounts and reports of the Comptroller and Auditor General, give evidence to that Committee on— (
  1. a)the regularity and propriety of the transactions recorded, or required to be recorded in any book or other record of account subject to audit by the Comptroller and Auditor General that the Insolvency Service is required by this Act to prepare, (
  2. b)the economy and efficiency of the Insolvency Service in the use of resources, (
  3. c)the systems, procedures and practices employed by the Insolvency Service for the purpose of evaluating the effectiveness of its operations, and (
  4. d)any matter affecting the Insolvency Service referred to in a special report of the Comptroller and Auditor General under section 11
(2)of the Comptroller and Auditor General (Amendment) Act 1993 , or any other report of the Comptroller and Auditor General (in so far as the report 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, the Director shall not question or express an opinion on the merits of any policy of the Government or a Minister of the Government or on the merits of the objectives of such policy. Appearance before other committees of Houses of Oireachtas. 19.—
(1)The Director shall, at the request in writing of a Committee, attend before it to give account for the general administration of the Insolvency Service as is required by the Committee and, for that purpose, shall provide the Committee with such information (including documents) as it specifies and as is in the possession of, or is available to, the Director.
(2)The Director is not required to give an account before a Committee of any matter that is or has been or may at a future time be the subject of— (
  1. a)a decision or determination by the Insolvency Service in respect of a particular person, or (
  2. b)proceedings before a court or tribunal in the State.
(3)The Director shall, if of the opinion that subsection
(2)applies to a matter about which he or she is requested to give an account before a Committee, inform the Committee of that opinion and the reasons for the opinion.
(4)The information required under subsection
(3)to be given to the Committee shall be given in writing unless it is given when the Director is before the Committee.
(5)If, on being informed of the Director’s opinion about a matter, the Committee decides not to withdraw its request, the High Court may, on application under subsection
(6), determine whether subsection
(2)applies to the matter.
(6)An application for a determination under subsection
(5)may be made in a summary manner to the High Court by— (
  1. a)the Director not later than 21 days after being informed by the Committee of its decision not to withdraw its request, or (
  2. 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 an account of the matter to which the application relates.
(8)If the High Court determines that subsection
(2)applies to the matter, the Committee shall withdraw its request relating to the matter, but if the High Court determines that subsection
(2)does not apply, the Director shall attend before the Committee to give an account of the matter.
(9)In this section, “Committee” means a committee appointed by either House of the Oireachtas or jointly by both Houses of the Oireachtas (other than the Committee referred to in section 18
(1), the Committee on Members’ Interests of Dáil Éireann or the Committee on Members’ Interests of Seanad Éireann), or a subcommittee of such a committee. Power to charge and recover fees. 20.—
(1)Subject to subsection
(5), the Insolvency Service, with the consent of the Minister, may, and if directed by the Minister to do so and in accordance with the terms of the direction, shall, prescribe by regulations the fees to be paid to it and when they fall due in respect of— (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), the Insolvency Service’s power under that subsection to prescribe fees includes the power to provide for exemptions from the payment of fees, or waiving, remitting or refunding fees (in whole or in part), in different circumstances or classes of circumstances or in different cases or classes of cases.
(3)Fees received under this Act shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Public Expenditure and Reform directs.
(4)The Insolvency Service may recover as a simple contract debt in any court of competent jurisdiction, from a person by whom the fee is payable, any amount due and owing to the Insolvency Service in respect of a fee charged under this section.
(5)In making regulations pursuant to this section the Insolvency Service may have regard to— (
  1. a)the expenses incurred by it, or (
  2. b)the expenses which it is anticipated will be incurred by it, in performing its functions under this Act, so that so much of those expenses as it considers appropriate are recovered from fees to be charged pursuant to such regulations. Advances by Minister to Insolvency Service. 21.— The Minister shall advance to the Insolvency Service out of moneys provided by the Oireachtas such amount or amounts as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine for the purposes of expenditure by the Insolvency Service in the performance of its functions. Restriction of Freedom of Information Acts 1997 and 2003. 22.—
(1)The Freedom of Information Acts 1997 and 2003 do not apply to a record held by the Insolvency Service, unless the record relates to the general administration of the Insolvency Service.
(2)In this section, “record” has the same meaning as in the Freedom of Information Acts 1997 and 2003. Guidelines on reasonable standard of living, reasonable living expenses for debtors. 23.—
(1)The Insolvency Service shall, for the purposes of sections 26 , 65
(4)and 99
(4)and section 85D (as inserted by section 157 ) of the Bankruptcy Act 1988 , prepare and issue guidelines as to what constitutes a reasonable standard of living and reasonable living expenses.
(2)Before issuing guidelines under subsection
(1), the Insolvency Service shall consult with the Minister, the Minister for Finance, the Minister for Social Protection and such other persons or bodies as the Insolvency Service considers appropriate or as the Minister may direct.
(3)In preparing guidelines to be issued under subsection
(1), the Insolvency Service shall have regard to— (
  1. a)such measures and indicators of poverty set out in Government policy publications on poverty and social inclusion as the Insolvency Service considers appropriate, (
  2. b)such official statistics (within the meaning of the Statistics Act 1993 ) and surveys relating to household income and expenditure published by the Central Statistics Office as the Insolvency Service considers appropriate, (
  3. c)the Consumer Price Index (All Items) published by the Central Statistics Office or any equivalent index published from time to time by that Office, (
  4. d)such other information as the Insolvency Service considers appropriate for the performance of its functions under this section, (
  5. e)differences in the size and composition of households, and the differing needs of persons, having regard to matters such as their age, health and whether they have a physical, sensory, mental health or intellectual disability, and (
  6. f)the need to facilitate the social inclusion of debtors and their dependants, and their active participation in economic activity in the State.
(4)Guidelines issued under subsection
(1)may provide examples of— (
  1. a)expenses that may be allowed as reasonable living expenses, and (
  2. b)expenses that may not be allowed as reasonable living expenses.
(5)The Insolvency Service shall make guidelines issued under subsection
(1)available to members of the public on its website.
(6)Subject to subsection
(7), the Insolvency Service shall issue guidelines under subsection
(1)at intervals of such length, not being more than one year, as it considers appropriate.
