Insolvency body: Call to freeze debt deal talks is alarmist

The Insolvency Service of Ireland has dismissed as "alarmist" calls for debt deal negotiations to be frozen or stopped amid concern about a legislative loophole that needs to be corrected.

However, rules governing personal insolvency deals between banks and debtors will need to be changed as a “priority” once TDs return from their holidays.

The technical error in the legislation means that some lenders, even if they are owed a minority of the debt by an individual, could scupper debt relief plans.