The delayed personal insolvency service expected this autumn will not be operational until next January at the earliest, the Government has admitted in documents submitted to the IMF and EU authorities.

Letters and memos from Minister for Finance Michael Noonan and Central Bank governor Patrick Honohan published yesterday highlighted outstanding issues which have held back the proposed legislation.

The issues include the licensing and supervision of personal insolvency practitioners, and the evolution of “reasonable” household expenses and business expenses guidelines for debtors. The guidelines are expected to be compiled by the end of the year.

The admission was contained in papers sent to IMF managing director Christine Lagarde, European Central Bank president Mario Draghi and other senior figures on Monday.

An updated EU-IMF programme document was published on the Department of Finance website yesterday following the completion of the seventh review of the programme last month.

The Government expects to appoint a director to oversee the establishment of the insolvency service soon. Minister for Public Expenditure and Reform Brendan Howlin has granted an exception to the public service moratorium on recruitment and promotion to allow for an open, public competition to fill the position.

By the end of the third quarter of this year, the Government has committed to ensuring that a programme to facilitate access by distressed borrowers to professional financial advisory services, funded by banks, will be operational.

The Personal Insolvency Bill 2012 completed second stage in the Dáil last month and committee stage will begin next month. The proposed legislation would cut the bankruptcy period from 12 to three years, while also introducing three voluntary debt-settlement systems outside of formal court insolvency.