Personal Insolvency (Amendment) Act 2015

Personal Insolvency (Amendment) Act 2015 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.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2015 Personal Insolvency (Amendment) Act 2015 Personal Insolvency (Amendment) Act 2015 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 Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 32 of 2015 Personal Insolvency (Amendment) Act 2015 CONTENTS Section 1. Definition 2. Amendment of section 9 of Principal Act 3. Amendment of section 26 of Principal Act 4. Amendment of section 71 of Principal Act 5. Amendment of section 72 of Principal Act 6. Amendment of section 73 of Principal Act 7. Approval of proposed Debt Settlement Arrangement where only one creditor 8. Amendment of section 75 of Principal Act 9. Amendment of section 76 of Principal Act 10. Amendment of section 78 of Principal Act 11. Amendment of section 82 of Principal Act 12. Amendment of section 91 of Principal Act 13. Amendment of section 95 of Principal Act 14. Amendment of section 107 of Principal Act 15. Amendment of section 108 of Principal Act 16. Amendment of section 110 of Principal Act 17. Approval of proposed Personal Insolvency Arrangement where only one creditor 18. Amendment of section 112 of Principal Act 19. Amendment of section 113 of Principal Act 20. Amendment of section 115 of Principal Act 21. Court review of proposed Personal Insolvency Arrangement 22. Amendment of section 119 of Principal Act 23. Amendment of section 159 of Principal Act 24. Insertion in Principal Act of sections 176A to 176D 25. Amendment of section 181 of Principal Act 26. Amendment of section 186 of Principal Act 27. Short title and collective citation Acts Referred to Bankruptcy Act 1988 (No. 27) Companies (Miscellaneous Provisions) Act 2013 (No. 46) Courts and Civil Law (Miscellaneous Provisions) Act 2013 (No. 32) Finance Act 2013 (No. 8) Personal Insolvency Act 2012 (No. 44) Number 32 of 2015 PERSONAL INSOLVENCY (AMENDMENT) ACT 2015 An Act to amend the Personal Insolvency Act 2012 in relation to the procedures for the approval of Debt Settlement Arrangements and Personal Insolvency Arrangements under that Act; to provide for court review of proposed Personal Insolvency Arrangements in certain circumstances; to amend the eligibility criteria for Debt Relief Notices; to further provide for the regulation and supervision of personal insolvency practitioners; and to provide for related matters. [28 th July, 2015] Be it enacted by the Oireachtas as follows: Definition 1. In this Act “Principal Act” means the Personal Insolvency Act 2012 . Amendment of section 9 of Principal Act 2. Section 9(1) of the Principal Act is amended by— (a) the substitution of the following for paragraph (e): “(e) promote public awareness and understanding of matters relating to personal insolvency, and provide information on the working of this Act and of the Bankruptcy Act 1988 , and on related matters including those specified in paragraphs (jb), (jc) and (jd),”, and (b) the insertion of the following after paragraph (ja) (inserted by section 38 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “(jb) compile, collect, analyse and disseminate information and statistics on the operation of this Act and of the Bankruptcy Act 1988, (jc) monitor and analyse developments, as respects the situation of insolvent debtors and trends in, and patterns of, debtor and creditor behaviour, (jd) develop strategies for communicating with the public aimed at promoting the use of insolvency arrangements and enhancing their effective application,”. Amendment of section 26 of Principal Act 3. Section 26 of the Principal Act is amended in subsection (2)(a) by the substitution of “€35,000” for “€20,000”. Amendment of section 71 of Principal Act 4. Section 71 of the Principal Act is amended— (a) in subsection (1), by the insertion of “and section 74A(2)(b) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015)” after “section 70(2)(b) ”, and (b) by the substitution of the following for subsection (2): “(2) Where a debtor’s financial position has materially changed in the period between the completion by him or her of a Prescribed Financial Statement under section 50 and the giving of a notice under section 70(2) or, as the case may be, section 74A(2) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015)— (a) the debtor shall inform the personal insolvency practitioner of that fact and of the nature of such change, and (b) the personal insolvency practitioner shall, if he or she considers that the change necessitates the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new statement, and where those circumstances arise a reference in this section to the Prescribed Financial Statement shall be construed as a reference to the new Prescribed Financial Statement. (3) Where a new Prescribed Financial Statement is completed pursuant to subsection (2), the personal insolvency practitioner shall furnish a copy of that Statement to the Insolvency Service.”. Amendment of section 72 of Principal Act 5. Section 72 of the Principal Act is amended— (a) in subsection (7), by the insertion of “or deemed to have been approved” after “approved”, and (b) by the deletion of subsection (8). Amendment of section 73 of Principal Act 6. Section 73 of the Principal Act is amended— (a) by the substitution of the following for subsection (6): “(6) A proposal for a Debt Settlement Arrangement shall be considered as having been approved by a creditors’ meeting held under this Chapter where creditors representing not less than 65 per cent of the total amount of the debtor’s debts due to the creditors participating in the meeting and voting have voted in favour of the proposal.”, and (b) in subsection (7), by the substitution of “Where a vote is held under section 72(5) and no creditor votes,” for “Where no creditor votes,”. Approval of proposed Debt Settlement Arrangement where only one creditor 7. The Principal Act is amended by the insertion of the following after section 74: “74A. (1) Where— (a) a personal insolvency practitioner has prepared a proposal for a Debt Settlement Arrangement and the debtor has consented to that proposal, and (b) only one creditor would be entitled to vote at a creditors’ meeting held under this Chapter (whether in respect of one or more debts), the procedures specified in this section, and not those specified in sections 70, 72 and 73, shall apply in relation to the approval by that creditor of the proposal for a Debt Settlement Arrangement. (2) A personal insolvency practitioner referred to in subsection (1) shall— (a) give written notice to the creditor that the proposal for a Debt Settlement Arrangement has been prepared and that the creditor may, within the period specified in subsection (6) (a), notify the personal insolvency practitioner in writing of his or her approval or otherwise of that