(7)Failure by the Insolvency Service to comply with subsection
(6)shall not render invalid for the purposes of this Act the guidelines most recently issued by it under this section. Insolvency Service may communicate by electronic means. 24.— Nothing in this Act shall be construed as preventing the Insolvency Service, in the performance of its functions under this Act, from sending or receiving documents or other information, or otherwise communicating, by electronic means. PART 3 Insolvency Arrangements Chapter 1 Debt Relief Notices Interpretation of Chapter 1. 25.— In this Chapter— “Act of 1995” means the Consumer Credit Act 1995 ; “application date” means the date on which an application under section 29 for a Debt Relief Notice is made to the Insolvency Service; “approved intermediary” means a person authorised under section 47 to perform the functions of an approved intermediary under this Chapter; “debt”, in relation to a debtor, means a debt for a liquidated sum that, on the application date, is payable either immediately or at some certain future time within 3 years from that date; “Debt Relief Notice” means a Debt Relief Notice issued under section 31 ; “Debt Relief Notice process” in relation to a debtor, means the process that commences with the submission of a written statement by the debtor under section 27
(1)and which concludes, as the case may be, when— (
  1. a)the debtor’s application for a Debt Relief Notice is withdrawn, deemed to be withdrawn or refused, in accordance with this Chapter, or (
  2. b)the Debt Relief Notice issued in relation to that debtor ceases to have effect in accordance with this Chapter; “qualifying debt” in relation to a debtor, means a debt other than an excluded debt and— (
  3. a)includes the following: (
  4. i)credit card debt; (
  5. ii)an overdraft or an unsecured loan from a bank or other entity regulated by the Central Bank of Ireland which carries on business in the State and is regulated by the Central Bank of Ireland; (iii) debt for payment of one or more than one bill in respect of rent, utilities or telephone; (
  6. iv)liquidated debts incurred by the debtor as surety for another person, such as a guarantee given by the debtor that has been called up that any amount guaranteed is due and payable by the debtor, (
  7. b)subject to sections 35
(9)and 46 , may include a secured debt, and (
  1. c)does not include an excludable debt, unless it is a permitted debt; “specified creditor” shall be construed in accordance with section 32 (c)(
  2. ii)and references to a specified creditor include a reference to any person to whom the right to claim the whole or any part of a specified qualifying debt concerned passes, by assignment or operation of law, after the application date concerned; “specified debtor” means a person who is the subject of a Debt Relief Notice and, in relation to a particular Debt Relief Notice, means the person who is the subject of that Notice in accordance with section 32 (a); “specified qualifying debts” shall be construed in accordance with section 32 (b); “supervision period” shall be construed in accordance with section 34 and includes a supervision period as extended under that section; “termination”, in relation to a Debt Relief Notice, means its termination by order of a court under section 43 or 44 . Eligibility criteria for a Debt Relief Notice. 26.—
(1)Subject to the provisions of this Chapter, a debtor shall not be eligible for the issue of a Debt Relief Notice unless an application for such a Notice is made on his or her behalf in accordance with section 29 , and he or she satisfies the eligibility criteria specified in subsection
(2).
(2)Subject to this section, the eligibility criteria referred to in subsection
(1)are that the debtor, on the application date: (
  1. a)has qualifying debts that amount to €20,000 or less; (
  2. b)has net disposable income, calculated in accordance with subsection
(5), of €60 or less a month; (c) has assets, calculated in accordance with subsection
(6), worth €400 or less; (
  1. d)is domiciled in the State or, within one year before the application date, has ordinarily— (
  2. i)resided in the State, or (
  3. ii)had a place of business in the State; (
  4. e)is, taking into account the factors referred to in subsection
(7), insolvent and has no likelihood of becoming solvent within the period of 3 years commencing on the application date, while also maintaining a reasonable standard of living for himself or herself and his or her dependants; (
  1. f)has not, during the period of 2 years ending on the application date— (
  2. i)entered into a transaction with a person at an undervalue that has materially contributed to the debtor’s inability to pay his or her debts (other than any debts due to the person with whom the debtor entered the transaction at an undervalue), or (
  3. ii)given a preference to a person that has had the effect of substantially reducing the amount available to the debtor for the payment of his or her debts (other than a debt due to the person who received the preference); (
  4. g)is not ineligible under subsection
(4)or
(8)for the issue of a Debt Relief Notice.
(3)Where section 135 has been applied— (
  1. a)references in paragraphs (
  2. a)and (
  3. c)of subsection
(2)to a debtor’s debts and assets, and (b) references in subsection
(6)(b)(i) to the debtor’s savings, shall be construed as referring to the amounts concerned after such set-off.
(4)A debtor shall not be eligible for a Debt Relief Notice where 25 per cent or more of his or her qualifying debts were incurred during the period of 6 months ending on the application date.
(5)For the purposes of subsection
(2)(b)— (
  1. a)“net disposable income” means the income available to a debtor, calculated in accordance with paragraph (b), less the deductions referred to in paragraph (c), (
  2. b)the following, in relation to a debtor, shall be taken into account in calculating his or her income— (
  3. i)his or her salary or wages, (
  4. ii)the welfare benefits (other than child benefit) of which he or she is in receipt, (iii) his or her income from a pension, (
  5. iv)contributions from other household members, and (
  6. v)any other income available to him or her, and (
  7. c)the following (where applicable), in relation to a debtor, shall be deducted from the sum calculated under paragraph (b): (
  8. i)his or her reasonable living expenses; (
  9. ii)income tax payable by him or her; (iii) social insurance contributions payable by him or her; (
  10. iv)payments made by him or her in respect of excluded debts; (
  11. v)payments made by him or her in respect of excludable debts that are not permitted debts; (
  12. vi)such other levies and charges on the specified debtor’s income as may be prescribed.
(6)In calculating a debtor’s assets for the purposes of subsection
(2)(c)— (
  1. a)the value of an asset shall be taken to be its market value, irrespective of any mortgage, charge or other security to which it is subject, (
  2. b)the items which shall be taken into account include— (
  3. i)savings; (
  4. ii)subject to paragraph (c)(iii), vehicles; (iii) shares; (
  5. iv)property (real and personal), (
  6. c)the following shall not be taken into account: (
  7. i)the following items, to a total value that does not exceed €6,000— (I) household equipment and appliances that are reasonably necessary to maintain a reasonable standard of living for the debtor and his or her dependants, and (II) books, tools and other items of equipment used by him or her that are reasonably necessary in his or her employment, business or vocation; (
  8. ii)one item of personal jewellery to a value not exceeding €750 or such other value as the Minister may prescribe, where the cost of purchase of that item is not included in the qualifying debts of the debtor for the purposes of subsection
(2)(a); (iii) one motor vehicle, where that motor vehicle is reasonably necessary in order for him or her to carry out his or her everyday activities and— (I) is worth €2,000 or less, or is worth such other amount as the Minister may prescribe, where the cost of purchase of that item is not included in the qualifying debts of the debtor for the purposes of subsection
(2)(a), or (II) where the debtor, or his or her dependant, has a disability, has been specially designed or adapted for use by the debtor or that dependant, as the case may be; (
  1. iv)where the debtor or his or her dependant is attending a course of primary or second-level education, books, materials and other items of equipment that are reasonably necessary to enable the debtor or that dependant, as the case may be, to participate in and complete that course, (
  2. v)any interest in or entitlement under a relevant pension arrangement unless subsection
(12)applies.
(7)The factors to be taken into account for the purposes of subsection
(2)(
  1. e)are— (
  2. a)the current liabilities of the debtor, (
  3. b)the contingent and prospective liabilities of the debtor and (insofar as is ascertainable) the times at which such liabilities will become due for payment, (
  4. c)the current and prospective assets and income of the debtor, and (
  5. d)guidelines issued under section 23 .
