Bank Veto Removal and Insolvency Reform Remain Irish Solution for Irish Debtors

The Association of Personal Insolvency Practitioners (APIP) has responded to yesterday’s announcement that UK-based Stepchange will act as an intermediary between banks and borrowers.  APIP continues to engage with political figures to reform the insolvency system, remove the bank veto and reduce home repossessions through insolvency arrangements.

APIP Chairman, Eric Hendy said; “Considering the imminent changes to the bank veto in personal insolvency arrangements, an organisation funded by the banks could be viewed as a smokescreen.  As representatives of thousands of distressed borrowers in Ireland, we (APIP) view it as a clear conflict.  In comparison to the UK-charity Stepchange, APIP has Irish-based members who are familiar with the complex secured debt and insolvency issues faced by debtors in Ireland.  The pilot project previously run by Stepchange to tackle debt here was unsuccessful.  Personal Insolvency Practitioners (PIPs) were trained specifically to deal with Irish repossessions and debt.  We (APIP) are independent and authorised by the ISI in accordance with the Personal Insolvency Act 2012.”

During the first quarter of 2015 (January to April), family repossession cases rose by 6,000.  Based on an average of three people per household, there are 48,000 citizens in Ireland who face the possibility of homelessness.  “As well as limiting the bank veto in PIAs, we are calling for an immediate review of social housing provision and the mortgage-to-rent process in the context of a PIA, so that families can continue to live in their homes.  We also recommend simplifying the application process for a protective certificate from the courts through the Insolvency Service of Ireland’s application system.”, continued Eric Hendy, Chairman of APIP.

If the proposed insolvency reform takes place, PIPs would be equipped to provide PIA proposals that are appropriate for both the creditor and debtor.  Tara Cheevers, Secretary of APIP, commented; “We would be in a position to ascertain, in advance, whether the court would be likely to approve the proposed arrangement.  PIA proposals are currently being drafted to accommodate the different criteria of the various mortgage lenders.  With a more seamless system, PIPs could represent more borrowers.  We could secure protection from the courts for the debtor within days instead of weeks or months, as is currently the case.  We would be in a stronger position to construct more viable arrangements and reduce the amount of home repossessions before the courts.”

By giving the power to Circuit Court judges, instead of the banks, insolvency arrangements could also be deemed a better alternative to bankruptcy in the case of unregulated mortgages.  “This would remove ambiguity where unregulated entities provided the mortgage and now seek to liquidate their investment in distressed mortgages within two to four years.”  concluded APIP Secretary, Tara Cheevers.

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For further information and/or to arrange an interview(s) with Eric Hendy, Chairman of APIP, or Tara Cheevers, Secretary of APIP, contact Orla Clancy, Media Consultant, at orla@ocpr.ie or telephone 087 938 8882.

Notes to Editor

APIP (Association of Personal Insolvency Practitioners)

The Association of Personal Insolvency Practitioners (APIP) is the largest representative body of personal insolvency practitioners (PIPs) in Ireland.  APIP members are authorised by the Insolvency Service of Ireland (ISI).  With a current membership of 81, APIP collectively represent a significant number of insolvency and bankruptcy clients nationwide who are at various stages of the process. 

Eric Hendy, Chairman of APIP

As the representative for the 81 APIP members throughout Ireland, APIP Chairman, Eric Hendy has and is continuing to engage with various members of the government to progress the current insolvency system in Ireland.

Recent Meetings

Wednesday, 6th May 2015: APIP Chairman, Eric Hendy, met the Tánaiste and Minister for Social Protection, Joan Burton, T.D. and her advisors, and (separate meeting) the Chair of the Oireachtas Finance Committee, Dr. Liam Twomey, Fine Gael T.D. in Dáil Éireann.

Pending Meetings

APIP Chairman, Eric Hendy will continue to meet political figures in the coming weeks to discuss APIP’s proposals for insolvency reform.

Further Information

2015 APIP Committee

Eric Hendy, Chairman of APIP
Tara Cheevers, Secretary of APIP
Mitchell O'Brien, APIP Committee Member
Steven Curtis, APIP Committee Member
John Kenny, APIP Committee Member
Alan McGee, APIP Committee Member