Attorney General speaks on Insolvency Bill

On September 16, 2024, Prime Minister Hon. Philip J. Pierre tabled the Insolvency Bill in Parliament. The proposed legislation provides a legal framework for individuals facing financial difficulties to renegotiate their debt obligations with creditors through structured proposals. This bill aims to strike a balance between the interests of debtors and creditors while addressing the issue of non-performing loans within financial institutions. One of the most notable features of the bill is the protection it offers to primary residences. It exempts a certain portion of a debtor's equity in their main home from creditors, ensuring that families can retain their homes while managing their debts. This bill provides significant benefits to consumers, including: Debt Forgiveness: Enabling borrowers to negotiate partial or complete debt forgiveness. Affordable Restructuring: Establishing a low-cost, out-of-court process for debt restructuring, allowing borrowers and creditors to reach mutually beneficial agreements. Creditor Intervention: Empowering borrowers to halt creditor actions against them. Asset Protection: Allowing borrowers to pause the sale of their assets while they work to resolve their debts. Find out more: https://www.govt.lc/news/insolvency-act-empowers-debtors-to-negotiate-with-creditors