Resolutions subject to approval by the court

Debt arrangements reached between borrowers and banks will be subject to court approval under the Personal Insolvency Bill.

The legislation creates a new “non-judicial” debt resolution process allowing the write-off of debt of less than €20,000 or, if the sum is greater, to enter into debt settlement arrangements or personal insolvency arrangements with lenders.

It had been intended that the legislation could keep such arrangements away from lengthy and costly court procedures.