proposal, (b) ensure that the notice referred to in paragraph (a) is accompanied by a copy of each of the documents referred to in section 71, and (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in paragraph (b) with the Insolvency Service. (3) A personal insolvency practitioner who has complied with subsection (2) may, where he or she believes it is in the interests of obtaining approval of a proposed Debt Settlement Arrangement by the creditor and with the consent in writing of the debtor, prepare an amended proposal for a Debt Settlement Arrangement. (4) Where the personal insolvency practitioner prepares an amended proposal for a Debt Settlement Arrangement pursuant to subsection (3) he or she shall— (a) give written notice to the creditor that he or she may, within the period specified in subsection (6)(b), notify the personal insolvency practitioner in writing of his or her approval or otherwise of the amended proposal, which notice shall be accompanied by a copy of the amended proposal, (b) give the debtor a copy of the documents referred to in paragraph (a), and (c) lodge a copy of the documents referred to in paragraph (a) with the Insolvency Service. (5) A proposal for a Debt Settlement Arrangement may, before the creditor has notified the personal insolvency practitioner of his or her approval or otherwise of the proposal, be subject to a proposal for a modification where the modification addresses an ambiguity or rectifies an error in the proposed Debt Settlement Arrangement and where— (a) the modification has been proposed by the creditor or the personal insolvency practitioner, and (b) the debtor gives his or her written consent to the modification. (6) A creditor to whom this section applies shall notify the personal insolvency practitioner in writing of his or her approval or otherwise of a proposal for a Debt Settlement Arrangement within— (a) 14 days of the giving to him or her of the notice under subsection (2), or (b) if later, 7 days of the date on which a notice under subsection (4) (a) is first given to him or her. (7) A proposal for a Debt Settlement Arrangement to which this section applies— (a) shall be considered as having been approved by the creditor concerned where that creditor notifies the personal insolvency practitioner in accordance with subsection (6) of the creditor’s approval of that proposal, and (b) where that creditor fails to comply with subsection (6), shall be deemed to have been approved by the creditor concerned. (8) Where a creditor to whom this section applies notifies the personal insolvency practitioner in accordance with subsection (6) that he or she does not approve of the proposal, the Debt Settlement Arrangement procedure shall be deemed to have come to an end and the protective certificate issued under section 61 shall cease to have effect. (9) Where a personal insolvency practitioner fails to give the creditor a notice under subsection (2) before the expiry of the protective certificate, the Debt Settlement Arrangement procedure shall be deemed to have come to an end. (10) Where this section applies, a reference in section 61(13) to section 73 shall be construed as a reference to this section.”. Amendment of section 75 of Principal Act 8. Section 75 of the Principal Act is amended— (a) by the substitution of the following for subsection (1) (as amended by section 71 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “(1) Where a Debt Settlement Arrangement is approved or, as the case may be, deemed to have been approved at a creditors’ meeting in accordance with section 73, the personal insolvency practitioner shall as soon as practicable after the meeting has concluded notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by— (a) (i) subject to subparagraph (ii), a certificate with the result of the vote taken at the creditors’ meeting, identifying the number of votes, in value of the creditors present and voting, in favour of and against the proposed Debt Settlement Arrangement, and stating that the requisite proportion of creditors referred to in section 73(6) has approved the proposal for a Debt Settlement Arrangement, or (ii) where section 73(7) applies to the proposal, a certificate to that effect, (b) a copy of the approved Debt Settlement Arrangement, and (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that— (i) the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57, (ii) the approved Debt Settlement Arrangement complies with the mandatory requirements referred to in section 65(2), and (iii) the approved Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt.”, (b) by the insertion of the following after subsection (1): “(1A) Where a Debt Settlement Arrangement is approved or, as the case may be, deemed to have been approved in accordance with section 74A(7)(inserted by section 7 of the Personal Insolvency (Amendment) Act 2015), the personal insolvency practitioner shall as soon as practicable thereafter notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by— (a) a certificate stating that section 74A applies to the proposed Debt Settlement Arrangement and that the proposal concerned has been approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) by the only creditor entitled to vote on the proposal, (b) a copy of the approved Debt Settlement Arrangement, and (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that— (i) the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57, (ii) the approved Debt Settlement Arrangement complies with the mandatory requirements referred to in section 65(2), and (iii) the approved Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt.”, and (c) in subsection (2), by the insertion of “or, as the case may be, subsection (1A) (inserted by section 8 (b) of the Personal Insolvency (Amendment) Act 2015),” after “the documents referred to in subsection (1) ”. Amendment of section 76 of Principal Act 9. Section 76 of the Principal Act is amended in subsection (1) by the insertion of “or, as the case may be, section 75(1A) (inserted by section 8(b) of the Personal Insolvency (Amendment) Act 2015)” after “pursuant to section 75(1) (as amended by section 71 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 )”. Amendment of section 78 of Principal Act 10. Section 78 of the Principal Act is amended— (a) in subsection (2), by the substitution of the following for paragraph (a) (iv): “(iv) proposal for a Debt Settlement Arrangement, as the case may be— (I) has been approved by the requisite proportion of creditors referred to in section 73(6), (II) is one to which section 73(7) applies, or (III) has been approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015),”, and (b) by the substitution of the following for subsection (5) (as amended by section 73 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “(5) For the purposes of subsection (2), the appropriate court may accept— (a) the certificate