Connaughton welcomes Insolvency Bill

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The new Insolvency Bill has been welcomed by Galway East T.D. Paul Connaughton, who said that the provisions of the Bill will provide workable solutions for debt management for many people in the region.

“Since my election last year, I have met a huge number of people from across East Galway who are crushed under huge burdens of debt. I believe that the Bill published today will provide a lifeline for many people who are struggling with debts that are simply unsustainable.

“Trying to deal with unsustainable debt is taking a huge toll on many families. Not alone has the debt sucked away the money that is simply necessary for everyday living, but the strain that it causes is affecting marriages, causing illness, both physical and mental and is taking a huge toll on the lives of many children growing up in houses where people see no way out from this massive onslaught of debt.

“This Bill provides for a number of options in terms of dealing with debt. Debt Relief Notices will allow for the full write-off of qualifying debts of up to €20,000 for those who have no assets or income. Debt Settlement Arrangements will deal with unsecured debts over a five year period and Personal Insolvency Arrangements will deal with secured and unsecured debt of up to €3 million over six years. These arrangements have been designed with the purpose of ensuring that the struggling debtor remains in the family home.

“Reckless lending during a property boom has left many families in East Galway in an extremely difficult situation. This Bill is designed to meet the needs of people who simply cannot keep their heads above water. It is not designed to provide assistance to solvent debtors or automatically write-off negative equity, but those who are struggling are advised to talk to their lenders and banks are being encouraged to come to realistic debt settlements with their debtors.

“This Bill is a step in the right direction and a timely recognition of the huge stress that the current debt burden is placing on many families and its provisions will provide relief to many people in East Galway.”