Letter to Editor from Eric Hendy, Chairman of APIP - Sunday Business Post

Dear Editor,

The government introduced changes to the personal insolvency system on May 13th.  I am the Chairman of Association of Personal Insolvency Practitioners (APIP).  On behalf of 81 personal insolvency practitioners (PIPs) in Ireland, I met members of the government over the past few months to bring about change for debtors.  During the first quarter of 2015, family repossession cases rose by 6,000.  Keeping debtors in their homes is the priority under the Personal Insolvency Act 2012 and, rest assured, we are exhausting every avenue to make this happen.  I remain conscious that more change needs to happen for debtors in Ireland to return to solvency.

On the 6th May 2015, a week before the new measures were announced, I met the Tánaiste and Minister for Social Protection, Joan Burton, T.D. and her advisors in Dáil Éireann.  On the same day, I had a meeting with the Chair of the Oireachtas Finance Committee, Dr. Liam Twomey, Fine Gael T.D.  We (APIP) lobbied to remove the banks’ power of veto over personal insolvency arrangements and recommended that Circuit Court judges should have the power to review failed plans.  These changes have now been introduced.  We expect to see an increase in the success of insolvency plans.  In fact, recent APIP statistics show that, on average, secured creditors would have received a 33% greater return through an insolvency plan than bankruptcy.  Insolvency plans are often not only a better option for debtors, but also for the banks and other creditors.

In recent months, I had meetings with The Labour Party T.D., Willie Penrose to discuss his Bill to reduce the bankruptcy period from three years to one year, the Minister for Public Expenditure and Reform, Brendan Howlin, T.D. and Regina Doherty, Fine Gael T.D for Meath East, amongst other political figures.

Regina Doherty T.D and I discussed the social housing provision and the mortgage-to-rent scheme.  A huge block to the scheme is that the lenders, and not the borrowers themselves, have to apply to the housing authority.  If the scheme is to work, the qualification criteria need to be income-based only.

We (APIP) want the ISI (Insolvency Service of Ireland) to be more proactive in the courts.  At repossession hearings, the lender should be obliged to inform the borrower of his rights under the Land and Conveyancing Law Reform Act 2013.  Many borrowers are not present at the hearings and, then, cannot adjourn the proceedings to appoint a PIP.  In their absence, repossession orders are being granted – to the benefit of the banks.  I urge borrowers to attend the hearings.  In an effort to reduce and adjourn repossession orders, APIP members will now be present in the insolvency court. 

We want debtors in Ireland to know that with the new – and more – changes, APIP members can help them to return to solvency and protect their family homes and reasonable living threshold.  This is what the Personal Insolvency Act 2012 set out to achieve.  I welcome the new measures introduced on the 13th May 2015 and I am continuing to engage with members of the government to facilitate further reform for Irish people who are in financial distress.

Yours, etc,

Eric Hendy

Chairman of APIP (Association of Personal Insolvency Practitioners)