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The Irish government's proposals to tackle consumer debt will involve three distinct voluntary debt settlement arrangements and a three year bankruptcy regime, RTÉ News reports.

The three non-judicial proposals are part of a broader range of reforms to aid struggling borrowers.

The first measure will be a one year Debt Relief Certificate, which will cover unsecured borrowings of up to  €20,000.  This would have to be approved by an insolvency service and an independent intermediary.
 
The second measure will be a Debt Settlement Arrangement lasting for five and in some cases six years.
 
It would cover unsecured borrowing of over  €20,000. Secured debts would be excluded. _____________

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The third measure would be a Personal Insolvency Arrangement which would cover secured and unsecured debts of over €20,000.

This would last for six and sometimes seven years. This alternative would include mortgages.
 
The three options would all require agreement from banks and borrowers. They would require consumers to volunteer for the measures and would not involve the courts.
 
The final option is bankruptcy, which would involve a three year discharge period.
 
People would be able to avail of this under certain conditions and it would involve a legal process, unlike the other options.
 
It is understood the heads of a bill will be discussed at Cabinet this and progress is expected, but ministers are unlikely to make a final decision this week.