Civil Liability (Amendment) Act 2017

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Amendment of Bankruptcy Act 1988

4. The Bankruptcy Act 1988 is amended—

(a) in section 3, by the insertion of the following definitions:

“ ‘Act of 2010’ means the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ;

‘periodic payments order’ has the same meaning as it has in Part IVB of the Civil Liability Act 1961 ;”,

(b) in section 44—

(i) in subsection (3)—

(I) in paragraph (b), by the substitution of “by those sections; and” for “by those sections.”, and

(II) by the insertion of the following paragraph after paragraph (b):

“(c) any sum paid to the bankrupt under a periodic payments order, which relates to damages in respect of future loss of earnings.”,

(ii) in subsection (4)—

(I) in paragraph (a), by the deletion of “or”,

(II) in paragraph (b), by the substitution of “ Central Bank Act 1971 , and” for “ Central Bank Act, 1971 .”, and

(III) by the insertion of the following paragraph after paragraph (b):

“(c) any sum paid to the bankrupt under a periodic payments order, other than a sum referred to in subsection (3)(c).”,

and

(iii) by the insertion of the following subsection after subsection (5):

“(6) Subsection (5) shall not apply to any sum paid to a bankrupt under a periodic payments order before the discharge or annulment of the adjudication order, other than any part of such sum which relates to damages in respect of future loss of earnings.”,

(c) in section 45—

(i) by the substitution of the following for subsection (1):

“(1) (a) Subject to paragraph (b), a bankrupt shall be entitled to retain as excepted articles—

(i) any assistive technology or other aids and appliances associated with the medical treatment and care of the bankrupt, his or her spouse or civil partner within the meaning of the Act of 2010, his or her children and any dependent relative residing with him or her, and

(ii) such articles of clothing, household furniture, bedding, tools or equipment of the bankrupt’s trade or occupation or other like necessaries for the bankrupt, his or her spouse or civil partner within the meaning of the Act of 2010, his or her children and any dependent relatives residing with him or her, as the bankrupt may select.

(b) The total value of articles selected by a bankrupt under paragraph (a)(ii) shall not exceed €6,000 or such further amount as the Court may, on an application by the bankrupt, allow.”,

and

(ii) in subsection (2), by the substitution of “subsection (1)(a)(ii)” for “subsection (1)”,

(d) in section 47—

(i) by the substitution of “Subject to subsection (2), notwithstanding” for “Notwithstanding”,

(ii) by the designation of that section as subsection (1), and

(iii) by the addition of the following subsection:

“(2) Money or securities referred to in subsection (1), which derive from—

(a) payments to a bankrupt, before or after adjudication, made under a periodic payments order, other than any part of such payments which relates to damages in respect of future loss of earnings, or

(b) damages or compensation otherwise paid to a bankrupt, before or after adjudication, for a personal injury or loss suffered by him or her, other than any part of such damages or compensation which relates to damages in respect of future loss of earnings,

shall not vest in the Official Assignee.”,

and

(e) in section 85D, by the insertion of the following subsection after subsection (7):

“(8) A payment which a bankrupt receives, or is entitled to receive, under a periodic payments order, other than any part of such payment that relates to damages in respect of future loss of earnings, shall not be regarded as income or an asset for the purposes of this section.”.