Relief for an insolvent borrower from indebtedness is determined ultimately through the insolvency procedures for which legislation has so recently been reformed and in a direction which is rightly much more favourable to the insolvent debtor than was previous legislation. The Central Bank helped to advise on the drafting of this legislation and has been supportive of its aims.
Use of this legislation will be an important means of ensuring that over-indebtedness problems, especially those involving multiple debtors, can be resolved. But it should be possible for lenders to avoid imposing the costs and delays of a personal insolvency arrangement (PIA) or bankruptcy on many insolvent debtors, by coming to sustainable negotiated solutions which are better for both borrower and lender.