In the Matter of J.D. Brian Limited (In Liquidation) t/a East Coast Print and Publicity, In the Matter of J.D. Brian Motors Limited (In Liquidation) t/a Belgard Motors, In the Matter of East Coast Car Parts Limited (In Liquidation) and in the Matter of the Companies Acts 1963 - 2009

The Personal Insolvency (Amendment) Act 2015 (the “Act”) was signed into law on 28 July 2015. It introduces a number of changes to the Personal Insolvency Act 2012 (the “2012 Act”). These changes include:

The Bill introduces key changes to the Personal Insolvency Act 2012. These include a new provision allowing for an independent review by the Circuit Court, if creditors such as the mortgage lender refuse a borrower’s proposal for a Personal Insolvency Arrangement to deal with unsustainable debts which include a mortgage on the borrower’s home.

Insolvent companies often hold a large volume of personal data, such as customer lists or user data. Who is responsible for this information? Recently, the Irish High Court decided a case concerning the transfer of patient records from a private hospital in liquidation.

 Introductory remarks

The High Court recently determined the extent to which a secured creditor must comply strictly with the formalities set out in a security instrument when executing a Deed of Appointment of a receiver. The Court ruled that strict compliance is required and that, in this case, this had not occurred.

Background

In a recent challenge to the appointment of a Receiver, the High Court was asked to consider the validity of a Deed of Appointment and whether it complied with the bank’s own mortgage deed. The Court found that failing to comply with the format set down in the mortgage deed can have drastic consequences.

Details of the case

A number of recent High Court cases have highlighted the difficulties being faced by receivers in taking possession of agricultural lands. This is a critical issue for receivers who are being faced with mounting costs and delay as a result of the actions of uncooperative borrowers and / or their agents. The cases have highlighted the potential need for greater judicial resources and better and more vigorous case management.

Receivers appointed over agricultural lands are increasingly resorting to the High Court in order to: 

The Department of Justice and Equality has announced that the Government is to introduce legislation before the summer recess giving Courts the power to review and, where appropriate, approve insolvency deals that have been rejected by banks. This process will represent a reform of the Personal Insolvency framework and "seeks to ensure that fair and sustainable deals are upheld for struggling borrowers willing to work their way out of difficulties with a view to keeping their family home."

A bank has recently successfully challenged the coming into effect of a debt settlement arrangement (“DSA”) on grounds that inaccuracies existed in the debtor’s statement of affairs such that its approval would cause material detriment and prejudice to his creditors.