(8)A debtor is ineligible for the issue of a Debt Relief Notice where— (
  1. a)he or she has ever been a specified debtor, (
  2. b)he or she has applied for a protective certificate under Chapter 3 or 4 within the period of 12 months ending on the application date, (
  3. c)he or she, as a debtor, is, as of the application date, a party to a Debt Settlement Arrangement or a Personal Insolvency Arrangement which is in effect, (
  4. d)he or she, as a debtor, has successfully completed a Debt Settlement Arrangement or a Personal Insolvency Arrangement within the period of 5 years ending on the application date, (
  5. e)subject to subsection
(9), he or she has applied for bankruptcy and the petition concerned has not been adjudicated before the application date, (f) subject to subsection
(10), a creditor has, before the application date, petitioned to make the debtor bankrupt but the hearing concerned has not yet taken place, (
  1. g)he or she has, before the application date, been adjudicated bankrupt and the adjudication has not been annulled or discharged, (
  2. h)he or she is, as of the application date, a discharged bankrupt subject to a bankruptcy payment order, (
  3. i)he or she is, as a debtor, subject, as of the application date, to an arrangement under the control of the court under Part IV of the Bankruptcy Act 1988 , or (
  4. j)he or she has been discharged from bankruptcy within the period of 5 years ending on the application date.
(9)Subsection
(8)(
  1. e)shall not apply where the petition concerned— (
  2. a)has not been presented before the date on which the application for the Debt Relief Notice is determined under section 31 , (
  3. b)has been so presented, but proceedings on the petition have been finally disposed of before that date, or (
  4. c)has been so presented and proceedings in relation to the petition remain before the High Court at that date, but the Court has referred the person for the purposes of making an application for a Debt Settlement Arrangement or Personal Insolvency Arrangement.
(10)Subsection
(8)(
  1. f)shall not apply where the petition concerned— (
  2. a)has not been presented against the person before the application date, (
  3. b)has been so presented, but proceedings on the petition have been finally disposed of before that date, or (
  4. c)has been so presented and proceedings in relation to the petition remain before the Court at that date, but the making of an application for a Debt Relief Notice has been consented to by the creditor or the person who presented the petition on the creditor’s behalf.
(11)In determining what constitutes reasonable living expenses or a reasonable standard of living for the purposes of this section, regard shall be had to guidelines issued under section 23 .
(12)Where this subsection applies and a debtor has an interest in or entitlement under a relevant pension arrangement which would, if the debtor performed an act or exercised an option, cause that debtor to receive from or at the request of the person administering that relevant pension arrangement— (
  1. a)an income, or (
  2. b)an amount of money other than income, in accordance with the relevant provisions of the Taxes Consolidation Act 1997 , that debtor shall be considered as being in receipt of such income or amount of money.
(13)Subsection
(12)applies where the debtor— (
  1. a)is entitled at the date of the making of the application for a Debt Relief Notice, (
  2. b)was entitled at any time before the date of the making of the application for a Debt Relief Notice, or (
  3. c)will become entitled within 6 months of the date of the making of the application for a Debt Relief Notice, to perform the act or exercise the option referred to in subsection
(12). Initiation of Debt Relief Notice process. 27.—
(1)A debtor who wishes to become a specified debtor shall submit to an approved intermediary a written statement disclosing all of the debtor’s financial affairs, which statement shall include— (
  1. a)such information as may be prescribed in relation to— (
  2. i)his or her creditors, (
  3. ii)his or her debts and other liabilities, (iii) his or her assets, and (
  4. iv)the efforts made by him or her to reach an alternative repayment arrangement with his or her creditors, and (
  5. 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 debtor and, at that meeting, provide, on the basis of the information, the debtor with the following information and advice— (a) whether the debtor satisfies the criteria specified in section 26
(2), (
  1. b)the general effect of making an application under section 29 , and the consequences, including any adverse consequences, for the debtor in the event of his or her becoming a specified debtor, (
  2. c)the other option or options (if any) available to him or her for addressing his or her financial difficulties including, in particular, becoming party to a Debt Settlement Arrangement, Personal Insolvency Arrangement or bankruptcy, and the general effect of choosing one or more than one of those options, (
  3. d)the fee (if any) that is prescribed for making an application under section 29 .
(3)Where the debtor, following the meeting referred to in subsection
(2), wishes to apply for a Debt Relief Notice, he or she shall confirm that fact in writing to the approved intermediary.
(4)The debtor, as soon as practicable after he or she has made the confirmation referred to in subsection
(3), shall provide information that fully discloses his or her financial affairs to the approved intermediary.
(5)The approved intermediary, on receipt of the information referred 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 Statement.
(6)On completion of a Prescribed Financial Statement under subsection
(5), the approved intermediary, if he or she is of the opinion that— (
  1. a)the information contained in the debtor’s Prescribed Financial Statement is true and accurate, and (
  2. b)the debtor satisfies the eligibility criteria specified in section 26
(2), shall prepare a statement to that effect.
(7)A debtor who participates in the Debt Relief Notice process (including a debtor who becomes a specified debtor), is at all times under an obligation to act in good faith and to co-operate fully in the process.
(8)A person referred to in subsection
(7), in his or her dealings with the approved intermediary concerned, shall— (
  1. a)make full and honest disclosure to that approved intermediary of all of his or her assets, income and liabilities and of all other circumstances that are relevant to that process, (
  2. b)comply with any reasonable request from the approved intermediary to provide assistance, documents and information, including any debt, tax, employment, business, social welfare or other financial records, necessary for the application of the process to the debtor’s case or the performance of the approved intermediary’s functions, and (
  3. c)ensure that, to the best of his or her knowledge, the Prescribed Financial Statement completed under this section is true, accurate and complete.
(9)Where an approved intermediary resigns from the role of approved intermediary as respects a debtor, he or she shall notify the Insolvency Service of that fact, which notification shall be accompanied by a statement of the reasons for his or her resignation.
(10)Where, at any time during the Debt Relief Notice process after the debtor has made the confirmation referred to in subsection
(3), the approved intermediary concerned (“original approved intermediary”)— (
  1. a)dies, (
  2. b)becomes incapable, through ill-health or otherwise, of performing the functions of an approved intermediary as respects the debtor, (
  3. c)resigns from the role of approved intermediary as respects the debtor, or (
  4. d)is no longer entitled to perform the functions of an approved intermediary under this Act, the debtor shall, as soon as practicable after becoming aware of that fact, appoint another approved intermediary to act as his or her approved intermediary for the purposes of this Chapter.
(11)(
  1. a)Where paragraph (a), (
  2. b)or (
  3. c)of subsection
(10)applies, the debtor concerned shall, as soon as practicable, inform the Insolvency Service of that fact. (b) Where an approved intermediary has been appointed under subsection
(10), the approved intermediary shall, as soon as practicable, inform the Insolvency Service and the creditors concerned of that fact.
(12)Where an approved intermediary is appointed under subsection
(10)— (
  1. a)that appointment shall not affect the validity of anything previously done under this Chapter by the original approved intermediary, (
  2. b)a Debt Relief Notice that is in effect as regards the debtor shall continue to have effect, and (
  3. c)references in this Act to an approved intermediary, in relation to the debtor concerned, shall be construed as including references to the approved intermediary so appointed. Creditor consent required for issue of Debt Relief Notice in respect of excludable debt. 28.—
(1)A Debt Relief Notice shall be issued in respect of an excludable debt only where the creditor concerned has consented, or is deemed to have consented, in accordance with this section, to the issue of such a Debt Relief Notice.
