Legal experts urged to speed up personal debt reforms
Law experts have been asked to fast-track a special reform package on personal debt to keep mortgage defaulters out of court, it emerged today.
Justice Minister Dermot Ahern appealed to the Law Reform Commission to identify up to five key changes from 122 proposals to tackle the spiralling problem.
The aim is to avoid bitter court battles and prison for people falling on financial hard times.
“Let me be clear – this system needs to become more humane, more efficient and more effective in this area,” the minister said.
Mr Ahern has already moved to lift the threat of jail for people who cannot afford court fines and insisted no-one should be imprisoned over debt.
The scale of the debt problem has been highlighted by 864 new repossession applications for residential and commercial properties lodged in the courts so far this year.
The same period last year saw 278.
“People are suffering real difficulties in making various repayments and they need the system to hear them,” the minister said.
“The system of collection and enforcement of debt requires us to acknowledge, where possible, the exceptional circumstances that exist at this time.”
The Law Reform Commission said it is aiming to complete its work as quickly as possible with a view tio handing it over to the minister next summer.
Mr Ahern is introducing new laws which allow fine defaulters to complete community service for failing to pay a court bill.
“No-one will go to prison because he or she cannot afford to pay a fine,” the minister said.
“Only those who can afford to pay but simply refuse to do so will have to fear the last resort of possible imprisonment.”
The Department of Justice claimed less than 10 people were in jail for failing to pay fines or personal debt.
