Court Review Process for Personal Insolvency Signed into Law
A court review process for those seeking a Personal Insolvency Arrangement was brought into law on November 20th 2015. This essentially means that if you cannot come to an agreement with your bank regarding unsustainable debts then the courts can intervene and can impose an agreement on the bank.
The Minister for Justice and Equality, Frances Fitzgerald TD, has signed an order bringing into force on Friday 20 November the remaining provisions of the Personal Insolvency (Amendment) Act 2015, including the new Court review where a mortgage lender rejects the borrower’s personal insolvency proposal.
Under the new provisions, a borrower can apply for review by the Courts, if creditors such as the mortgage lender refuse the borrower’s proposal for a Personal Insolvency Arrangement to deal with unsustainable debts which include the mortgage on their home. The Court can examine the proposal refused by the creditors, subject to certain conditions, and if it considers the proposal fair and sustainable, using the tests set down in the legislation, will have power to impose the proposal on the creditors who voted against it.