(2)Where a debtor who wishes an application under section 29 to be made on his or her behalf wishes the Debt Relief Notice concerned to be issued in respect of an excludable debt, the approved intermediary concerned shall, without delay, notify the creditor concerned of that fact, which notification shall be accompanied by— (
  1. a)such information about the debtor’s affairs (including his or her creditors, debts, liabilities, income and assets) as may be prescribed, and (
  2. b)a request in writing that the creditor confirm, in writing, whether or not the creditor consents, for the purposes of this section, to the Debt Relief Notice being issued in respect of the debt.
(3)A creditor shall comply with a request under subsection
(2)(b) within 21 days of receipt of the notification under that subsection.
(4)Where a creditor does not comply with subsection
(3), the creditor shall be deemed to have consented to the issue of a Debt Relief Notice in respect of the debt concerned.
(5)In this Chapter, “permitted debt” means an excludable debt to which subsection
(1)applies. Application for Debt Relief Notice. 29.—
(1)An application for a Debt Relief Notice may only be made— (a) on behalf of a debtor who has made the confirmation referred to in section 27
(3), and (
  1. b)by an approved intermediary who is satisfied, in relation to that debtor, of the matters referred to in paragraphs (
  2. a)and (
  3. b)of section 27
(6).
(2)An application referred to in subsection
(1)shall be made to the Insolvency Service, shall be in such form as may be prescribed by the Insolvency Service and shall be accompanied by such fee (if any) as may be prescribed and the following documents— (a) a copy of the statement made by the approved intermediary under section 27
(6); (b) a document signed by the debtor confirming that he or she satisfies the eligibility criteria specified in section 26
(2); (
  1. c)the Prescribed Financial Statement completed under section 27 and a statutory declaration made by the debtor confirming that the statement is a complete and accurate statement of the debtor’s assets, liabilities, income and expenditure; (
  2. d)a schedule of the creditors of the debtor and the debts concerned, stating in relation to each such creditor— (
  3. i)the amount of each debt due to that creditor, (
  4. ii)whether the creditor concerned is a secured creditor and, if so, the details of any security held in respect of the debt concerned, and (iii) where the debt is an excludable debt, whether that debt is a permitted debt within the meaning of section 28 ; (
  5. e)the debtor’s written consent to— (
  6. i)the disclosure to the Insolvency Service, (
  7. ii)the processing by the Insolvency Service, and (iii) the disclosure by the Insolvency Service to creditors of the debtor concerned, of personal data of that debtor, to the extent necessary in respect of the Debt Relief Notice process; (
  8. f)the debtor’s written consent to the making of any enquiry under section 30 relating to the debtor by the Insolvency Service; (
  9. g)a document signed by the debtor stating whether, to the best of his or her knowledge, there is any judgment or court order in force against him or her which relates to a debt which is a qualifying debt; (
  10. h)such other information about the debtor’s affairs (including his or her creditors, debts, liabilities, income and assets) as may be prescribed.
(3)A debtor on whose behalf an application under subsection
(1)has been made shall notify the approved intermediary concerned as soon as practicable if the debtor becomes aware of— (
  1. a)any error in, or omission from, the information supplied to the Insolvency Service in, or in support of, the application; (
  2. b)any material change in his or her circumstances between the application date and the date on which the application is reviewed under section 31
(2)that would affect the debtor’s eligibility for the issue of a Debt Relief Notice.
(4)An approved intermediary who receives information under subsection
(3)shall, without delay, furnish that information to the Insolvency Service.
(5)An application under this section may be withdrawn by the approved intermediary at any time prior to the issue of a Debt Relief Notice under section 31 . Consideration by Insolvency Service of application under section 29 . 30.—
(1)For the purpose of its consideration of an application under section 29 , the Insolvency Service shall be entitled to request from the approved intermediary any further information it requires and to defer further consideration of the application until such information is furnished to it.
(2)Where an approved intermediary fails to provide the information requested by the Insolvency Service under subsection
(1)within 14 days or such longer period as the Insolvency Service may permit, the application shall be deemed to be withdrawn.
(3)Subject to subsection
(4), in considering the application for a Debt Relief Notice, the Insolvency Service shall make such enquiries as it considers necessary to satisfy itself that— (
  1. a)the approved intermediary is a person entitled under this Act to act as an approved intermediary, and (
  2. b)having regard to the information received under section 29 and subsection
(1)the debtor satisfies the eligibility criteria specified in section 26
(2).
(4)Subject to subsections
(5)to
(7), for the purposes of subsection
(3)the Insolvency Service shall be entitled to presume that the debtor satisfies the eligibility criteria for a Debt Relief Notice set out in section 26
(2)if the documents required under section 29 to accompany the application have accompanied it and the Insolvency Service has no reason to believe that the information supplied in or in support of the application, including information furnished to it under section 29
(4), is incomplete or inaccurate.
(5)The Insolvency Service may make such enquiries as it considers appropriate to verify the completeness or accuracy of any matter referred to in the Prescribed Financial Statement of the debtor or in relation to the assets, liabilities, income or expenditure of the debtor.
(6)Without prejudice to the generality of subsection
(5)the matters in respect of which the Insolvency Service may make an enquiry include the following: (
  1. a)particulars relating to bank accounts, securities or other accounts held, solely or jointly, by or for the benefit of the debtor with financial institutions or financial intermediaries in the State or abroad; (
  2. b)particulars relating to assets of the debtor and the value of such assets; (
  3. c)particulars of the liabilities of the debtor; (
  4. d)the employment and income of the debtor; (
  5. e)payments received by the debtor from the Department of Social Protection, other Departments of State, local authorities or other State bodies or agencies, and whether or not such payments are made as agent of any other person; (
  6. f)taxes or charges imposed by or under statute paid or owed by the debtor, whether within or outside the State and refunds in respect of such taxes and charges which are or may become due to the debtor.
(7)Nothing in this section shall be construed as requiring the Insolvency Service to make an enquiry in any case.
(8)A person who receives an enquiry from the Insolvency Service pursuant to this section shall furnish the information requested as soon as practicable.
(9)Notwithstanding anything contained in any enactment, for the purposes of the performance of the functions of the Insolvency Service under this Chapter, information held by the Department of Social Protection, other Departments of State, the Revenue Commissioners, local authorities or other State bodies or agencies in relation to a debtor may be furnished to the Insolvency Service. Referral of application to appropriate court for issue of Debt Relief Notice. 31.—
(1)Where the Insolvency Service, following its consideration under section 30 — (
  1. a)is satisfied that an application under section 29 is in order, it shall— (
  2. i)issue a certificate to that effect, (
  3. ii)furnish that certificate together with a copy of the application and supporting documentation to the appropriate court, and (iii) notify the approved intermediary to that effect, and (
  4. b)is not so satisfied, it shall notify the approved intermediary to that effect.
(2)Where the appropriate court receives the application and accompanying documentation pursuant to subsection
(1)(a), it shall consider the application and documentation and, subject to subsection
(3)— (a) if satisfied that the criteria specified in section 26
(2)have been satisfied, shall issue a Debt Relief Notice in respect of the debts specified in the application under section 29 which it is satisfied are qualifying debts, and (b) if not so satisfied, shall refuse to issue a Debt Relief Notice.
