Personal Insolvency Act 2012
Number 44 of 2012
PERSONAL INSOLVENCY ACT 2012
REVISED
Updated to 1 January 2024
This Revised Act is an administrative consolidation of the Personal Insolvency Act 2012. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.
All Acts up to and including the Electoral (Amendment) Act 2023 (40/2023), enacted 19 December 2023, and all statutory instruments up to and including the Income Tax (Employments) Regulations 2024 (S.I. No. 1 of 2024), made 4 January 2024, were considered in the preparation of this Revised Act.
Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to revisedacts@lawreform.ie.
Number 44 of 2012
PERSONAL INSOLVENCY ACT 2012
REVISED
Updated to 1 January 2024
ARRANGEMENT OF SECTIONS
Preliminary and General
Section
1. Short title and commencement.
6. Repeals. (Repealed)
Insolvency Service
8. Establishment of Insolvency Service.
9. Functions of Insolvency Service.
10. Composition of Insolvency Service.
12. Staff of Insolvency Service.
16. Reports by the Insolvency Service.
19. Appearance before other committees of Houses of Oireachtas.
20. Power to charge and recover fees.
21. Advances by Minister to Insolvency Service.
21A. Retention of information by Insolvency Service. (Repealed)
22. Restriction of Freedom of Information Acts 1997 and 2003. (Repealed)
23. Guidelines on reasonable standard of living, reasonable living expenses for debtors.
24. Insolvency Service may communicate by electronic means.
Insolvency Arrangements
Debt Relief Notices
25. Interpretation of Chapter 1.
26. Eligibility criteria for a Debt Relief Notice.
27. Initiation of Debt Relief Notice process.
28. Creditor consent required for issue of Debt Relief Notice in respect of excludable debt.
29. Application for Debt Relief Notice.
30. Consideration by Insolvency Service of application under section 29.
31. Referral of application to appropriate court for issue of Debt Relief Notice.
32. Contents of Debt Relief Notice.
33. Duties of Insolvency Service on issue of Debt Relief Notice.
34. Duration of Debt Relief Notice.
35. Effect of issue of Debt Relief Notice.
36. General obligations of debtor arising under this Chapter.
37. Payment by specified debtor of portion of specified debts.
38. Treatment by Insolvency Service of sums received under section 36 or 37.
39. Power to amend Debt Relief Notice.
40. Investigation by Insolvency Service.
41. Application by Insolvency Service for direction of court.
42. Application by person affected to court.
43. Creditor objection during supervision period.
44. Application by Insolvency Service to have Debt Relief Notice terminated.
45. Effect of termination of Debt Relief Notice.
46. Discharge from specified qualifying debts.
Appointment of personal insolvency practitioner for purposes of Chapter 3 or 4
49. Appointment of personal insolvency practitioner.
49A. Termination by a debtor of his or her appointment of a personal insolvency practitioner.
49B. Termination by a personal insolvency practitioner of his or her appointment by a debtor.
50. Completion of Prescribed Financial Statement.
51. Provisions relating to pension arrangements.
52. Personal insolvency practitioner to advise debtor.
53. Instruction by debtor to personal insolvency practitioner to make proposal for arrangement.
54. Statement to be prepared by personal insolvency practitioner.
54A. Performance by others of certain functions of personal insolvency practitioner
