Press release
Minister McEntee announces continuing waiver of personal insolvency application fees for a further 3 years
Published on
Last updated on
Published on
Last updated on
The Minister for Justice, Helen McEntee TD, announced today that she has consented to the making, by the Insolvency Service of Ireland, of Regulations to continue the waiver of personal insolvency application fees for a further 3 years, until 31 December 2023.
Welcoming the waiver extension, the Minister said:
"Continuing the waiver of fees for personal insolvency applications is a small but important step in the government’s recognition of the real financial difficulties faced by many households, and our ongoing efforts to help remove barriers for mortgage holders and others who wish to avail of personal insolvency solutions."
The government first waived all fees payable to the Insolvency Service, and to the Courts, on applications for personal insolvency solutions in 2014. This was done in response to concerns that such fees could pose financial hardship for those already struggling with debt, and could act as an obstacle to people applying for help under the Personal Insolvency Acts.
The Minister noted that:
"The Insolvency Service of Ireland has always worked to encourage the take-up of, and engagement with, personal insolvency solutions. A reintroduction of fees would run contrary to such efforts at a time when many are affected by the economic impact of the COVID-19 pandemic and worried about potential economic risks arising from Brexit.
"The overall benefits to be gained from getting debtors back to solvency, helping people to get back on with their lives again, far outweigh the loss of exchequer income from a waiver of fees over the next three years."
Following a previous extension in 2017, which was also for a three-year period, the waiver will be extended for a further three years, until 31 December 2023. The position will be re-evaluated in 2023, in the light of the overall economic situation of those seeking to deal with their debts and return to solvency.
ENDS
The Regulations will amend the Personal Insolvency Act 2012 (Prescribed Fees) Regulations 2015 (S.I. No. 620 of 2015), as amended by Regulation 2 of the Personal Insolvency Act 2012 (Prescribed Fees) (Amendment) Regulations 2017 (S.I. No. 609 of 2017), by substituting “31 December 2023” for “31 December 2020” in Regulation 6.
The Regulations may be cited as the Personal Insolvency Act 2012 (Prescribed Fees) (Amendment) Regulations 2020 and will come into operation on 1 January 2021 until 31 December 2023.
Section 20 of the Personal Insolvency Act 2012 specifies that the Insolvency Service of Ireland (‘ISI’) may prescribe fees for its services with the consent of the Minister. The Insolvency Service’s power under section 20(1) to prescribe fees includes the power to provide for exemptions from the payment of fees, or waiving, remitting or refunding fees (in whole or in part), in different circumstances or classes of circumstances or in different cases or classes of cases.
Section 29(2) of the Act provides that an application for a Debt Relief Notice (‘DRN’) must be accompanied by such fee (if any) as may be prescribed. Sections 59(2) and 93(2) of the Act contain similar provisions in relation to an application for a Protective Certificate in relation to a Debt Settlement Arrangement (‘DSA’) and a Personal Insolvency Arrangement (‘PIA’) respectively.
A Debt Relief Notice (DRN) is an insolvency solution for people who have a low income, few assets and debts of less than €35,000. A Debt Settlement Arrangement (DSA) is an insolvency solution for people who have unsecured debts (e.g. credit cards, loans, overdrafts etc.) A Personal Insolvency Arrangement (PIA) is an insolvency solution for people with unsecured and secured debts.
Upon its establishment in 2013, the ISI made a regulation prescribing the relevant fees to be charged. These were set at €100 for a DRN, €250 for a DSA and €500 for a PIA, as provided in the Personal Insolvency Act 2012 (Prescribed Fees) Regulations 2013 (S.I. No. 329 of 2013).
In October 2014, following feedback from stakeholders and service users, the Personal Insolvency Act 2012 introduced a waiver of fees until the end of 2015. This waiver was further extended to the end of 2017 by the Personal Insolvency Act 2012 (Prescribed Fees) Regulations 2015, and was once again extended again to the end of 2020 by the Personal Insolvency Act 2012 (Prescribed Fees) (Amendment) Regulations 2017.