BIS central bankers’ speeches  1  The new Personal Insolvency Act offers new avenues of recourse for insolvent persons, including, importantly, the Personal Insolvency Arrangement (PIA) which could allow insolvent mortgage debtors to earn a “fresh start” through being subject to an onerous payment plan, but without necessarily having to surrender an owner-occupied home.
This avenue, as well as a streamlined bankruptcy procedure (in which the debtor’s property would be seized by creditors), means that banks will have to act more pro-actively and liberally in respect of those who cannot realistically pay, if they are to avoid the costs and inefficiencies of having to respond to PIA proposals or bankruptcy cases.