Debt Settlement Arrangements
55. Debt Settlement Arrangement: General Conditions.
56. Debt Settlement Arrangement permitted once only.
57. Debt Settlement Arrangement: Eligibility criteria.
58. Creditor consent required for inclusion of excludable debt in Debt Settlement Arrangement.
59. Debt Settlement Arrangement: Application for protective certificate.
62. Debt Settlement Arrangement: Effect of issue of protective certificate.
63. Debt Settlement Arrangement: Right of appeal as respects protective certificate.
65. Mandatory requirements concerning Debt Settlement Arrangement.
66. Debt Settlement Arrangement: Non-exhaustive list of matters for possible inclusion.
67. Preferential debts in Debt Settlement Arrangement.
68. Secured creditors and Debt Settlement Arrangement.
69. Principal private residence in Debt Settlement Arrangement.
70. Debt Settlement Arrangement: Calling of creditors’ meeting.
72. Debt Settlement Arrangement: Conduct of creditors’ meeting.
73. Debt Settlement Arrangement: Voting at creditors’ meeting.
74. Debt Settlement Arrangement: Procedures for the conduct of creditors’ meetings.
74A. Approval of proposed Debt Settlement Arrangement where only one creditor.
77. Determination of objection lodged under section 75.
78. Coming into effect of Debt Settlement Arrangement.
79. Effect of Debt Settlement Arrangement.
80. Operation of terms of Debt Settlement Arrangement.
81. General duties and obligations of debtor arising under Chapter 3.
82. Variation of a Debt Settlement Arrangement.
83. Application to appropriate court to have Debt Settlement Arrangement terminated.
84. Debt Settlement Arrangement deemed to have failed after 6 month arrears default.
85. Effect of premature termination of Debt Settlement Arrangement on debts.
86. Successful completion of Debt Settlement Arrangement.
87. Grounds of challenge by creditor to coming into effect of Debt Settlement Arrangement.
88. Debt Settlement Arrangement: Excessive pension contributions.
Personal Insolvency Arrangements
89. Personal Insolvency Arrangement: General Conditions.
90. Personal Insolvency Arrangement permitted once only.
91. Eligibility criteria for a Personal Insolvency Arrangement.
92. Creditor consent required for inclusion of excludable debt in Personal Insolvency Arrangement.
93. Application for protective certificate.
94. Consideration by Insolvency Service of application for protective certificate.
95. Referral of application to court for issue of protective certificate.
96. Effect of issue of protective certificate.
97. Right of appeal as respects protective certificate.
99. Mandatory requirements concerning Personal Insolvency Arrangement.
101. Preferential debts in Personal Insolvency Arrangement.
102. Secured creditors and Personal Insolvency Arrangement.
103. Protections for secured creditors in Personal Insolvency Arrangement.
104. Principal private residence in Personal Insolvency Arrangement.
106. Calling of creditors’ meeting.
108. Voting rights at creditors’ meetings.
109. Conduct of creditors’ meeting for consideration of proposed Personal Insolvency Arrangement.
110. Proportion of creditors required to approve Personal Insolvency Arrangement.
111. Procedures for the conduct of creditors meetings.
111A. Approval of proposed Personal Insolvency Arrangement where only one creditor.
114. Determination of objection lodged under section 112.
115. Coming into effect of Personal Insolvency Arrangement.
115A. Court review of proposed Personal Insolvency Arrangement.
116. Effect of Personal Insolvency Arrangement.
117. Operation of terms of Personal Insolvency Arrangement.
118. General duties and obligations of debtor arising under Chapter 4.
119. Variation of a Personal Insolvency Arrangement.
119A. Variation of Personal Insolvency Arrangement confirmed by order under section 115A.
