Tuesday 23 May 2017

Bankrupty terms slashed by seven years in sweeping new bill

Independent.ie reporters

The Government is introducing sweeping new rules that would reduce the terms of bankruptcy for individuals from 12 years to five.

The current rules make it difficult for entrepreneurs to set up new businesses because of lengthy of the term.



Since the onset of the recession, some businessmen have moved to the UK to take advantage of shorter redundancy terms.



Minster for Justice Alan Shatter has published a bill that also provides for an automatic end to bankruptcy after 12 years - a move that will affect up to 300 people.



The decision to reduce the bankruptcy term comes ahead of new legislation, expected next year, that will overhaul the personal insolvency regime in Ireland.



Today's changes to the bankruptcy law were inserted into the Civil Law Miscellaneous Provisions Bill, which introduces a raft of changes to various aspects of civil law.



Changing the insolvency regime is part of the EU/IMF €67.5bn loan bailout for Ireland.

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