A borrower has been today disccharged early from from bankruptcy after 12 months following an application to the High Court. This is the first time under the three year term for bankruptcy regime in which an individual has been discharged early.
Taoiseach Enda Kenny has said that Legislation to reduce the bankruptcy term from three years to one year will be in place by the end of this year. Mr Kenny told the Dáil that the Government has accepted the need to reduce the term from three years to one year.
Struggling homeowners will soon be able take advantage of one of the 27 special Money Advice and Budgeting Service (MABS) outlets nationwide and will also be able to consult with court “mentors” during hearings. The Department of Social Protection is increasing the ability of MABS to assist distressed mortgage holders through a number of different measures including a greater role in offering information and advice through all stages of the mortgage arrears resolution process (MARP).
The Oireachtas justice committee has recommended that the bankruptcy term should be cut from three years to one year. The move puts pressure on the Coalition to act on the issue as its previous move to reduce it to three years from 12 years was widely criticised as not going far enough. The justice committee also left open the option for some bankruptcies to be extended to three years.
We have compiled a useful list of resources and a glossary on bankruptcy and insolvency.
These are the top 5 questions asked by clients when considering Bankruptcy:
Myth 1: “Bankruptcy can’t save your home from repossession…”
You may not necessarily lose your family home in bankruptcy. You may be able to agree a schedule of mortgage payments with your bank and the Official Assignee, where such payments are within the Reasonable Living Expenses approved by him.