Insolvency Arrangements Should Go Ahead without Bank's Consent, says APIP Chairman

Ahead of expected changes to the insolvency service, APIP (Association of Personal insolvency Practitioners), the largest representative body of personal insolvency practitioners (PIPs) in Ireland, has announced its support for the Personal Insolvency (Amendment) Bill 2015 and recommends further new measures.

Eric Hendy, Chairman of APIP commented; “The system is working – for some people.  We want an improved system that works for everyone who is insolvent.  With the current system, the banks have the power to veto personal insolvency arrangements.  While Circuit Court judges are issuing protective certificates, we put forward that the judges should have the power to review failed insolvency plans.  If an insolvency arrangement is a better option than bankruptcy the judge should have the power to enforce the arrangement, with or without the bank’s consent.”

On the 1st January 2015, the banks had lodged 7,101 civil bills for repossession.  “The new insolvency measures were introduced in Ireland to minimise the possibility of people becoming homeless.  Before a repossession order is granted, it should be mandatory for homeowners to seek the services of a PIP so that losing their homes is a last resort.”, continued Eric Hendy.

Willie Penrose, The Labour Party T.D., who introduced the Bill in the Dáil, proposes to reduce the bankruptcy term from three years to one year.  “APIP support the Bill and we believe that payment orders should be shortened from five years to three years.”, commented Eric Hendy.  This week, An Taoiseach Enda Kenny, T.D., stated that reducing the bankruptcy period would affect small and medium-sized enterprises.  “We are all small business owners and understand the consequences clearly.  If a debtor has no money, he cannot pay, bankrupt or not.  In the interests of economic recovery, people need to be given a second chance to start again, build businesses and create employment at home, and not abroad.” said APIP Chairman, Eric Hendy.

Members of the Association of Personal Insolvency Practitioners (APIP) consist of practitioners 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. 

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For further information and/or to arrange an interview with Eric Hendy, Chairman of AIP, contact Orla Clancy, Media Consultant, at orla@ocpr.ie or telephone 087 938 8882.

Notes to Editor

Eric Hendy, Chairman of APIP

APIP Chairman, Eric Hendy has and is continuing to engage with various pillars of the government to progress the current insolvency system in Ireland. 

As the representative for the 81 APIP members throughout Ireland, Mr Hendy met with The Labour Party T.D., Willie Penrose on Wednesday, 15th April 2015.

Mr Hendy is meeting the Minister for Public Expenditure and Reform, Brendan Howlin, T.D. today (Friday, 24th April 2015).

Individual members of the APIP committee are also presenting recommendations to heads of state.  For example, Mitchell O’Brien presented An Taoiseach, the Tánaiste and the Minister for Justice and Equality, with a proposal to limit the creditor’s veto in PIAs on the 28th January 2015.

Further Information

2015 APIP Committee

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