The Government has launched the new personal insolvency service, which will see new arrangements for overburdened borrowers to reach agreement with their creditors.
Details of reasonable expenditure guidelines have also been published by the Insolvency Service of Ireland.
The guidelines include indicators of the amount families will be allowed to live on once they enter into State-approved personal insolvency deals.
The director of the new service Lorcan O'Connor said the guidelines would "safeguard a minimum standard of living".
He added: "These guidelines are not to force people out of their jobs. It is to give them a second chance."
There had been recent concerns that the guidelines would force individuals to give up childcare.
However, the examples of people in insolvency arrangements given by the service show borrowers are allowed to continue to keep children in childcare.
Personal insolvency practitioners will be licensed in the coming weeks, who will negotiate deals between lenders and borrowers.
New applications for insolvency will be accepted by the end of June this year.
A website and phone number, 076-1064200, for debtors has also become operational.
Minister for Justice Alan Shatter and Mr O'Connor announced details of three different debt solutions available to those struggling with personal debt.
The different debt solutions will depend on the amount of debt involved, individual circumstances, whether there is a mortgage, and whether the debt is secured or unsecured.
The Debt Relief Notice (DRN) is for debts up to €20,000; the Debt Settlement Arrangement (DSA) is for unsecured debts of no limit; and the Personal Insolvency Arrangement (PIA) is for unsecured and secured debt.
Mr Shatter said: ''The three new debt solutions available provide certainty for those crippled with unsustainable debt and will help restore people who are insolvent to solvency in a fair, transparent and equitable way.''
Mr O'Connor said: "Our objective is to help restore people who are insolvent to solvency in a fair, transparent and equitable way."
He said the reasonable expenditure guidelines were not designed for the micro-management of people's expenditure or lifestyle by either the Insolvency Service or by creditors.
"A reasonable standard of living does not mean that a person should live at a luxury level", Mr O'Connor said.
"But nor does it mean that people should be punished and live only at a subsistence level."
He said the guidelines are meant to be flexible and that they are a baseline for negotiations and discussions.
He added: "Our objective is to help people in genuine distress, and to allow them their dignity as they work their way out from under their financial burdens."
Mr O'Connor urged insolvent debtors intending to apply for insolvency arrangements to continue to work with their creditors.
He also urged creditors to address any operational challenges they may face in implementing the new solutions.
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