(3)The appropriate court, where it requires further information or evidence for the purpose of its arriving at a decision under subsection
(2), may hold a hearing, which hearing shall be on notice to the Insolvency Service and the approved intermediary concerned.
(4)A hearing referred to in subsection
(3), unless the appropriate court considers it appropriate to hold it in public, shall be held otherwise than in public.
(5)The registrar of the appropriate court shall notify the Insolvency Service where the appropriate court— (
  1. a)issues a Debt Relief Notice under this section, (
  2. b)refuses an application under subsection
(2)(b), or (c) decides to hold a hearing referred to in subsection
(3).
(6)In considering an application under this section the appropriate court shall be entitled to treat a certificate issued by the Insolvency Service under subsection
(1)as evidence of the matters certified therein. Contents of Debt Relief Notice. 32.— A Debt Relief Notice issued under section 31 shall specify— (
  1. a)the debtor who is the subject of the Notice, (
  2. b)the debts (“specified qualifying debts”), referred to in section 31
(2), in respect of which the Notice has been issued, and (
  1. c)in relation to each specified qualifying debt— (
  2. i)the value of the debt on the application date, and (
  3. ii)the creditor (“specified creditor”) to whom it is owed. Duties of Insolvency Service on issue of Debt Relief Notice. 33.—
(1)On receiving the notification referred to in section 31
(5)(a), the Insolvency Service shall, as soon as practicable— (
  1. a)notify the approved intermediary concerned that the Debt Relief Notice has been issued, (
  2. b)send the notice referred to in subsection
(2)to the specified debtor, (c) send the notice referred to in subsection
(3)to each specified creditor, and (d) comply with subsection
(4).
(2)A notice under subsection
(1)(
  1. b)shall inform the specified debtor of the issue of a Debt Relief Notice in respect of which he or she is the specified debtor, and shall be accompanied by— (
  2. a)a copy of the Notice, and (
  3. b)a statement of the obligations during the supervision period of a specified debtor under this Chapter.
(3)A notice under subsection
(1)(
  1. c)shall inform the specified creditor concerned of the issue of a Debt Relief Notice in respect of which he or she is a specified creditor, and shall be accompanied by— (
  2. a)a copy of the Notice, (
  3. b)a statement of the specified qualifying debt or debts in respect of which he or she is the specified creditor, (
  4. c)a statement of his or her right under section 43 to object to the inclusion, in the Debt Relief Notice, of a specified qualifying debt referred to in paragraph (b), and (
  5. d)a copy of the Prescribed Financial Statement completed under section 27 .
(4)The Insolvency Service complies with this subsection by recording on the Register of Debt Relief Notices— (
  1. a)the fact that the Debt Relief Notice has been issued, (
  2. b)the date on which the Debt Relief Notice was issued, (
  3. c)the name and address of the specified debtor concerned, and (
  4. d)such other details as may be prescribed under section 133
(3)(b). Duration of Debt Relief Notice. 34.—
(1)Subject to this section, the period for which a Debt Relief Notice shall remain in effect (“supervision period”) is the period of 3 years from the date on which its issue is recorded under section 33
(4).
(2)The appropriate court, on application to it by the Insolvency Service, may extend the supervision period where it is satisfied that such extension is necessary in order to allow the Insolvency Service to— (
  1. a)carry out or complete an investigation under section 40 , or (
  2. b)take any other action it considers necessary (whether as a result of such an investigation or otherwise) in relation to the Notice concerned.
(3)The appropriate court may extend the supervision period for the purposes of determining an application under section 42 , 43 or 44 .
(4)Notwithstanding subsections
(1)to
(3), a Debt Relief Notice shall cease to have effect on the date— (
  1. a)on which the termination of the Notice, under section 42 , 43 or 44 , takes effect, or (
  2. b)on which it ceases to have effect under section 37
(2)(a).
(5)The registrar of the appropriate court shall notify the Insolvency Service and the approved intermediary concerned where a supervision period is extended under subsection
(2)or
(3)or under section 41
(3)(c), 42
(3)(c), 43
(5)(b) or 44
(4)(b).
(6)On receiving the notification referred to in subsection
(5), the Insolvency Service shall— (
  1. a)send a notice to the specified debtor and each specified creditor, informing them of the extension, and (
  2. b)record the extension in the Register of Debt Relief Notices. Effect of issue of Debt Relief Notice. 35.—
(1)Subject to this section, a specified creditor shall not, during the supervision period concerned— (
  1. a)initiate any legal proceedings in relation to a specified qualifying debt, (
  2. b)take any step to prosecute any such legal proceedings already initiated, (
  3. c)take any step to secure or recover payment of a specified qualifying debt, (
  4. d)execute or enforce a judgment or order of a court or tribunal against the debtor in respect of a specified qualifying debt, (
  5. e)take any step to recover goods in the possession or custody of the debtor (whether or not title to the goods is vested in the specified creditor), (
  6. f)contact the specified debtor regarding payment of a specified qualifying debt, otherwise than at the request of the debtor, or (
  7. g)in relation to an agreement with the specified debtor, other than a security agreement, by reason only that the debtor is insolvent or that the Debt Relief Notice concerned is in effect— (
  8. i)terminate or amend that agreement, or (
  9. ii)claim an accelerated payment under that agreement.
(2)A specified creditor shall not, during the supervision period concerned, in respect of a specified qualifying debt, present, apply for or proceed with— (
  1. a)a bankruptcy petition relating to the debtor, or (
  2. b)a summons under section 8 of the Bankruptcy Act 1988 .
(3)Without prejudice to subsections
(1)and
(2), during the supervision period concerned, no other proceedings, execution or other legal process in respect of a specified qualifying debt may be commenced or continued against the specified debtor or his or her property, except with the leave of the appropriate court and subject to any order that the court may make to stay such proceedings, execution or other legal processes for such period as the court deems appropriate, but this subsection shall not operate to prohibit the commencement or continuation of any criminal proceedings against the debtor.
(4)Notwithstanding subsection
(1), the fact that a Debt Relief Notice is in effect in relation to a specified debtor shall not operate to prevent a specified creditor taking the actions referred to in subsection
(1)as respects another person who has guaranteed a debt of the specified debtor concerned.
(5)Notwithstanding subsection
(1), the fact that a Debt Relief Notice is in effect under this Chapter in relation to a specified debtor shall not operate to prevent a specified creditor taking the actions referred to in subsection
(3)as respects a person who has jointly contracted with the specified debtor concerned or is jointly liable with that specified debtor to the specified creditor and that other person may sue or be sued in respect of the contract without joining the specified debtor.
(6)Subsections
(4)and
(5)do not apply where a Debt Relief Notice, or a protective certificate issued under Chapter 3 or 4 , is in effect as respects the other person.
(7)The Deeds of Arrangement Act 1887 does not apply to a Debt Relief Notice.
(8)While a Debt Relief Notice remains in effect under this Chapter, the information referred to in section 33
(4), and a record of any extension under this Chapter of the supervision period concerned, shall remain on the Register of Debt Relief Notices.
