The Minister for Justice and Equality has made an order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 with effect from Friday 1 March 2013.
The provisions to be commenced with effect from this date are as follows:
This Act provides for the winding up of IBRC, the appointment of a Special Liquidator and other connected matters. This legislation was signed into law by the President on 7 February 2013.
Following the enactment of the Personal Insolvency Act, the first steps have been taken to implement the new regime in the Irish insolvency landscape with the making of two Ministerial Orders by the Minister for Justice, Mr. Alan Shatter.
The Orders set 1 March 2013 as the establishment date for the Insolvency Service of Ireland which will operate the new debt resolution arrangements provided for in the Act. The Commencement Orders also enables the Insolvency Service to begin authorising approved intermediaries and personal insolvency practitioners.
This Briefing contains a general summary of developments and is not a complete or definitive statement of the law. It also updates the Briefing published in July 2012 on the Personal Insolvency Bill. Specific legal advice should be obtained where appropriate.
New legislation alters the law and procedures of personal insolvency in radical ways. The Personal Insolvency Act 2012 establishes an independent Insolvency Service of Ireland and introduces new insolvency procedures for addressing unsecured debts (of any value) and secured debts (up to €3 million in aggregate but without limit in the case of agreement). Current bankruptcy laws are amended, including a reduction of the bankruptcy term from 12 years to 3 and the carve-out of pension assets from the bankrupt’s estate.
On 26 December last, the Personal Insolvency Act 2012 was signed into law by the President.
The various provisions of the Act will come into force through commencement orders which will be made by the Minister for Justice. It is expected that certain sections of the Act relating to its Establishment Day and related provisions, will be commenced shortly.
The remaining provisions will then come into operation on a phased basis under Section 1(2) of the Act, as designated by orders to be made by the Minister.
The Personal Insolvency Bill was signed into law by the President on 26 December 2012.
The Act provides for:
On 9th January 2013 the National Pensions Reserve Fund (NPRF) announced the creation of three new funds to provide equity, credit and restructuring / insolvency investment in the Irish SME sector.
SME Equity Fund
There have been a number of recent developments regarding the current system of examinership and the legislation governing repossession and other lender’s rights. Norman Fitzgerald, Partner and Head of Eversheds’ Insolvency Group, discusses the proposed amendments and their likely impact.
Circuit Court Provisions for Examinership
The Personal Insolvency Bill has now passed through the Dail and will commence in the Seanad. The Minister for Justice has commented that the intention is still to have the Bill enacted by Christmas.