In a society where credit has become the main driver of consumer spending, there has been an unacceptable failure by government to change the law to reflect that change in society.
Following two years of reflection, and a consultation paper in 2009, the Law Reform Commission has now published final recommendations to government for a comprehensive personal debt settlement process which includes: non-judicial debt settlement arrangements, debt relief orders, a revision of the judicial bankruptcy legislation, a complete overhaul of existing debt enforcement mechanisms together with a Debt Enforcement Office to oversee a revised system of enforcement and to supervise debt settlement arrangements - all of these provide a blueprint for how debt recovery will be dealt with in the future.
Paul Joyce, FLAC's Senior Policy Researcher, who spoke at the Law Reform Commission's conference on 16 December 2010 emphasises that:
"The future of debt enforcement should mean that legal proceedings occur as seldom as possible. It is the State's obligation to ensure that there is a proper money and indeed legal advice infrastructure to enable early resolution of debt cases to take place. Furthermore, the existence of private 'for profit' debt-settlement companies is an area which needs to be properly regulated and monitored, otherwise there is a significant danger that already vulnerable clients, desperate for solutions to their financial problems will grasp at expensive straws."
A stigma still lingers in Ireland for many in relation to over-indebtedness despite our recent exposure to financial crises according to FLAC.
These proposals from the Law Reform Commission, if implemented, will take the debt process out of the glare of the public courts and into a more dignified private setting.
Please click here to view Paul Joyce's speech, "The Future of Debt Enforcement in Ireland", from the Law Reform Commission conference on 16 December 2010.
Please click here to view the Law Reform Commission report.