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

• The establishment and functions of an Insolvency Service.
• Different types of insolvency arrangements: Debt Relief Notices, Debt Settlement Arrangements, and Personal Insolvency Arrangements.
• The process for applying for and managing these insolvency arrangements.
• Offences related to personal insolvency.

Who it concerns

• Individuals who are debtors and are experiencing financial difficulties.
• Creditors of these individuals.
• Personal insolvency practitioners and approved intermediaries who assist debtors.

Key points

• The Insolvency Service is established to oversee and manage personal insolvency processes.
• Debt Relief Notices are for specific qualifying debts and have a defined duration.
• Debt Settlement Arrangements and Personal Insolvency Arrangements involve proposals to creditors and require certain approvals.
• There are specific eligibility criteria for each type of insolvency arrangement.