An article in The Irish Times described how the personal debt system in Ireland is in need of ‘urgent reform’ to ‘drag it into the 21st century’.

The article looks at whether something similar to an IVA (Individual Voluntary Arrangement) could be brought in as a short-term solution to ‘bridge the gap’ while the personal debt system is reviewed.

At present, the only insolvency option for indebted borrowers is the ‘little-used’ Bankruptcy Act – so it comes as no surprise to hear that there were just eight bankruptcies in Ireland in 2008, while the UK saw over 100,000 insolvencies (made up of bankruptcies/sequestrations, IVAs and Trust Deeds).