Critics Speak Out Over Plans To Cut Bankruptcy Term In Ireland
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?
When it comes to dealing with legislation the is no correct answer when dealing with legislation that aims to strike a balance between debtors and their creditors.
Not only do the large banks have reservations about whether the new legislation will work, a credit union in Lisduggan in Co Waterford, "warned that it would give people too easy a route to walk away from their debts which, as its submission said, in the case of credit union loans were drawn from the savings of other members".
Chris Lehane, the official assignee, who is the court-appointed official who oversees the property and assets of bankrupt people has remained one of the strongest objector to the new regime. He has argued that one year is too short a term and may spark an inward flood of “bankruptcy tourism.”
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