New bankruptcy laws to come into effect today
JUSTICE Minister Alan Shatter is expected to sign the commencement order on a new bankruptcy law today.
The new legislation, under the Personal Insolvency Act, means people will be discharged of bankruptcy after three years instead of the current 12.
The Personal Insolvency Act also paved the way for the creation of personal insolvency arrangements (PIAs) for those with mortgages and other debts.
A PIA is court-backed deal, approved by the Insolvency Service. A PIA will last between five and seven years, and will lead to some debts written off at the end of the agreement.
Also set to be introduced today are debt settlement arrangements (DSA), which are for debts that do not include mortgage borrowings, and debt relief notices.