(9)Nothing in this section shall affect the right of a secured creditor to enforce or otherwise deal with his or her security. General obligations of debtor arising under this Chapter. 36.—
(1)A specified debtor, during the supervision period concerned, shall inform the Insolvency Service as soon as practicable— (
  1. a)of any material change in the specified debtor’s circumstances, in particular an increase or decrease in the extent of his or her assets, liabilities or income, and (
  2. b)where the specified debtor becomes aware of any inaccuracy or omission in his or her Prescribed Financial Statement or any other information provided, or documents submitted, by him or her, or on his or her behalf, to the Insolvency Service.
(2)Subject to subsection
(5), a specified debtor who, during the supervision period concerned, receives a gift or payment worth €500 or more shall surrender to the Insolvency Service 50 per cent of the value of that gift or payment.
(3)Subject to subsections
(4)and
(5), a specified debtor whose income increases by €400 or more per month during the supervision period concerned shall surrender to the Insolvency Service 50 per cent of that increase.
(4)The reference in subsection
(3)to a specified debtor’s income is a reference to his or her income as stated in the information provided, or documents submitted by him or her, or on his or her behalf, under section 29 , less the following deductions (where applicable): (
  1. a)income tax; (
  2. b)social insurance contributions; (
  3. c)payments made by him or her in respect of excluded debts; (
  4. d)payments made by him or her in respect of excludable debts that are not permitted debts; (
  5. e)such other levies and charges on the specified debtor’s income as may be prescribed.
(5)Subsections
(2)and
(3)shall cease to apply in relation to a specified debtor where the aggregate of the sums surrendered by that specified debtor under those subsections equals 50 per cent of the total value of the specified qualifying debts concerned.
(6)A sum surrendered to the Insolvency Service under subsection
(2)or
(3)shall be dealt with in accordance with section 38 .
(7)A specified debtor, during the supervision period concerned, shall not, either alone or with any other person, obtain credit in an amount of more than €650 from any person without informing that person that he or she is a specified debtor. Payment by specified debtor of portion of specified debts. 37.—
(1)A specified debtor may, at any time during the supervision period concerned, pay a sum to the Insolvency Service in accordance with this section.
(2)Where the sum, or the aggregate of the sums paid by a specified debtor under this section, is in an amount that is not less than 50 per cent of the value of the specified qualifying debts concerned— (
  1. a)the Debt Relief Notice concerned shall cease to have effect, (
  2. b)his or her name shall, without delay, be removed from the Register of Debt Relief Notices, and (
  3. c)he or she shall stand discharged from all of the specified qualifying debts.
(3)A sum surrendered by a specified debtor in compliance with subsection
(2)or
(3)of section 36 shall be included in the calculation of the aggregate of the sums paid for the purposes of subsection
(2). Treatment by Insolvency Service of sums received under section 36 or 37. 38.—
(1)The Insolvency Service, on receipt of a sum under subsection
(2)or
(3)of section 36 or under section 37 , shall deal with that sum in accordance with this section.
(2)On receipt of a sum referred to in subsection
(1), the Insolvency Service shall, subject to subsection
(3)— (
  1. a)apportion that sum, on a pari passu basis, among the specified creditors to whom a specified qualifying debt that is a permitted debt is owed, and (
  2. b)within one month of such receipt, transmit to each such specified creditor payment of the sum apportioned to that creditor under paragraph (a).
(3)Where, following a payment or payments to specified creditors under subsection
(2)or subsection
(4), as the case may be, all of the specified qualifying debts referred to in subsection
(2)have been paid in full, the Insolvency Service shall, in relation to a sum referred to in subsection
(1)— (
  1. a)apportion that sum, on a pari passu basis, among the remaining specified creditors concerned, and (
  2. b)within one month of such receipt, transmit to each such specified creditor payment of the sum apportioned to that creditor under paragraph (a).
(4)Where the Insolvency Service— (a) has apportioned a sum to a specified creditor under subsection
(2)(a) or
(3)(a), as the case may be, and (
  1. b)after reasonable efforts, is unable to locate that specified creditor, it shall apportion the sum referred to in paragraph (
  2. a)among the specified creditors referred to in subsection
(2)(a) or
(3)(a), as the case may be, whom it has succeeded in locating and, within one month of doing so, shall transmit to each such specified creditor payment of the sum so apportioned.
(5)Where a specified qualifying debt is secured, the Insolvency Service, in apportioning a sum to the specified creditor concerned under subsection
(2)(a),
(3)(a) or
(4), shall disregard the value of the security held by the specified creditor for that debt. Power to amend Debt Relief Notice. 39.— An appropriate court may, on application to it by the Insolvency Service made during the supervision period concerned, order the amendment of a Debt Relief Notice where it is satisfied that such an amendment is necessary in order to address an ambiguity in, or to rectify an error in or omission from, that Notice. Investigation by Insolvency Service. 40.—
(1)The Insolvency Service may, during the supervision period concerned, carry out, in accordance with this section, an investigation of any matter that appears to it to be relevant to the arriving at a decision to exercise its powers under this Chapter.
(2)Subsections
(5)to
(9)of section 30 apply to an investigation under this section as they apply to an enquiry under that section. Application by Insolvency Service for direction of court. 41.—
(1)The Insolvency Service may, during the supervision period concerned, make an application to the appropriate court for directions in relation to a matter arising in connection with a Debt Relief Notice, including a matter relating to the specified debtor’s compliance with an obligation under section 36 .
(2)An application under subsection
(1)shall be made by the lodging 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 or more of the following— (
  1. a)give the Insolvency Service such directions as it deems appropriate, (
  2. b)make an order for the enforcement of an obligation of the specified debtor under section 36 , (
  3. c)extend the supervision period concerned, (
  4. d)make an order amending the Debt Relief Notice, or (
  5. e)make such other order as it deems appropriate.
(4)The power conferred on the court under subsection
(3)(d), section 42
(3)(d), section 43
(5)(c) and section 44
(4)(d) does not include the power to specify in a Debt Relief Notice, as a specified qualifying debt, any debt that was not included in the schedule referred to in section 29
(2)(d) or in any information provided, or documents submitted, by the specified debtor, or on his or her behalf, for the purpose of his or her application for that Notice. Application by person affected to court. 42.—
(1)A specified debtor or a specified creditor (“applicant”) may, during the supervision period concerned, make an application to the appropriate court if he or she is aggrieved by any act, omission or decision of the Insolvency Service in connection with the Debt Relief Notice concerned.
(2)An application under subsection
(1)shall be made by the lodging by the applicant of a notice with the appropriate court, on notice to the Insolvency Service and— (
  1. a)where the applicant is a specified creditor, to the specified debtor and the other specified creditors, and (
  2. b)where the applicant is the specified debtor, to the specified creditors.
(3)On an application under this section the court may dismiss the application or do one or more of the following— (
  1. a)revoke the whole or part of any act or decision of the Insolvency Service, (
  2. b)make an order for the compliance by the specified debtor concerned with an obligation under section 36 , (
  3. c)extend the supervision period concerned, by an additional period not exceeding 12 months, (
  4. d)make an order amending the Debt Relief Notice concerned, or (
  5. e)make such other order as it deems appropriate. Creditor objection during supervision period. 43.—
(1)A specified creditor may, during the supervision period concerned, make an application to the appropriate court if he or she objects to the inclusion, as a specified qualifying debt, of a debt in respect of which he or she is a specified creditor.
