An order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 brings the following three new debt settlement arrangements into operation with effect from 31 July 2013:
- Debt Relief Notices: permitting write-offs of qualifying unsecured debts up to €20,000 subject to a three-year supervision period
- Debt Settlement Arrangements: permitting settlement of unlimited unsecured debts over five years
- Personal Insolvency Arrangements: permitting settlement of unlimited unsecured debts and secured debts up to €3 million (or unlimited with creditor’s agreement) over six years
These arrangements offer both debtors and creditors alternative methods of tackling problem debts without resorting to bankruptcy.