of the personal insolvency practitioner referred to in section 75(1)(a)(i) (as amended by section 8 (a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Debt Settlement Arrangement has been approved by the requisite proportion of creditors referred to in section 73(6), (b) the certificate of the personal insolvency practitioner referred to in section 75(1)(a)(ii) (as amended by section 8 (a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Debt Settlement Arrangement is one to which section 73(7) applies, (c) the certificate of the personal insolvency practitioner referred to in section 75(1A) (inserted by section 8 (b) of the Personal Insolvency (Amendment) Act 2015) as evidence that the Debt Settlement Arrangement has been approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015), and (d) the statement of the personal insolvency practitioner referred to in section 75(1)(c) (as amended by section 71 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ) or, as the case may be, section 75(1A)(c) (inserted by section 8 (b) of the Personal Insolvency (Amendment) Act 2015) as evidence of any matter referred to in subsection (2) which is the subject of that statement.”. Amendment of section 82 of Principal Act 11. The Principal Act is amended by the substitution of the following for section 82 (as amended by section 75 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “82. (1) Subject to this section, a Debt Settlement Arrangement may be varied in accordance with its terms. (2) A personal insolvency practitioner, whether on his or her own initiative or on a request made in accordance with subsection (3), shall propose a variation of a Debt Settlement Arrangement (in this section referred to as a ‘variation’) where— (a) it appears to the personal insolvency practitioner that there has been a material change in the debtor’s circumstances, and (b) the personal insolvency practitioner is satisfied that there is a reasonable prospect that a variation that addresses such circumstances would be approved in accordance with this section. (3) A debtor or creditor who is bound by a Debt Settlement Arrangement may request the personal insolvency practitioner to propose a variation of the Arrangement, which request shall be— (a) in writing, (b) accompanied by information or evidence to support the assertion that there has been a material change in the debtor’s circumstances, and (c) accompanied by the written consent of the person making the request to the— (i) making by the personal insolvency practitioner of an enquiry under subsection (4), and (ii) disclosure by the personal insolvency practitioner of personal data of the person, to the extent necessary for such an enquiry. (4) A personal insolvency practitioner shall, within 21 days of receipt of a request under subsection (3), decide whether paragraphs (a) and (b) of subsection (2) apply in relation to the Debt Settlement Arrangement concerned and, for that purpose— (a) may request any further information he or she requires from the person who made the request, and (b) may make such enquiries as he or she considers necessary in order to arrive at his or her decision. (5) For the purpose of deciding, whether under subsection (4) or otherwise, whether paragraphs (a) and (b) of subsection (2) apply in relation to the Debt Settlement Arrangement concerned, the personal insolvency practitioner may require the debtor concerned, where necessary with the assistance of the personal insolvency practitioner, to complete a new Prescribed Financial Statement. (6) Where the personal insolvency practitioner is satisfied that paragraphs (a) and (b) of subsection (2) apply in relation to the Debt Settlement Arrangement concerned, he or she shall without delay— (a) require the debtor concerned, where necessary with the assistance of the personal insolvency practitioner, to complete a new Prescribed Financial Statement, unless the debtor has completed a Prescribed Financial Statement under subsection (5) and the information contained in it remains complete and accurate, (b) formulate a proposal for a variation, (c) seek the written consent of the debtor to the proposal and, subject to subsection (8), to the calling of a meeting of the creditors of the debtor for the purpose of considering the proposal, and (d) subject to subsection (8), where the consent of the debtor referred to in paragraph (c) has been given, arrange for the holding of the meeting referred to in that paragraph. (7) When calling a creditors’ meeting to be held under this section, the personal insolvency practitioner shall— (a) give each creditor at least 14 days’ written notice of the meeting and the date on which, and the time and place at which, the meeting will be held, (b) ensure that the notice referred to in paragraph (a) is accompanied by— (i) a written proposal for the variation of the Debt Settlement Arrangement, (ii) a report of the personal insolvency practitioner— (I) describing the outcome for the creditors and for the debtor under the terms of the proposal, and (II) indicating whether or not he or she is of the opinion that the debtor is reasonably likely to be able to comply with the terms of the Debt Settlement Arrangement as varied in accordance with the proposal, (iii) the Prescribed Financial Statement completed by the debtor under subsection (5) or (6), as the case may be, and (iv) such other information obtained by the personal insolvency practitioner under this section as he or she considers relevant, and (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in paragraph (b) with the Insolvency Service. (8) Where only one creditor would be entitled to vote at a creditors’ meeting under this section (whether in respect of one or more debts), the personal insolvency practitioner shall, in place of holding such a meeting, give notice to the creditor of the proposal for a variation, and paragraphs (b) and (c) of subsection (7) shall apply in respect of that notice. (9) The provisions of sections 65 to 69 and sections 72 to 78 (other than subsections (2) and (3) of section 67, sections 72(4), 72(7), 73(2), 74A(7) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015), 75(1)(c)(i) (as amended by section 8 (a) of the Personal Insolvency (Amendment) Act 2015), 75(1A)(c)(i) (inserted by section 8 (b) of the Personal Insolvency (Amendment) Act 2015), 76(2), 77(3) and 78(2)(a)(i)) and section 87 shall apply in relation to a variation of a Debt Settlement Arrangement under this section, subject to the following modifications and any other necessary modifications— (a) a reference to a Debt Settlement Arrangement shall be construed as a reference to a Debt Settlement Arrangement as varied in accordance with this Chapter, (b) a reference to a proposal for a Debt Settlement Arrangement shall be construed as a reference to a proposal for the variation of a Debt Settlement Arrangement, and a reference to a