Irish homeowners applying for debt writedowns will have to give up satellite television, foreign holidays and private school educations for their children under a strict new insolvency law introduced to tackle the country’s debt crisis.
Ireland’s Insolvency Service yesterday set out monthly spending limits for people seeking debt deals from creditors, emphasising the impact austerity is having on Irish spending habits. A single person will be allowed only €247.04 a month for food, €57.31 for heating and €125.97 for “social inclusion and participation” – a category of expenses that includes tickets for sporting events and the cinema.
“A reasonable standard of living does not mean a person should live at luxury level,” said Lorcan O’Connor, director of the newly established Insolvency Service of Ireland. “But nor does it mean that people should be punished and live only at subsistence level.”