121. Excessive pension contributions.
122. Application to appropriate court to have Personal Insolvency Arrangement terminated.
123. Personal Insolvency Arrangement deemed to have failed after 6 month arrears default.
124. Effect of premature termination of Personal Insolvency Arrangement on debts.
125. Successful completion of Personal Insolvency Arrangement.
Offences under Part 3
126. False representations and omissions.
127. Breach of obligation under Part 3.
128. Concealment or falsification of documents.
129. Fraudulent disposal of property.
130. Obtaining credit or engaging in business by a debtor while insolvency arrangement is in effect.
131. Unauthorised person acting as approved intermediary.
Miscellaneous
133. Register of Insolvency Arrangements.
136. Prescribed Financial Statement.
137. Guidelines and codes of practice.
138. Application of laws in relation to netting agreements, etc.
139. Debts in currency other than currency of the State.
140. Transmission of documents by electronic means.
141. Review of operation of Part 3.
Bankruptcy
142. Amendment of section 3 of Bankruptcy Act 1988.
143. Amendment of section 7 of Bankruptcy Act 1988.
144. Amendment of section 8 of Bankruptcy Act 1988.
145. Amendment of section 11 of Bankruptcy Act 1988.
146. Amendment of section 12 of Bankruptcy Act 1988.
147. Amendment of section 14 of Bankruptcy Act 1988.
148. Amendment of section 15 of Bankruptcy Act 1988.
149. Amendment of section 39 of Bankruptcy Act 1988.
150. Insertion into Bankruptcy Act 1988 of new sections 44A and 44B.
151. Amendment of section 45 of Bankruptcy Act 1988.
152. Amendment of section 57 of Bankruptcy Act 1988.
153. Amendment of section 58 of Bankruptcy Act 1988.
154. Amendment of section 59 of Bankruptcy Act 1988.
155. Insertion into Bankruptcy Act 1988 of new section 65A.
156. Amendment of section 81 of Bankruptcy Act 1988.
157. Amendment of section 85 of Bankruptcy Act 1988.
158. Amendment of section 123 of Bankruptcy Act 1988.
Regulation of Personal Insolvency Practitioners
General Provisions
160. Unauthorised person acting as personal insolvency practitioner.
161. Regulations that may be made by Insolvency Service regarding personal insolvency practitioners.
162. Register of Personal Insolvency Practitioners.
163. Application for authorisation to carry on practice as personal insolvency practitioner.
164. Authorisation to carry on practice as personal insolvency practitioner or refusal to authorise.
165. Notification to applicant of refusal to authorise, etc.
166. Renewal of authorisation to carry on practice as a personal insolvency practitioner.
167. Notification to applicant of refusal to renew authorisation, etc.
168. Provision of information by Garda Síochána and Central Bank.
169. Appeal to Circuit Court against decision of Insolvency Service.
General Obligations of Personal Insolvency Practitioners
171. Professional indemnity insurance.
172. Fees and charges by personal insolvency practitioners.
Accounts and Related Matters
173. Keeping and preservation by personal insolvency practitioner of accounts and records.
174. Control of banking accounts or assets of personal insolvency practitioners.
175. Power of Insolvency Service to deal with documents.
Complaints, Investigations and Sanctions
176C. Powers of Authorised Officers.
176D. Notification by Authorised Officer.
177. Panel of persons to act as members of Complaints Committee.
178. Complaints against personal insolvency practitioners.
181. Measures to assist inspector in carrying out investigation.
182. Preparation of report by inspector and consideration of matter by the Complaints Committee.
183. Appeal to High Court against determination of Complaints Committee.
184. Matters to be considered in determining sanctions to be imposed.
185. Publication of sanctions, etc.
186. Restriction of right of access to personal data in certain circumstances.
Specialist Judges of Circuit Court
187. Amendment of Courts (Establishment and Constitution) Act 1961.
188. Amendment of section 17 of Courts (Supplemental Provisions) Act 1961.
189. Amendment of Courts (Supplemental Provisions) Act 1961.
190. Amendment of section 46 of Courts (Supplemental Provisions) Act 1961.
191. Number of specialist judges.
192. Amendment of Courts and Court Officers Act 1995.
193. Amendment of Courts Act 1977.
194. Amendment of section 10 of Courts of Justice Act 1947.
195. Amendment of section 38 of Courts of Justice Act 1924.
196. Amendment of section 66 of Courts of Justice Act 1924.
197. Amendment of Courts Act 1973.
198. Amendment of Law Reform Commission Act 1975.
199. Continuity of administration of justice not to be affected.
Repeals
Provisions applicable to Oral Hearings conducted pursuant to SECTIONS 181 and 182.
