Bankruptcy Bill Passes Both Houses Of The Oireachtas
The Bankruptcy (Amendment) Bill 2015 has successfully passed through both Houses of the Oireachtas.
The Bankruptcy Bill provides for:
- a reduction in the normal duration of bankruptcy, from 3 years to 1 year
- a reduction in the normal maximum duration of orders requiring payments to creditors from any income of the bankrupt person, from 5 years to 3 years
- an extended bankruptcy term -up to 15 years in serious cases
- extended duration of payments to creditors, if the bankrupt person tries to hide income or assets, or does not co-operate with the bankruptcy process
- a bankrupt person will regain their ownership of their home, subject to any mortgage, after 3 years
- some key reforms to modernise and streamline bankruptcy procedures, and remove unnecessary delays and costs to the parties and the taxpayer
Minister for Justice and Equality, Frances Fitzgerald T.D. outlines that the Bill represents a significant reform of the bankruptcy laws in Ireland. The new regime will ease the impact of those who previously never went to go bankrupt and will give them a chance to retun to economic activity.
The Bill also contains provisions that penalises those who try to abuse the bankruptcy process or to cheat their creditors. The Minister also stated that another benefit to the Bankruptcy Bill is the fact that it will ensure "fair and realistic outcomes both for debtors and for creditors."