Act appears to have been hijacked by banks to avoid write-offs

Guidelines need to be flexible in a case-to-case basis, writes Paul C Carroll

The proposed insolvency guidelines, leaked over the past two weekends, have generated plenty of negative reaction and newspaper headlines.

Unfortunately, it seems that the purpose of the insolvency act — to help people get relief from excess debt — is once again being hijacked by creditors’ interest, and specifically banks, in order to avoid the inevitable debt write-offs.