Plan to overhaul insolvency law ‘not radical enough’

Government plans to overhaul debt and insolvency issues might not be radical enough, a major conference heard yesterday.

Speaking at a Free Legal Aid Centres conference on personal insolvency, Paul Joyce, a senior policy researcher with Flac, said past governments had sought to “defy logic” by not implementing legislation on the issue and now there was a hostage to fortune in the shape of the “moral hazard” argument.

Government proposals in the Personal Insolvency Bill outline three schemes before a possible court application for bankruptcy.