proposed Debt Settlement Arrangement shall be construed as a reference to a proposed variation of a Debt Settlement Arrangement, (c) a reference to a Prescribed Financial Statement shall be construed as a reference to the Prescribed Financial Statement completed by the debtor under subsection (5) or (6), as the case may be, (d) the variation of a Debt Settlement Arrangement shall not have the effect of extending the duration of that Debt Settlement Arrangement beyond the maximum duration permitted under section 65(2)(a), (e) a Debt Settlement Arrangement as varied under this section shall, in addition to containing the information referred to in section 65(2) (e), make provision for the costs and outlays of the personal insolvency practitioner which relate to this section, (f) a reference to a creditors’ meeting shall be construed as a reference to a creditors’ meeting called under this section, (g) an adjournment pursuant to section 72(2) may occur once only in the course of a creditors’ meeting, and (h) a reference in section 78(5) (c) (as amended by section 10 (b) of the Personal Insolvency (Amendment) Act 2015) to section 74A(7) shall be construed as a reference to subsection (11). (10) The voting rights exercisable by a creditor at a creditors’ meeting under this section shall be proportionate to the amount of the debt due by the debtor to the creditor on the day on which the vote is held. (11) (a) Where subsection (8) applies, the creditor concerned shall notify the personal insolvency practitioner in writing of his or her approval or otherwise of a proposal for the variation of a Debt Settlement Arrangement within— (i) 14 days of the giving to him or her of the notice under that subsection, or (ii) if later, 7 days of the date on which a notice under section 74A(4)(a) is first given to him or her. (b) A proposal referred to in paragraph (a) — (i) shall be considered as having been approved by the creditor concerned where that creditor notifies the personal insolvency practitioner in accordance with that paragraph of the creditor’s approval of the proposal, and (ii) where that creditor fails to comply with that paragraph, shall be deemed to have been approved by the creditor concerned. (12) Where— (a) on the taking of a vote at a creditors’ meeting under this section, the proposal is not approved in accordance with section 73, (b) subsection (8) applies and the proposal is not approved in accordance with subsection (11), or (c) the appropriate court upholds the objection of a creditor to the variation of a Debt Settlement Arrangement coming into effect, the Debt Settlement Arrangement concerned shall, without prejudice to the other provisions of this Act, continue in effect without being subject to such variation. (13) Subsection (12) shall be without prejudice to the entitlement of the personal insolvency practitioner to propose another variation of the Debt Settlement Arrangement in accordance with this section. (14) Subject to subsection (15), an unreasonable refusal by the debtor to give his or her consent— (a) under subsection (6) to a proposal for a variation or the calling of a creditors’ meeting, or (b) under subsection (2) or (6) of section 72 or, as the case may be, subsection (3) or (5) of section 74A (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015), shall be grounds for an application under section 83(1) (g). (15) A debtor who refuses to give his or her consent under a provision referred to in subsection (14) shall be considered to be acting reasonably where the proposal in relation to which the consent is sought would require the debtor— (a) where there has been an increase in the debtor’s income, to make additional payments in excess of 50 per cent of the increase in his or her income available to him or her after the following deductions (where applicable) are made: (i) income tax; (ii) social insurance contributions; (iii) payments made by him or her in respect of excluded debts; (iv) payments made by him or her in respect of excludable debts that are not permitted debts; (v) such other levies and charges on income as may be prescribed, or (b) to make a payment amounting to more than 50 per cent of the value of any property acquired by the debtor after the coming into effect of the Debt Settlement Arrangement that is proposed to be varied, unless receipt of that property had been anticipated by the terms of that Arrangement. (16) A reference in this Chapter to a Debt Settlement Arrangement shall be construed as including such an arrangement as proposed to be varied or, as varied in accordance with this section, unless the context otherwise requires. (17) In this section, ‘material change in the debtor’s circumstances’ means a change in the debtor’s circumstances that would materially affect his or her ability to make payments, or otherwise perform his or her obligations, under the Debt Settlement Arrangement, and includes an increase or decrease in the extent of the debtor’s assets, liabilities or income.”. Amendment of section 91 of Principal Act 12. Section 91 of the Principal Act is amended— (a) in subsection (1), by the substitution of the following for paragraph (g): “(g) that the debtor has made a declaration in writing declaring that he or she has co-operated for a period of at least 6 months with his or her creditors who are secured creditors as respects the debtor’s principal private residence in accordance with any process relating to mortgage arrears operated by the secured creditors concerned which has been approved or required by the Central Bank of Ireland and which process relates to the secured debt concerned and that— (i) notwithstanding such co-operation the debtor has not been able to agree an alternative repayment arrangement with the secured creditor concerned, or that the secured creditor has confirmed to the debtor in writing the unwillingness of that secured creditor to enter into an alternative repayment arrangement, or (ii) the debtor— (I) has entered into an alternative repayment arrangement and has, in good faith, endeavoured to comply with that arrangement, and (II) the personal insolvency practitioner has provided the debtor with a confirmation under subsection (2A);”, and (b) by the insertion of the following after subsection (2): “(2A) A confirmation under this subsection is a confirmation in writing by the personal insolvency practitioner that, having regard to the financial circumstances of the debtor as disclosed in the Prescribed Financial Statement completed by the debtor, and the terms of the alternative payment arrangement referred to in subsection (1) (g) (ii), it is the belief of that practitioner that the debtor, if he or she were not to enter into a Personal Insolvency Arrangement, would be unlikely to become solvent within the period of 5 years commencing on the date of the personal insolvency practitioner giving that confirmation.”