Oral Hearing conducted by inspector pursuant to SECTION 181(15)
Oral Hearing conducted by Complaints Committee pursuant to SECTION 182(6)
Complaints Panel and Complaints Committees
Acts Referred to
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2001, No. 47 |
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1988, No. 27 |
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Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 |
2010, No. 24 |
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1993, No. 8 |
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1995, No. 24 |
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1973, No. 26 |
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1977, No. 11 |
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1995, No. 31 |
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2002, No. 15 |
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2009, No. 36 |
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1961, No. 39 |
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1924, No. 10 |
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1947, No. 25 |
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1961, No 39 |
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1997, No. 15 |
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Data Protection Acts 1998 and 2003 |
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Deeds of Arrangement Act 1887 |
50 & 51 Vict. c. 57 |
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1976, No. 27 |
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1976, No. 11 |
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Financial Emergency Measures in the Public Interest (Amendment) Act 2011 |
2011, No. 39 |
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Freedom of Information Acts 1997 and 2003 |
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1975, No. 3 |
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2009, No. 30 |
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2011, No. 36 |
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2001, No. 37 |
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2011, No. 2 |
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1995, No. 25 |
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2009, No. 15 |
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Proceeds of Crime Acts 1996 and 2005 |
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2011, No. 40 |
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Public Service Management (Recruitment and Appointments) Act 2004 |
2004, No. 3 |
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Public Service Superannuation (Miscellaneous Provisions) Act 2004 |
2004, No. 7 |
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2005, No. 26 |
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1993, No. 21 |
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1957, No. 6 |
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1938, No. 37 |
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1997, No. 39 |
Number 44 of 2012
PERSONAL INSOLVENCY ACT 2012
REVISED
Updated to 1 January 2024
AN ACT TO AMEND THE LAW RELATING TO INSOLVENCY, TO AMEND THE BANKRUPTCY ACT 1988, TO PROVIDE FOR THE ESTABLISHMENT AND FUNCTIONS OF A BODY TO BE KNOWN AS SEIRBHÍS DÓCMHAINNEACHTA NA hÉIREANN OR, IN THE ENGLISH LANGUAGE, THE INSOLVENCY SERVICE OF IRELAND, AND, IN PARTICULAR, IN THE INTERESTS OF THE COMMON GOOD (INCLUDING THE STABILITY OF THE FINANCIAL SYSTEM IN THE STATE)AND HAVING REGARD TO THE FOLLOWING OBJECTIVES—
(a)THE NEED TO AMELIORATE THE DIFFICULTIES EXPERIENCED BY DEBTORS IN DISCHARGING THEIR INDEBTEDNESS DUE TO INSOLVENCY AND THEREBY LESSEN THE ADVERSE CONSEQUENCES FOR ECONOMIC ACTIVITY IN THE STATE,
(b)THE NEED TO ENABLE CREDITORS TO RECOVER DEBTS DUE TO THEM BY INSOLVENT DEBTORS TO THE EXTENT THAT THE MEANS OF THOSE DEBTORS REASONABLY PERMITS, IN AN ORDERLY AND RATIONAL MANNER, AND
(c)THE NEED TO ENABLE INSOLVENT DEBTORS TO RESOLVE THEIR INDEBTEDNESS (INCLUDING BY DETERMINING THAT DEBTS STAND DISCHARGED IN CERTAIN CIRCUMSTANCES) IN AN ORDERLY AND RATIONAL MANNER WITHOUT RECOURSE TO BANKRUPTCY, AND TO THEREBY FACILITATE THE ACTIVE PARTICIPATION OF SUCH PERSONS IN ECONOMIC ACTIVITY IN THE STATE,
TO PROVIDE FOR ADDITIONAL MECHANISMS AND ARRANGEMENTS RELATING TO INSOLVENCY TO FACILITATE THE ACHIEVEMENT OF THOSE OBJECTIVES, TO PROVIDE FOR THE APPOINTMENT, FUNCTIONS, POWERS AND JURISDICTION OF NEW JUDGES OF THE CIRCUIT COURT TO BE STYLED SPECIALIST JUDGES OF THE CIRCUIT COURT AND, FOR THAT PURPOSE, TO AMEND THE COURTS (ESTABLISHMENT AND CONSTITUTION) ACT 1961 AND THE COURTS (SUPPLEMENTAL PROVISIONS) ACT 1961 AND CERTAIN OTHER ENACTMENTS, TO PROVIDE FOR THE REGULATION, SUPERVISION AND DISCIPLINE OF PERSONAL INSOLVENCY PRACTITIONERS, AND TO PROVIDE FOR CONNECTED MATTERS.
