'Diamond Bazooka' Rings Topple Insolvency Amendment

An amendment to the new personal insolvency legislation, which sought to allow debtors to keep "one item of jewellery of ceremonial significance", has been withdrawn as there was no stipulation of an upper limit on value.

Justice Minister Alan Shatter said he could not accept the amendment because it could include expensive items. He said he would "need convincing" that high-value items should be kept when someone is applying for bankruptcy.

Adding: "If someone has a modest wedding ring or engagement ring valued at a couple of hundred euros, no one wants that individual to be put in a position where they may be deprived of that."

He said some "lucky recipients" of expensive engagement rings had paraded their jewels to newspapers during the economic boom, and added: "Some of these people have left this country because of the debts they have left behind them.

"One individual's €100 ring that has ceremonial significance might be another individual's €200,000 or €300,000 diamond bazooka that they regard as having a great deal more ceremony than the €100 ring.

"They're looking for a debt relief notice but they want to hold on to the ring worth €300,000 or €400,000. Now let's get real about what we're talking about here."

The proposed personal insolvency legislation would allow those with serious debt troubles to write-off of up to €20,000, providing they can prove their assets are under €400 in value.

However, the assets would exclude household appliances, tools, a car valued at €1,200 or less and other essential items.

Limerick TD Niall Collins, who proposed the amendment, withdrew it yesterday because it placed no ceiling on the value of the jewellery, but said he may return to the matter.

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