. Amendment of section 95 of Principal Act 13. Section 95 of the Principal Act is amended in subsection (5) by the deletion of “section 113(2) ” and the substitution of “sections 113(2) and 115A(5),”. Amendment of section 107 of Principal Act 14. Section 107 of the Principal Act is amended— (a) in subsection (1), by the insertion of “and section 111A(2)(b) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015)” after “section 106(2)(b) ”, and (b) by the substitution of the following for subsection (2): “(2) Where a debtor’s financial position has materially changed in the period between the completion by him or her of a Prescribed Financial Statement under section 50 and the giving of a notice under section 106(2) or, as the case may be, section 111A(2) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015)— (a) the debtor shall inform the personal insolvency practitioner of that fact and of the nature of such change, and (b) the personal insolvency practitioner shall, if he or she considers that the change necessitates the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new statement, and where those circumstances arise a reference in this section to the Prescribed Financial Statement shall be construed as a reference to the new Prescribed Financial Statement.”. Amendment of section 108 of Principal Act 15. Section 108 of the Principal Act is amended by— (a) the deletion of subsection (6), and (b) the substitution of the following for subsections (8) and (9): “(8) (a) Where, at the taking of a vote at a creditors’ meeting in accordance with subsection (1), no creditor votes, the proposed Personal Insolvency Arrangement shall be deemed to have been approved under this section. (b) Where, at the taking of a vote at a creditors’ meeting in accordance with subsection (1), the proposal is not approved in accordance with that subsection or deemed under paragraph (a) to have been approved, subject to section 115A, the Personal Insolvency Arrangement procedure shall terminate and the protective certificate issued under section 95 shall cease to have effect.”. Amendment of section 110 of Principal Act 16. Section 110 of the Principal Act is amended in subsection (1)(a) by deleting “a majority of”. Approval of proposed Personal Insolvency Arrangement where only one creditor 17. The Principal Act is amended by the insertion of the following after section 111: “111A. (1) Where— (a) a personal insolvency practitioner has prepared a proposal for a Personal Insolvency Arrangement and the debtor has consented to that proposal, and (b) only one creditor would be entitled to vote at a creditors’ meeting held under this Chapter (whether in respect of one or more debts), the procedures specified in this section, and not those specified in sections 106 and 108 to 111, shall apply in relation to the approval by that creditor of the proposal for a Personal Insolvency Arrangement. (2) A personal insolvency practitioner referred to in subsection (1) shall— (a) give written notice to the creditor that the proposal for a Personal Insolvency Arrangement has been prepared and that the creditor may, within the period specified in subsection (6)(a), notify the personal insolvency practitioner in writing of his or her approval or otherwise of that proposal, (b) ensure that the notice referred to in paragraph (a) is accompanied by a copy of each of the documents referred to in section 107, and (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in paragraph (b) with the Insolvency Service. (3) A personal insolvency practitioner who has complied with subsection (2) may, where he or she believes it is in the interests of obtaining approval of a proposed Personal Insolvency Arrangement by the creditor and with the consent in writing of the debtor, prepare an amended proposal for a Personal Insolvency Arrangement. (4) Where the personal insolvency practitioner prepares an amended proposal for a Personal Insolvency Arrangement pursuant to subsection (3) he or she shall— (a) give written notice to the creditor that he or she may, within the period specified in subsection (6)(b), notify the personal insolvency practitioner in writing of his or her approval or otherwise of the amended proposal, which notice shall be accompanied by the amended proposal, (b) give the debtor a copy of the documents referred to in paragraph (a), and (c) lodge a copy of the documents referred to in paragraph (a) with the Insolvency Service. (5) A proposal for a Personal Insolvency Arrangement may, before the creditor has notified the personal insolvency practitioner of his or her approval or otherwise of the proposal, be subject to a proposal for a modification where the modification addresses an ambiguity or rectifies an error in the proposed Personal Insolvency Arrangement and where— (a) the modification has been proposed by the creditor or the personal insolvency practitioner, and (b) the debtor gives his or her written consent to the modification. (6) A creditor to whom this section applies shall notify the personal insolvency practitioner in writing of his or her approval or otherwise of a proposal for a Personal Insolvency Arrangement within— (a) 14 days of the giving to him or her of the notice under subsection (2), or (b) if later, 7 days of the date on which a notice under subsection (4)(a) is first given to him or her. (7) A proposal for a Personal Insolvency Arrangement to which this section applies— (a) shall be considered as having been approved by the creditor concerned where that creditor notifies the personal insolvency practitioner in accordance with subsection (6) of the creditor’s approval of that proposal, and (b) where that creditor fails to comply with subsection (6), shall be deemed to have been approved by the creditor concerned. (8) Where a creditor to whom this section applies notifies the personal insolvency practitioner in accordance with subsection (6) that he or she does not approve of the proposal, subject to section 115A, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end and the protective certificate issued under section 95 shall cease to have effect. (9) Where a personal insolvency practitioner fails to give the creditor a notice under subsection (2) before the expiry of the protective certificate, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end. (10) Where this section applies, a reference in section 95(13) to section 110 shall be construed as a reference to this section.”