Let Them Eat Cake!

In relation to the controversial government legislation covering personal bankruptcy (the Personal Insolvency Act 2012), the transcript of the following radio interview by RTÉ journalist Mary Wilson with Jim Stafford, a Personal Insolvency Practitioner or PIP, is astonishing (via CLR):

“Mary Wilson reads an email sent by a listener asking: What happens to my home if I enter into a PIA?

Jim Stafford [JS]: Well, under the legislation the PIP is to try and keep the family in their family home if at all possible. The PIP will have to assess the existing mortgage on the family home, if it’s a modest house, if it’s a trophy house.

In practice, the PIP will also have to assess the type of house that might be needed for a professional person such as a solicitor, accountant or a hospital consultant as opposed to a house that’s needed by someone who is in the PAYE sector for example, so that, as a PIP, I would be making a very strong case, for example, that a solicitor should have a bigger house that accords with his professional status in society so that his neighbours and clients can see that, yes, this person is a good solicitor who’s is living in a good house etc. etc.

Mary Wilson [MW]: Really?

JS: Absolutely. The same as for hospital consultants, people like that.

MW: Despite the fact that he’s insolvent?

JS: Despite the fact that he’s insolvent, because remember, if we want the solicitor to continue to earn money or the accountant or the hospital consultant it’s important that he has his tools of trade for example.

MW: Well, he may need an office, but he hardly needs a palatial house in South County Dublin.

JS: Believe me, the clients who we have on our books are insisting they continue to stay in their palatial houses, now, it’s possible that some of them might have to down trade, but that all goes into the pot and at the end of the day the banks, the creditors have to agree to that process.”