Public Debt Solution Registers

4th March 2014

In countries where personal insolvency debt solutions exist it’s common for public registers to be compiled of those that use them. Various reasons for this are given. Two important examples include providing a tool to lenders to avoid lending to someone who cannot repay because they’re insolvent, and to maintain a degree of transparency about the whole debt solution process.

The two relevant registers in this instance are the Register of Protective Certificates and the Register of Debt Settlement Arrangements. Both are maintained by the Insolvency Service of Ireland (ISI).

A “protective certificate” will be applied for at the start of the process of trying to arrange for a DSA to be set-up. It provides you with protection from your creditors for a period of 70 days. This provides your personal insolvency practitioner with the opportunity to negotiate with your creditors while you’re free of any immediate threat.

The Register of Protective Certificates will include your name, your address and the dates relevant to your application. It will also include some legal detail.

The Register of Debt Settlement Arrangements will contain details relevant to the set-up and conduct of your DSA. For example it will list the date that the arrangement is formally agreed, details of substantial changes during the course of the arrangement and the completion date once it has come to an end.  

While few people would welcome being added to a public register of debt solutions, for most people this will not present any significant challenges in reality. It’s incredibly unlikely that anyone will stumble upon your details. To ascertain that you’ve entered into a debt settlement arrangement a searcher would need to have looked for that data about you specifically. Most people aren’t in jobs that would be jeopardised by personal insolvency. Most people don’t have specific personal security concerns that would be relevant.

At the current time the Insolvency Service of Ireland does not have any discretion to leave you off one of these registers. If you apply for a protective certificate and then a DSA you will be listed on the relevant registers.

This may be of concern to some people. Personal security concerns have been cited by certain professional groups including gardai, prison and defence force staff. In other jurisdictions similar concerns have arisen where victims of domestic violence fear being located as a result of their address being listed in this way.

It’s quite possible that the lack of ISI discretion on this matter will change in the future. Challenged on the subject recently they have revealed that they’ll consider requesting a change to the law if it’s apparent that the current position is leading to genuine problems and justified security fears.

At the current time however to go ahead with a DSA you will need to be prepared to have your details listed on the Registers of Protective Certificates and Debt Settlement Arrangements. If this situation changes in the future we will provide a further update.