Insolvency guidelines not designed for 'micro-management' of lives

The Director of the new Insolvency Service of Ireland has said the scheme is not designed to force people out of their jobs.

Lorcan O'Connor said anyone who enters a personal insolvency arrangement - should not expect to live in luxury nor at a subsistence level.

There will be a number of strict conditions for people who avail of the service - depending on a household's composition and access to public transport.

For example - a single adult with a car will have a budget of €1,300 a year - while a two adult household with no car will be allowed just over €1,300.

The living expenses will provide for sporting activities and trips to the cinema but not for holidays - while the guidelines have said that cable TV is not necessary.

The guide also said that a reasonable amount of money will be allocated for spending on childcare or mortgage repayments - depending on circumstances.

“These guidelines are not designed to force people out of their jobs in fact it is quite the opposite," said Lorcan O'Connor

"The entire objective behind theses new insolvency arrangements are to ensure that people stay in their jobs continue top contribute to the economy and have a second chance

"They are not designed for the micro-management of people’s day to day lives