A Debt Relief Notice (DRN) is one of three new measures contained in the Personal Insolvency Bill 2012 which was published by the Irish Government in 2012.
A Debt Relief Notice will allow for the write off of qualifying debt up to €20,000, subject to a three years supervision period, for insolvent persons who have 'no income - no assets' and who have no prospects of being able to pay off their debts in the next five years. Applications for a Debt Relief Notice have to be submitted by an authorized intermediary body on behalf of the debtor to a new Insolvency Service.
The disposable income limit is €60 per month after reasonable living expenses are paid and the assets limit is €400 excluding one motor vehicle with a value of no more than €1,200 and also excluding essential household appliances and tools required for employment or business. Excluded debts include taxes, court fines, family maintenance payments and service charge arrears.
Only one Debt Relief Notice is allowed in a lifetime and it is not allowed within five years of completing a Debt Settlement Arrangement or a Personal Insolvency Arrangement, the other two new personal insolvency measures being introduced in the bill.
The debtor must not apply for credit of more than €650 within the three years term, without informing the person providing the credit of the Debt Relief Notice.
Should the debtor’s income increase by more than €250 per month or if he or she receives gifts or windfalls of more than €500 during the three years term of the Debt Relief Notice, the debtor may be required to make payments to creditors via the Insolvency Service. At the end of the three years term, the Debt Relief Notice terminates, all qualifying debts are discharged and the debtor’s name is removed from the Register of Debt Relief Notices which is to be established and maintained by the Insolvency Service.
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