. Amendment of section 112 of Principal Act 18. Section 112 of the Principal Act is amended— (a) by the substitution of the following for subsection (1) (as amended by section 85 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “(1) Where a Personal Insolvency Arrangement is approved at a creditors’ meeting in accordance with section 110 or, as the case may be, deemed under section 108 to have been approved, the personal insolvency practitioner shall as soon as practicable after the meeting has concluded notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by— (a) (i) subject to subparagraph (ii), a certificate with the result of the vote taken at the creditors’ meeting, identifying the proportions of the respective categories of votes cast by those voting at the creditors’ meeting and stating that the requisite proportions of creditors referred to in section 110(1) have approved the proposal for a Personal Insolvency Arrangement, or (ii) where the proposal is deemed under section 108(8)(a) (as amended by section 15 (b) of the Personal Insolvency (Amendment) Act 2015) to have been approved, a certificate to that effect, (b) a copy of the approved Personal Insolvency Arrangement, and (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that— (i) the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91, (ii) the approved Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and (iii) the approved Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted debt) or otherwise affect such a debt.”, (b) by the insertion of the following after subsection (1): “(1A) Where a Personal Insolvency Arrangement is approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015), the personal insolvency practitioner shall as soon as practicable thereafter notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by— (a) a certificate stating that section 111A applies to the proposed Personal Insolvency Arrangement and that the proposal concerned has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) by the only creditor entitled to vote on the proposal, (b) a copy of the approved Personal Insolvency Arrangement, and (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that— (i) the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91, (ii) the approved Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and (iii) the approved Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted debt) or otherwise affect such a debt.”, and (c) in subsection (2), by the insertion of “or, as the case may be, subsection (1A) (inserted by section 18 (b) of the Personal Insolvency (Amendment) Act 2015),” after “the documents referred to in subsection (1) ”. Amendment of section 113 of Principal Act 19. Section 113 of the Principal Act is amended in subsection (1) by the insertion of “or, as the case may be, section 112(1A) (inserted by section 18 (b) of the Personal Insolvency (Amendment) Act 2015)” after “pursuant to section 112(1) (as amended by section 85 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 )”. Amendment of section 115 of Principal Act 20. Section 115 of the Principal Act is amended— (a) in subsection (2), by the substitution of the following for paragraph (a) (iv): “(iv) proposal for a Personal Insolvency Arrangement, as the case may be— (I) has been approved by the requisite proportions of creditors referred to in section 110(1), (II) is one to which section 108(8)(a) (as amended by section 15 (b) of the Personal Insolvency (Amendment) Act 2015) applies, or (III) has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015),”, and (b) by the substitution of the following for subsection (5) (as amended by section 87 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “(5) For the purposes of subsection (2), the appropriate court may accept— (a) the certificate of the personal insolvency practitioner referred to in section 112(1)(a)(i) (as amended by section 18 (a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Personal Insolvency Arrangement has been approved by the requisite proportions of creditors referred to in section 110(1), (b) the certificate of the personal insolvency practitioner referred to in section 112(1)(a)(ii) (as amended by section 18 (a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Personal Insolvency Arrangement is one to which section 108(8)(a) (as amended by section 15 (b) of the Personal Insolvency (Amendment) Act 2015) applies, (c) the certificate of the personal insolvency practitioner referred to in section 112(1A) (inserted by section 18 (b) of the Personal Insolvency (Amendment) Act 2015) as evidence that the Personal Insolvency Arrangement has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7)(inserted by section 17 of the Personal Insolvency (Amendment) Act 2015), and (d) the statement of the personal insolvency practitioner referred to in section 112(1)(c) (inserted by section 85 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ) or, as the case may be, section 112(1A)(c) (inserted by section 18 (b) of the Personal Insolvency (Amendment) Act 2015) as evidence of any matter referred to in subsection (2) which is the subject of that statement.”. Court review of proposed Personal Insolvency Arrangement 21. The Principal Act is amended by the insertion of the following after section 115: “115A. (1) Where— (a) a proposal for a Personal Insolvency Arrangement is not approved in accordance with this Chapter, and (b) the debts that would be covered by the proposed Personal Insolvency Arrangement include a relevant debt, the personal insolvency practitioner may, where he or she considers that there are reasonable grounds for the making of such an application and if the debtor so instructs him or her in writing, make an application on behalf of the debtor to the appropriate court for an order under subsection (9). (2) An application under this section shall be made not later than 14 days after the creditors’ meeting referred to in subsection (16)(a) or, as the case may be, receipt by the personal insolvency practitioner of the notice of the creditor concerned under section 111A(6) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015), shall be on notice to the Insolvency Service, each creditor concerned and the debtor, and shall be accompanied by— (a) a statement of the grounds of the application, which shall include— (i) a statement that the proposal for a Personal Insolvency Arrangement has not been approved in accordance with this Chapter, (ii) other than where the proposed Personal Insolvency Arrangement is one to which section 111A applies, a statement identifying, by reference to the information referred to in paragraph (d)(i)(II) contained in the certificate furnished under paragraph (d), the creditor or creditors who, having voted in favour of the proposal, should, in the opinion of the personal insolvency practitioner, be considered by the court to be a class of creditors for the purpose of this section, and giving the reasons for this opinion, (b) a copy of the proposal for a Personal Insolvency Arrangement, (c) a copy of the report of the personal insolvency practitioner referred to in section 107(1)(d), (d) a certificate— (i) with the result of the vote taken at the creditors’ meeting and identifying— (I) the proportions of the respective categories of votes cast by those voting at the creditors’ meeting, and (II) the