Insolvency Bill 'not about helping rich people'

Justice Minister Alan Shatter said today that putting the upper limit of the debt that can be written off under the personal insolvency bill at €3m is not about helping rich people.

Minister Shatter said that anyone who qualifies for debt forgiveness under the legislation is effectively broke, regardless of the size of their debt.

After their recent review of Ireland's bailout progress, Minister for Finance Michael Noonan admitted that the Troika wanted a much lower threshold of €1m.

Minister Shatter has defending the €3m figure, however.

"There was an issue as to whether there should be an upper debt limit at all," he said.

"The Joint Oireachtas Justice Committee, when it reviewed the legislation, suggested the limit should be €10m.

"It isn't about helping people who are particularly rich, anyone in this context is going to be effectively broke, the question is going to be is there any residual funding and income coming in which will benefit creditors."