Insolvency Bill may have 'unintended consequences'

JUST as most of us assumed that the new Personal Insolvency Bill was a good thing, along comes Paul Whelan, chairman of the IPFMA (Irish Property and Facility Management Association), warning that it may have unintended consequences for apartment owners – especially those on the boards of Owner Management Companies (OMCs).

The problem of apartment owners being in arrears with their service charges is a serious one – some have never paid them. If such an owner becomes insolvent, the OMC may have no way of ever retrieving the money owed. This could bring some OMCs to breaking point, resulting in a development falling into disrepair, with risk to insurance and maintenance, Whelan warned.

Speaking at the IPFMA annual lunch last week, he called for reform of the legal system on the recovery of service charges saying that changes were needed “to sustain apartment living in Ireland and ensure that OMCs remain solvent”.