Blog – David McCarthy on Galway Talks – 25/04/2013

Issue: Personal Insolvency Bill

Comment:  I must say I have great problems with the details of this bill.  In particular I am referring to the Minimum Expenses Guidelines which were announced.  At the launch the head of the Insolvency Service stated that it is unlikely that people would be allowed to retain 2nd cars, go on holidays or even maintain medical insurance.

The figures included in the Minimum Guideline, would appear to be extremely unrealistic in my opinion.  I am particularly concerned that banks will insist, in the negotiation process with a client, on applying the minimum expenditure guideline and use it as a pressure point on clients.  In other words, they may turn around and say that this is the sum they are allowing you for your day to day expenses and that they want the balance.

At all costs I would advise borrowers experiencing difficulties, to negotiate a voluntary arrangement with their bank and only enter into the insolvency process if it is absolutely the last resort for them.

Issue:  Local Property Tax confusion continues

Comment: Confusion over house valuations for the property tax has continued unabated.  This is only to be expected, when you devise a valuation system that is as seriously flawed as this one.  I discussed this in detail with Keith on this morning’s show, along with a variety of other issues relating to the tax and rather than repeat myself here I would suggest that you listen to my podcast