Debtors have no legal standing to appeal Personal Insolvency Arrangements under s. 115 A of the Personal Insolvency Acts, 2012-2015.
The Personal Insolvency Act 2012, as amended, introduced new powers to the courts, to enforce and impose Personal Insolvency Arrangements that are deemed to be fair and reasonable on all parties, granting the court the power to overturn secured creditor’s decision to reject Personal Insolvency Arrangements. There has been much debate in respect to whether the Debtor and/or the Personal Insolvency Practitioner has legal standing to bring an application to appeal the decision of the creditors’ to reject Personal Insolvency Arrangements.
Judge Susan Ryan recently ruled in favour of KBC, in accordance with section 115 A of the Acts, that the Debtor does not have standing to make the application. The Personal Insolvency Practitioner may, where he or she considers that there are reasonable grounds for the making of such an application and if the debtor so instructs him or her in writing, make an application on behalf of the debtor to the appropriate court.
In her judgment, Judge Ryan stated that section 115 A was interpreted in its plain and ordinary meaning and it was clear on its face. Judge Ryan did not agree with opposing counsel’s view that a very clear constitutional issue arose, as the Debtor did not have legal standing in this case.
Due to the fact that the decision will more than likely be appealed, Judge Ryan has adjourned several cases in the Circuit Court Personal Insolvency list. This decision is set to affect hundreds of cases.
If you are a Creditor seeking advice in relation to any of the above mentioned matters, please contact Donnacha O’Donovan in our Dublin offices on 01 678 5199.