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IVAs in Ireland - report due in September

It looks like the Irish Government`s introduction of IVAs is moving ahead. As sbpost.ie (the Sunday Business Post) tells us, we`ll hear more in September when a report comes out.

The Government group which was set up to look at ways of dealing with personal debt is considering the introduction of IVAs `as a less restrictive alternative to existing bankruptcy laws`.

They`ve been looking at the way IVAs work in Britain (excluding Scotland, where borrowers with problem debts may be able to enter a Trust Deed, rather than an IVA). The group`s final report is due to be published in September.

Minister for Communications, Energy and Natural Resources, Eamon Ryan, said that IVAs could mean the banks would be "taking a hit on the debt, but getting the benefit that they have a productive customer again".

The banks, he said, "would get the certainty of a working arrangement with their customers, who can then get back on their feet and start trading again."

Today, IVAs are available to help struggling borrowers in England, Wales and Northern Ireland - but not the Republic of Ireland.

The latest figures from the Insolvency Service show that 722 people in Northern Ireland entered an IVA last year - while in England and Wales, 47,641 people entered an IVA.