MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • Personal Insolvency: Will it work?
Uncategorized
Apr 19, 2013 - 10:51

Personal Insolvency: Will it work?

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
Personal Insolvency: Will it work?

New personal insolvency guidelines were published yesterday, aimed at helping to solve the problem of borrowers with unsustainable levels of debt.

While opening up to the new Insolvency Service of Ireland (ISI) could lead to those in financial trouble getting some form of debt writedown, the scheme will not be painless for those who enter it either.

The three solutions put forward – Debt Relief Notice, Debt Settlement Arrangement and Personal Insolvency Arrangement – are aimed at restoring an insolvent individual back to solvency within three to six years – without them becoming bankrupt.

However, the measures put forward by the government and the ISI mean that every cent spent will be monitored like never before with a single adult with no car permitted expenditure of €898.96 in set costs over and above any mortgage or rent payments each month.

Advertisement

That might seem all well and good but when the likes of food, heat and electricity are excluded from that, it is far from a luxurious amount.

Will this work though? And perhaps more importantly will people have the discipline to stick with it?

A reasonable standard of living is described by the ISI as one, which meets a person’s physical, psychological and social needs so they are not worried about people enjoying themselves.

Luxuries are automatically in question with holidays most definitely out, while satellite TV is only allowed if something else is cut out. Children will have to leave fee-paying schools while health insurance will also have to be cut.

The likes of childcare costs, for example, will also be examined on a case-by-case basis while perhaps most worryingly people could also lose their home in the end anyway.

Advertisement

While signing up to such a service will allow people to remain in their homes, this will only remain the case until it is deemed too big for their needs, for example when children leave.

Of course, we’ve had so-called “solutions” before so there will be those who will feel this is just another PR stunt. Past “solutions” have benefitted so few people that you could probably fit all the beneficiaries into one housing estate.

Also, how will the banks react? While Minister for Justice Alan Shatter said yesterday that it would be in their interests to get on board with the new scheme, that gives no guarantees.

Today we ask your opinion on the new guidelines. Have your say in the comments section below...

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • borrowers
  • debt
  • Debt Relief Notice
  • Debt Settlement Arrangement
  • guidelines
  • insolvency
  • Insolvency Service of Ireland
  • ISI
  • personal insolvency
  • Personal Insolvency Arrangement
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement