As reported in today’s Irish Times there seems to be big problem with the forthcoming Insolvency Legislation.
The banks do not want mortgages included in any possible write-downs. We say it must include secured debt if the country is to move forward. Additionally, if the new arrangements are to be voluntary then the Banks can effectively veto all proposals with no comeback or appeal. This won’t get the thousands of people struggling with debt anywhere.
The Bill itself will be ready by the end of this month. Lets hope the Government does the right thing and remove these potential stumbling blocks.
Shane Healy, Head of Insolvency, Healy O’Connor Solicitors, Cork and Dublin.