creditors who voted in favour of and against the proposal, and the nature and value of the debt owed to each such creditor, or (ii) where applicable, stating that section 111A applies to the proposal and that the creditor concerned has notified the personal insolvency practitioner under section 111A(6) that the creditor does not approve of the proposal, and (e) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that— (i) the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91, (ii) the proposed Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and (iii) the proposed Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted debt) or otherwise affect such a debt. (3) A notice to a creditor under subsection (2) shall be accompanied by a notice indicating that he or she may, within 14 days of the date of the sending of the notice, lodge a notice with the appropriate court, setting out whether or not the creditor objects to the application, and the creditor’s reasons for this. (4) A creditor who lodges a notice under subsection (3) shall at the same time send a copy of the notice to the Insolvency Service, the personal insolvency practitioner and each creditor concerned. (5) Where an application is made under this section before the expiry of the period of the protective certificate, such protective certificate shall continue in force until— (a) the Personal Insolvency Arrangement comes into effect under subsection (13), or (b) one of the following occurs— (i) the time for bringing an appeal against a refusal of the appropriate court to make an order under subsection (9) has expired without any such appeal having been brought, (ii) such appeal has been withdrawn, or (iii) the appeal has been determined. (6) The appropriate court, for the purpose of an application under this section, shall hold a hearing, which hearing shall be on notice to the Insolvency Service, the personal insolvency practitioner and each creditor concerned. (7) A hearing under this section shall be held with all due expedition. (8) The court shall consider whether to make an order under subsection (9) only where— (a) it is satisfied that— (i) the eligibility criteria specified in section 91 have been satisfied, (ii) the mandatory requirements referred to in section 99 have been complied with, and (iii) the proposed Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted debt) or otherwise affect such a debt, and (b) it considers that, having regard to the information before it, including information contained in a notice under subsection (3), no ground specified in section 120 applies in relation to the debtor or the proposed Arrangement. (9) The court, following a hearing under this section, may make an order confirming the coming into effect of the proposed Personal Insolvency Arrangement only where it is satisfied that— (a) the terms of the proposed Arrangement have been formulated in compliance with section 104, (b) having regard to all relevant matters, including the terms on which the proposed Arrangement is formulated, there is a reasonable prospect that confirmation of the proposed Arrangement will— (i) enable the debtor to resolve his or her indebtedness without recourse to bankruptcy, (ii) enable the creditors to recover the debts due to them to the extent that the means of the debtor reasonably permit, and (iii) enable the debtor— (I) not to dispose of an interest in, or (II) not to cease to occupy, all or a part of his or her principal private residence, (c) having regard to all relevant matters, including the financial circumstances of the debtor and the matters referred to in subsection (10)(a), the debtor is reasonably likely to be able to comply with the terms of the proposed Arrangement, (d) where applicable, having regard to the matters referred to in section 104(2), the costs of enabling the debtor to continue to reside in the debtor’s principal private residence are not disproportionately large, (e) the proposed Arrangement is fair and equitable in relation to each class of creditors that has not approved the proposal and whose interests or claims would be impaired by its coming into effect, (f) the proposed Arrangement is not unfairly prejudicial to the interests of any interested party, and (g) other than where the proposal is one to which section 111A applies, at least one class of creditors has accepted the proposed Arrangement, by a majority of over 50 per cent of the value of the debts owed to the class. (10) In considering whether to make an order under subsection (9), the court shall have regard to: (a) the conduct, within the 2 years prior to the issue of the protective certificate under section 95, of— (i) the debtor in seeking to pay the debts concerned, and (ii) a creditor in seeking to recover the debts due to the creditor; (b) the following, where details of them are contained in a notice lodged under subsection (3) by a creditor— (i) a submission made by the creditor under section 98(1) or an indication given by the creditor under section 102(1) and the date on which such submission was made or indication was furnished, and (ii) any alternative option available to the creditor for the recovery of the debt concerned. (11) The registrar of the appropriate court shall notify the Insolvency Service and the personal insolvency practitioner concerned where the court makes or refuses to make an order under subsection (9). (12) On receipt of a notification under subsection (11) of the making of an order under subsection (9), the Insolvency Service shall register the Personal Insolvency Arrangement concerned in the Register of Personal Insolvency Arrangements. (13) The Personal Insolvency Arrangement shall come into effect upon being registered in the Register of Personal Insolvency Arrangements. (14) The court, in an application under this section, shall make such other order as it deems appropriate, including an order as to the costs of the application. (15) For the purposes of its consideration of an application under this section, the appropriate court may accept— (a) the certificate of the personal insolvency practitioner referred to in subsection (2)(d)(i) as evidence of the proportions of the respective categories of votes cast by those voting at the creditors’ meeting and of the creditors who have voted in favour of and against the proposed Personal Insolvency Arrangement and of the nature and value of the debt owed to each such creditor, (b) the certificate of the personal insolvency practitioner referred to in subsection (2)(d)(ii) as evidence that the proposed Arrangement has not been approved in accordance with section 111A, and (c) the statement of the personal insolvency practitioner referred to in subsection (2)(e) as evidence of any matter referred to in subsection (8) which is the subject of that statement. (16) For the purposes of this section, a proposal for a Personal Insolvency Arrangement is not