Bill  Huge Disappointment to Tens of Thousands in Mortgage Distress: Crowe

Speaking following this week’s Oireachtas debate on the Personal Insolvency Bill, Tallaght based Sinn Féin TD Seán Crowe said that while the legislation was long overdue,  he said it didnt go far enough and will be a huge disappointment to the tens of thousands of families currently in mortgage distress.“

Crowe said that  the legislation will  a bitter disappointment  for many of families that are in mortgage distress, the Bill gives the banks  complete power in relation to personal insolvency arrangements.

Deputy Crowe said:

“When the outline  of the Bill was published we said that it was essential that the proposed Insolvency Service be independent  and that a more humane approach to  individuals in bankruptcy was needed. 

“It will be a  bitter disappointment to the tens of thousands of families that are in mortgage distress, that the Bill provides for the banks having complete power in relation to personal insolvency arrangements.

“Sinn Féin submitted a number of amendments and had called for an Independent Agency empowered to enforce legally binding settlements on debtor and creditor. The only other option open to people in serious arrears is bankruptcy.

“While we welcome the shortening of the bankruptcy term from 12 to three years, we are mindful that anyone entering bankruptcy couldl lose all their assets, including their home.

“Our position has been that people should be helped to remain living in their homes and that the newly established Independent Agency examine in a case-by-case basis, how to actually  make a  mortgage debt sustainable.While welcoming some elements of the legislation we felt that the Personal Insolvency Bill didnt go far enough to satisfey the needs of tens of thousands of those  householders currently in morgage distress.”