Draft debt resolution scheme is a significant advance

25 January 2012

FLAC said on 25 January 2012 that the publication of a draft debt resolution scheme today is a significant advance to address the problems of seriously over indebted households in Ireland.

The legal rights organisation welcomed the Minister for Justice & Equality's announcement that the overall scheme of the legislation will be debated in the Oireachtas before the final text was settled. That discussion period is to take place between now and the 1st of March 2012. Following more detailed analysis of the complex text, FLAC will be seeking to make further comment once a proper discussion is possible.

FLAC said that the scheme is much more comprehensive than anything that currently exists and has the capacity to make a significant improvement for those who are currently struggling. According to Paul Joyce, Senior Policy Researcher "It will allow people who prove that they cannot repay their debts to avail of one or more schemes to settle that debt either over a period of a year for low level unsecured debt or for up to seven years for those with more significant debts and secured debts".

FLAC's Director Noeline Blackwell welcomed provisions that take account of the need for people to maintain a minimum income, and the provisions which seek to ensure that not every serious debt situation will result in bankruptcy and the loss of the family home.

FLAC remains concerned at the level of power that remains vested in creditors to approve plans proposed by debtors.

/ENDS