approved in accordance with this Chapter where— (a) at a creditors’ meeting held under this Chapter, it is not approved in accordance with section 110 or, as the case may be, deemed to have been approved under section 108(8) (a) (as amended by section 15 (b) of the Personal Insolvency (Amendment) Act 2015), or (b) in the case of a proposal for a Personal Insolvency Arrangement to which section 111A applies, the creditor concerned has notified the personal insolvency practitioner in accordance with section 111A(6) that the creditor does not approve of the proposal. (17) (a) For the purposes of this section, and subject to paragraph (b), the court may consider— (i) one creditor, or (ii) more than one creditor, where the court considers the creditors to have, in relation to the debtor, interests or claims of a similar nature, to be a class of creditor. (b) In deciding under paragraph (a) whether to consider a creditor or creditors to be a class of creditor, the court shall have regard to the circumstances of the case, including, having regard to the statement of the grounds of the application referred to in subsection (2)(a) and the certificate referred to in subsection (2)(d)(i) — (i) the overall number and composition of the creditors who voted at the creditors’ meeting, and (ii) the proportion of the debtor’s debts due to the creditors participating and voting at the creditors’ meeting that is represented by the creditor or creditors concerned. (18) In this section— ‘relevant debt’ means a debt— (a) the payment for which is secured by security in or over the debtor’s principal private residence, and (b) in respect of which— (i) the debtor, on 1 January 2015, was in arrears with his or her payments, or (ii) the debtor, having been, before 1 January 2015, in arrears with his or her payments, has entered into an alternative repayment arrangement with the secured creditor concerned.”. Amendment of section 119 of Principal Act 22. The Principal Act is amended by the substitution of the following for section 119 (as amended by section 89 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013 ): “119. (1) Subject to this section and section 119A, a Personal Insolvency Arrangement may be varied in accordance with its terms. (2) A personal insolvency practitioner, whether on his or her own initiative or on a request made in accordance with subsection (3), shall propose a variation of a Personal Insolvency Arrangement (in this section referred to as a ‘variation’) where— (a) it appears to the personal insolvency practitioner that there has been a material change in the debtor’s circumstances, and (b) the personal insolvency practitioner is satisfied that there is a reasonable prospect that a variation that addresses such circumstances would be approved in accordance with this section. (3) A debtor or creditor who is bound by a Personal Insolvency Arrangement may request the personal insolvency practitioner to propose a variation of the Arrangement, which request shall be— (a) in writing, (b) accompanied by information or evidence to support the assertion that there has been a material change in the debtor’s circumstances, and (c) accompanied by the written consent of the person making the request to the— (i) making by the personal insolvency practitioner of an enquiry under subsection (4), and (ii) disclosure by the personal insolvency practitioner of personal data of the person, to the extent necessary for such an enquiry. (4) A personal insolvency practitioner shall, within 21 days of receipt of a request under subsection (3), decide whether paragraphs (a) and (b) of subsection (2) apply in relation to the Personal Insolvency Arrangement concerned, and, for that purpose— (a) may request any further information he or she requires from the person who made the request, and (b) may make such enquiries as he or she considers necessary in order to arrive at his or her decision. (5) For the purpose of deciding, whether under subsection (4) or otherwise, whether paragraphs (a) and (b) of subsection (2) apply in relation to the Personal Insolvency Arrangement concerned, the personal insolvency practitioner may require the debtor concerned, where necessary with the assistance of the personal insolvency practitioner, to complete a new Prescribed Financial Statement. (6) Where the personal insolvency practitioner is satisfied that paragraphs (a) and (b) of subsection (2) apply in relation to the Personal Insolvency Arrangement concerned, he or she shall without delay— (a) require the debtor concerned, where necessary with the assistance of the personal insolvency practitioner, to complete a new Prescribed Financial Statement, unless the debtor has completed a Prescribed Financial Statement under subsection (5) and the information contained in it remains complete and accurate, (b) formulate a proposal for a variation, (c) seek the written consent of the debtor to the proposal and, subject to subsection (8), to the calling of a meeting of the creditors of the debtor for the purpose of considering the proposal, and (d) subject to subsection (8), where the consent of the debtor referred to in paragraph (c) has been given, arrange for the holding of the meeting referred to in that paragraph. (7) When calling a creditors’ meeting to be held under this section, the personal insolvency practitioner shall— (a) give each creditor at least 14 days’ written notice of the meeting and the date on which, and the time and place at which, the meeting will be held, (b) ensure that the notice referred to in paragraph (a) is accompanied by— (i) a written proposal for the variation of the Personal Insolvency Arrangement, (ii) a report of the personal insolvency practitioner— (I) describing the outcome for the creditors and for the debtor under the terms of the proposal, and (II) indicating whether or not he or she is of the opinion that the debtor is reasonably likely to be able to comply with the terms of the Personal Insolvency Arrangement as varied in accordance with the proposal, (iii) the Prescribed Financial Statement completed by the debtor under subsection (5) or (6), as the case may be, and (iv) such other information obtained by the personal insolvency practitioner under this section as he or she considers relevant, and (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in paragraph (b) with the Insolvency Service. (8) Where only one creditor would be entitled to vote at a creditors’ meeting under this section (whether in respect of one or more debts), the personal insolvency practitioner shall, in place of holding such a meeting, give notice to the creditor of the proposal for a variation, and paragraphs (b) and (c) of subsection (7) shall apply in respect of that notice. (9) The provisions of sections 99 to 105 and sections 108 to 115 (other than subsections (2) and (3) of section 101, sections 108(9), 109(6), 111A(7) (inserted by section …