A large number of people in serious financial difficulty likely waited for changes to the country’s bankruptcy laws so as to take advantage of the newly introduced shorter term, according to a bankruptcy specialist.
Chapter 7, 11 and 13 Bankruptcies are among the most common forms of bankruptcies under the US Federal Bankruptcy code. There are similar provisions in Irish law but different terminology is used in describing the Irish equivalent.
With the changes to the bankruptcy legislation, the number of applications for bankruptcy in Ireland is expected to double on the figures for last year.
The Bankruptcy (Amendment) Bill 2015 has successfully passed through both Houses of the Oireachtas.
The Attorney General, Máire Whelan SC has been asked to draft a Bankruptcy Bill after an agreement was made by the Cabinet to reduce the bankruptcy term in Ireland top just one year.
The Government looks set to sign off on the plan to cut the bankruptcy term from three years to one year. Those who have called for the change have comprehensively won the debate. Questions have been asked if this is the right thing to do?
The Government’s recent decision to reduce the term of bankruptcy from three years to one year has been heralded as “possibly the most important of its term in office”.