Personal and mortgage debt – ‘Settlement not forgiveness’

A statement by Irish organisations and researchers working for those in debt.
"This document sets out some broad principles and outlines an approach which we believe should form the basis of a much more fundamental policy response to this problem, a response that must be just, fair and equitable."

A summary of principles to address the debt crisis:

• Over-indebtedness – It is inability to pay rather than a lack of willingness to do so that is at the heart of the personal debt crisis. Over-indebtedness is a deep social and economic problem that requires a multi-dimensional strategic response from government.
  
  
• The need for data - Comprehensive information is urgently needed to quantify the extent of the debt problem. Policy initiatives undertaken must be constantly evaluated in light of such data.
   
• Multiple debt - Proposed solutions must take all debt liabilities into account to be effective and workable.
   
• Personal insolvency legislation - There is an immediate need for the introduction of personal insolvency legislation. A Debt Resolution Agency should be established to oversee the legislative scheme to ensure transparency and consistency.
   
  
• Debt write-off - Insolvent debtors should pay to the best of their ability for a limited time period and remaining debt should then be written off.
  
  
• Access to representation - Debtors must be entitled to have an advocate represent their interests in negotiations to agree or processes to contest debt repayments.
   
• Minimum income - Debtors must be entitled to a minimum income to meet their basic needs while repaying debts.
  
  
• Unsustainable mortgages - The fact that some mortgages are unsustainable must be recognised and where repossession results, appropriate social housing and social welfare rights must be provided to such households.
   
  
• Retention of dwelling - State supports should aim to keep people in their homes where possible, whether in an ongoing mortgage or as a tenant where appropriate.

Full version is avalaible in Download section (debt regulation):

http://www.asb-gmbh.at/ecdn//index.php?option=com_docman&task=doc_download&gid=413&Itemid=27