Insolvency law - Unseemly mudslinging

Independent TD Stephen Donnelly’s assertion that members of the Oireachtas Finance Committee do not take their work “all that seriously” seemed disturbingly real.

The relative indifference appeared to have been confirmed by the failure of any of the committee to point out the Personal Insolvency Arrangements due to come into effect next week could extend over 20 years.

There has been some unseemly mudslinging, with suggestions yesterday that bankers have been trying to undermine the new insolvency measures before they even come into effect. David Hall of the Irish Mortgage Holders Organisation accused the banks of trying to subvert the measures.

Former minister Ivan Yates — who has been enjoying a high profile following his return from Wales, where he lived for 16 months while availing of the more liberal British bankruptcy laws — has been particularly critical of AIB.

He contends that he was essentially compelled to leave this country, because AIB rejected a settlement that would yield up to 86 cents in the euro on his debts. He has drafted a book in which he has entitled the chapter on his experiences with that bank — “Arrogant, inhumane bastards”.

There is a danger that the insolvency plans could get stuck in the mud.