[26th December, 2012]
BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:
Annotations
Editorial Notes:
E1
Fees prescribed and exempted in respect of proceedings under Act (30.10.2014) by Supreme Court, Court of Appeal and High Court (Fees) Order 2014 (S.I. No. 492 of 2014), art. 7(1), in effect as per art. 1(2).
E2
Fees prescribed and exempted in respect of proceedings under Act (30.10.2014) by Circuit Court (Fees) (No. 2) Order 2014 (S.I. No. 491 of 2014), art. 5, in effect as per art. 1(2).
E3
Power granted to Court to adjourn certain proceedings to facilitate making of proposal for Personal Insolvency Arrangement under Act (31.07.2013) by Land and Conveyancing Law Reform Act 2013 (30/2013), s. 2(2), S.I. No. 289 of 2013.
E4
Entitlement of persons who have entered into a Debt Settlement Arrangement or a Personal Insolvency Arrangement, or who hold a relevant residential property in trust for creditors pursuant to the terms of a Debt Settlement Arrangement or a Personal Insolvency Arrangement, to apply to Revenue Commissioners for deferral of local property tax provided by Finance (Local Property Tax) Act 2012 (52/2012), s. 133B, as inserted (13.03.2013) by Finance (Local Property Tax) (Amendment) Act 2013 (4/2013), s. 13(d), commenced on enactment.
E5
Previous affecting provision: fees in respect of proceedings under Act prescribed (3.02.2014) by Supreme Court and High Court (Fees) Order 2014 (S.I. No. 24 of 2014), art. 7 and sch. 1, part 2 (items 74 and 75), in effect as per art. 1(2); (30.10.2014) by Supreme Court, Court of Appeal and High Court (Fees) Order 2014 (S.I. No. 492 of 2014), art. 11, in effect as per art. 1(2).
E6
Previous affecting provision: fees in respect of proceedings under Act prescribed (3.02.2014) by Circuit Court (Fees) Order 2014 (S.I. No. 23 of 2014), art. 5 and sch. part 4, items 1-3, in effect as per art. 1(2); revoked (30.10.2014) by Circuit Court (Fees) (No. 2) Order 2014 (S.I. No. 491 of 2014), art. 6, in effect as per reg. 1(2).
E7
Previous affecting provision: fees in respect of proceedings under Act prescribed (3.12.2013) by Supreme Court and High Court (Fees) (No. 2) Order 2013 (S.I. No. 466 of 2013), arts. 2, 6 and sch. 1 part 3 (items 73 - 74), in effect as per art. 1(2); revoked (3.02.2013) by Supreme Court and High Court (Fees) Order 2014 (S.I. No. 24 of 2014), art. 11, in effect as per art. 1(2).
E8
Previous affecting provision: fees prescribed in respect of proceedings under Act (10.07.2013) by Supreme Court and High Court (Fees) Order 2013 (S.I. No. 239 of 2013), arts. 2, 3, 7 and sch. 1 part 3 (items 73 - 74), in effect as per art. 1(2); revoked (3.12.2013) by Supreme Court and High Court (Fees) (No. 2) Order 2013 (S.I. No. 466 of 2013), reg. 10, in effect as per art. 1(2).