Fine Gael Spokesperson on Innovation & Research Deirdre Clune TD has welcomed the recommendations for reform contained in the Law Reform Commission’s Personal Debt Management and Debt Enforcement Report.

Deputy Clune has urged the Government to respond to the report by reforming our outdated insolvency laws without any further delay.

I agree with the Law Reform Commission’s (LRC) criticism of the Bankruptcy Act 1988 as being unable to provide an effective system of personal insolvency law capable of serving the needs of the credit society. Our insolvency laws are outdated, they belong to a different age and the current economic crisis has exposed just how ineffective they are when they are most needed.

The LRC Report set out to overhaul the current system by recommending reforms such as the introduction of a Debt Settlement Arrangement procedure, the establishment of a Debt Relief Order Procedure, reform of key aspects of the Bankruptcy Act 1988 and reform of the law on the enforcement of judgment debts.

The Minister for Justice now has an opportunity to respond to these recommendations and introduce the long overdue reform in this area that has been repeatedly called for by Fine Gael.