(2)An application under subsection
(1)shall be— (
  1. a)made by the lodging by the specified creditor of a notice of objection with the appropriate court, on notice to the Insolvency Service and the specified debtor, and (
  2. b)based on a ground referred to in subsection
(3).
(3)The grounds of objection on which an application under subsection
(1)may be made are the following: (a) the specified debtor did not satisfy the eligibility criteria specified in section 26
(2)when the application under section 29 was made on his or her behalf, (
  1. b)one or more of the following applies, which causes or has caused a material detriment to the specified creditor— (
  2. i)there is a material inaccuracy or omission in the Prescribed Financial Statement concerned, or other information provided, or documents submitted, by the specified debtor, or on his or her behalf, under section 29 ; (
  3. ii)the specified debtor failed to comply with an obligation under section 36 ; (iii) an adjudication in bankruptcy has been made in relation to the specified debtor that has not been annulled or discharged; (
  4. iv)the specified debtor has since the coming into effect of the Debt Relief Notice, committed an offence under this Act; (
  5. v)the procedural requirements specified in this Chapter were not complied with.
(4)A hearing under subsection
(1)shall be heard with all due expedition.
(5)On an application under this section the court may dismiss the application or do one or more of the following— (
  1. a)terminate the Debt Relief Notice, (
  2. b)extend the supervision period concerned, by an additional period not exceeding 12 months, (
  3. c)make an order amending the Debt Relief Notice, including by removing the debt which was the subject of the objection under subsection
(1), or (d) make such other order as it deems appropriate. Application by Insolvency Service to have Debt Relief Notice terminated. 44.—
(1)The Insolvency Service may, during the supervision period concerned, apply to the appropriate court to have a Debt Relief Notice terminated.
(2)An application under subsection
(1)shall be— (
  1. a)made by the lodging by the Insolvency Service of a notice with the appropriate court, on notice to the specified debtor and each specified creditor, and (
  2. b)based on a ground referred to in subsection
(3).
(3)The grounds on which an application under subsection
(1)may be made are the following— (a) the specified debtor did not satisfy the eligibility criteria specified in section 26
(2)when the application under section 29 was made on his or her behalf, (
  1. b)there is a material inaccuracy or omission in the Prescribed Financial Statement concerned, or other information provided, or documents submitted, by the specified debtor, or on his or her behalf, under section 29 , (
  2. c)the specified debtor failed to comply with an obligation under section 36 , (
  3. d)an adjudication in bankruptcy has been made in relation to the specified debtor that has not been annulled or discharged, (
  4. e)the specified debtor has, since the coming into effect of the Debt Relief Notice, committed an offence under this Act, (
  5. f)the procedural requirements specified in this Chapter were not complied with.
(4)On an application under this section the court may dismiss the application or do one or more of the following— (
  1. a)terminate the Debt Relief Notice, (
  2. b)extend the supervision period concerned, by an additional period not exceeding 12 months, (
  3. c)make an order for the enforcement of an obligation of the specified debtor under section 36 , (
  4. d)make an order amending the Debt Relief Notice, or (
  5. e)make such other order as it deems appropriate. Effect of termination of Debt Relief Notice. 45.—
(1)Where a Debt Relief Notice is terminated under this Chapter, the specified debtor shall, unless the appropriate court has ordered otherwise and subject to subsection
(2), thereupon be liable in full for— (
  1. a)all debts specified in the Debt Relief Notice at the time of its termination as specified qualifying debts, and (
  2. b)all arrears, charges and interest that have accrued during the supervision period in relation to those debts.
(2)In calculating the liability of a specified debtor under subsection
(1), the debtor shall be given credit in respect of payments made by him or her under subsection
(2)or
(3)of section 36 or under section 37 .
(3)Where subsection
(1)applies— (
  1. a)the period during which the Debt Relief Notice concerned was in effect shall be disregarded in reckoning any period of time for the purpose of any applicable limitation period (including any limitation period under the Statute of Limitations 1957) in relation to any proceedings or process in respect of a specified qualifying debt to which section 35 applied, and (
  2. b)the period for which any judgment against the specified debtor in relation to a specified qualifying debt has effect (whether under statute or rule of court) shall, subject to the provisions of this Act, be extended by the period that the Debt Relief Notice was in effect. Discharge from specified qualifying debts. 46.—
(1)Where a Debt Relief Notice ceases to have effect (other than where it is terminated under this Chapter), the specified debtor shall, subject to this section, stand discharged from the specified qualifying debts concerned and all interest, penalties and other sums which have, since the application date, become payable in relation to those debts.
(2)Where a specified debtor stands discharged from the specified qualifying debts under subsection
(1), the Insolvency Service shall, without delay and, in any event, within 3 months— (
  1. a)remove from the Register of Debt Relief Notices all information recorded in it in respect of the Debt Relief Notice, (
  2. b)send a notice to the specified creditors informing them of that fact, and (
  3. c)issue to the specified debtor a certificate (“Debt Relief Certificate”) confirming the discharge.
(3)Subsection
(1)is without prejudice to a specified debtor’s obligations under section 36
(2)and
(3).
(4)The discharge of the specified debtor under subsection
(1)does not release any other person from— (
  1. a)any liability (whether as partner or co-trustee of the specified debtor or otherwise) from which the specified debtor is discharged, or (
  2. b)any liability as surety for the specified debtor or as a person in the nature of such a surety.
(5)Subsection
(1)shall not affect the right of a secured creditor to enforce or otherwise deal with his or her security. Approved intermediaries. 47.—
(1)The Insolvency Service may authorise a person, or a class of person, to perform the functions of an approved intermediary under this Chapter.
(2)An approved intermediary shall not charge a debtor referred to in section 27
(1)any fee in connection with the performance by the approved intermediary of his or her functions under this Chapter.
(3)An approved intermediary is not liable in damages to any person for anything done or omitted to be done when acting (or purporting to act) as an approved intermediary under this Chapter.
(4)Subsection
(3)shall not apply if the act or omission concerned was in bad faith.
(5)The Insolvency Service, with the consent of the Minister, may and, if directed by the Minister to do so and in accordance with the terms of the direction, shall, following consultation with any other person or body as the Insolvency Service thinks appropriate or as the Minister directs, prescribe the criteria for authorisation of persons as approved intermediaries under this section, having regard to— (a) the experience, qualification, training and expertise required for the performance of the functions of an approved intermediary under this Chapter, and (b) the need to ensure the protection of debtors who are or may become specified debtors under this Chapter.
(6)Regulations under subsection
(5)may provide for the withdrawal of an authorisation of a person where he or she no longer meets the criteria for such an authorisation prescribed in those regulations.
