Dáil Éireann Debate, Wednesday - 25 February 2026
199. Deputy John Paul O'Shea asked the Minister for Justice, Home Affairs and Migration for an update on the review of the Personal Insolvency Act 2012; and if he will make a statement on the matter. [15355/26]
Amharc ar fhreagraThe Personal Insolvency Act 2012 established the Insolvency Service of Ireland and introduced three alternative debt solutions to bankruptcy, aimed at returning individuals to solvency. These personal insolvency debt solutions provide vital mechanisms to help individuals resolve their financial difficulties in a structured and legally binding way. Since the Insolvency Service’s establishment, thousands of people have availed of the solutions provided by the 2012 Act.
The insolvency legislation has already been extensively reviewed and developed since 2012. Key reforms have been made by amending legislation, including the Courts and Civil Law (Miscellaneous Provisions) Act 2013, the Personal Insolvency (Amendment) Act 2015, and the Personal Insolvency (Amendment) Act 2021. In addition, the establishment of the Abhaile Mortgage Arrears Resolution Service, in 2016, ensures that borrowers at risk of losing their homes due to mortgage arrears can access free independent expert financial and legal advice to get solutions into place, and can access legal aid to support a section 115A court review application or appeal.
In 2024, the report by the interdepartmental Mortgage Arrears Review Group recommended a series of reforms to Part 3 of the Personal Insolvency Act 2012 that will improve access to personal insolvency and expedite its administration. These proposed reforms are to the areas of process and procedure, eligibility criteria, and the regulation of PIPs.
The work to progress these reforms has been delayed by the protracted negotiations on the Directive of the European Parliament and of the Council of the European Union on harmonising certain aspects of national insolvency laws.
Now that the Directive is close to finalisation, work will commence shortly, in conjunction with the Department of Enterprise, Tourism and Employment on examining what further legislative amendments may be needed to give effect to the Directive.
Within the context of this work, officials are also examining the consolidated legislative reforms identified by the Insolvency Service of Ireland.