(7)The Insolvency Service may, out of the proceeds of fees charged under section 20 , make payments to an approved intermediary in connection with the performance of his or her functions under this Chapter. Chapter 2 Appointment of personal insolvency practitioner for purposes of Chapter 3 or 4 General. 48.— A debtor who wishes to become party, as a debtor, to a Debt Settlement Arrangement under Chapter 3 or a Personal Insolvency Arrangement under Chapter 4 (“an arrangement”) shall, before making an application under the Chapter concerned, comply with this Chapter. Appointment of personal insolvency practitioner. 49.—
(1)A debtor to whom section 48 applies shall submit to a personal insolvency practitioner a written statement disclosing all of the debtor’s financial affairs, which statement shall include— (
  1. a)such information as may be prescribed in relation to— (
  2. i)his or her creditors, (
  3. ii)his or her debts and other liabilities, (iii) his or her assets, and (
  4. iv)guarantees (if any) given by the debtor in respect of a debt of another person, and (
  5. b)such other financial information as may be prescribed.
(2)Following receipt of the information referred to in subsection
(1), the personal insolvency practitioner shall hold a meeting with the debtor and— (
  1. a)advise him or her, on the basis of the information, of his or her options for addressing his or her financial difficulties and, in particular whether he or she satisfies the criteria specified in Chapter 3 or 4 , or both, for making a proposal for an arrangement, which advice the personal insolvency practitioner shall confirm in writing to the debtor, and (
  2. b)provide him or her with— (
  3. i)information relating to the procedure involved in, and general effect, including the likely costs, of becoming party to an arrangement, (
  4. ii)information in writing relating to the fee arrangements and other conditions of appointment of the personal insolvency practitioner in the event that he or she is appointed under subsection
(3), and (iii) such other information as may be prescribed.
(3)Where the debtor, following the meeting referred to in subsection
(2), wishes to become party to an arrangement, he or she shall appoint a personal insolvency practitioner (whether the personal insolvency practitioner referred to in subsection
(1)or another personal insolvency practitioner) to act as his or her personal insolvency practitioner for the purposes of Chapter 3 or 4, as the case may be.
(4)On being appointed under subsection
(3), the personal insolvency practitioner shall— (
  1. a)confirm in writing to the debtor that the personal insolvency practitioner has consented to act in the role of personal insolvency practitioner as respects the debtor, and (
  2. b)notify the Insolvency Service of his or her appointment.
(5)Where a personal insolvency practitioner is appointed under subsection
(3), he or she shall stand appointed, and the debtor concerned shall not appoint another personal insolvency practitioner under that subsection, until such time as— (
  1. a)the debtor concerned requests him or her to resign from the role of personal insolvency practitioner as respects the debtor, or (
  2. b)the personal insolvency practitioner resigns from that role, on his or her own initiative.
(6)Where a personal insolvency practitioner resigns from the role of personal insolvency practitioner as respects a debtor, he or she shall notify the Insolvency Service of that fact, which notification shall be accompanied by a statement of the reasons for his or her resignation.
(7)Where a personal insolvency practitioner appointed under subsection
(3)(“original personal insolvency practitioner”)— (
  1. a)dies, (
  2. b)becomes incapable, through ill-health or otherwise, of performing the functions of a personal insolvency practitioner as respects the debtor, (
  3. c)resigns from the role of personal insolvency practitioner as respects the debtor, or (
  4. d)is no longer entitled to perform the functions of a personal insolvency practitioner under this Act, the debtor shall, as soon as practicable after becoming aware of that fact, appoint another personal insolvency practitioner to act as his or her personal insolvency practitioner for the purposes of Chapter 3 or 4, as the case may be.
(8)(
  1. a)Where paragraph (a), (
  2. b)or (
  3. c)of subsection
(7)applies, the debtor concerned shall, as soon as practicable, inform the Insolvency Service of that fact. (b) Where a personal insolvency practitioner has been appointed under subsection
(7), the personal insolvency practitioner shall, as soon as practicable, inform the Insolvency Service and the creditors concerned of that fact.
(9)Where a personal insolvency practitioner is appointed under subsection
(7)— (
  1. a)that appointment shall not affect the validity of anything previously done under this Chapter, Chapter 3 or Chapter 4 , as the case may be, by the original personal insolvency practitioner, (
  2. b)a Debt Settlement Arrangement or a Personal Insolvency Arrangement that is in effect as regards the debtor shall continue to have effect, and (
  3. c)references in this Act to a personal insolvency practitioner, in relation to the debtor concerned, shall be construed as including references to the personal insolvency practitioner so appointed. Completion of Prescribed Financial Statement. 50.—
(1)As soon as practicable after the personal insolvency practitioner has been appointed under section 49
(3), the debtor shall provide information that fully discloses his or her financial affairs to the personal insolvency practitioner.
(2)The personal insolvency practitioner, on receipt of the information referred to in subsection
(1), shall examine that information and, 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 Statement referred to in subsection
(2), is under an obligation to make a full and honest disclosure of his or her financial affairs and to ensure that, to the best of his or her knowledge, the Prescribed Financial Statement is true, accurate and complete. Provisions relating to pension arrangements. 51.—
(1)Subject to subsection
(4), in relation to Debt Settlement Arrangements and Personal Insolvency Arrangements, where a debtor has an interest in or an entitlement under a relevant pension arrangement, such interest or entitlement of the debtor shall not be treated as an asset of the debtor unless subsection
(2)applies.
(2)Where this section applies and a debtor has an interest in or entitlement under a relevant pension arrangement which would, if the debtor performed an act or exercised an option, cause that debtor to receive from or at the request of the person administering that relevant pension arrangement— (
  1. a)an income, or (
  2. b)an amount of money other than income, in accordance with the relevant provisions of the Taxes Consolidation Act 1997 , that debtor shall be considered as being in receipt of such income or amount of money.
(3)Subsection
(2)applies where the debtor— (
  1. a)is entitled at the date of the making of the application for a protective certificate, (
  2. b)was entitled at any time before the date of the making of the application for a protective certificate, or (
  3. c)will become entitled within 6 years and 6 months of the date of the making of the application for a protective certificate in relation to a Debt Settlement Arrangement or within 7 years and 6 months of the date of the making of the application for a protective certificate in relation to a Personal Insolvency Arrangement, to perform the act or exercise the option referred to in subsection
(2).
(4)Nothing in subsections
(1)to
(3)shall remove the obligation of a debtor making an application for a protective certificate to make disclosure of any interest in or entitlement under a relevant pension arrangement in completing the Prescribed Financial Statement. Personal insolvency practitioner to advise debtor. 52.—
(1)On completion of the Prescribed Financial Statement in accordance with section 50 , the personal insolvency practitioner shall, on the basis of the information disclosed to him or her by the debtor under section 50
(1), advise the debtor of the following: (
  1. a)his or her options for addressing his or her financial difficulties; (
  2. b)his or her eligibility under section 57 or 91 , as the case may be, to make a proposal for a Debt Settlement Arrangement or a Personal Insolvency Arrangement, as the case may be; (
  3. c)the personal insolvency practitioner’s opinion as to whether it would be more appropriate for the debtor to enter into a Personal Insolvency Arrangement or a Debt Settlement Arrangement.
(2)The advice referred to in subsection
(1)(
  1. a)shall include advice relating to— (
  2. a)the appropriateness or otherwise of the debtor making a proposal for and entering into an arrangement, having regard to such matters as the personal insolvency practitioner considers relevant, but in any case, including— (
  3. i)the debtor’s financial and other circumstances as set out in the Prescribed Financial Statement, (
  4. ii)whethe

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