New bankruptcy laws: Five key changes
New bankruptcy laws that come into effect today are designed to enable people with crippling debts to deal with them more easily, writes Ailish O’Hora
Here are five key changes being proposed as part of the legislation being introduced by Justice Minister Alan Shatter.
1 Timeframe: The bankruptcy discharge term has been cut from 12 years to three years.
2 Cost: The fees to be paid to state officials and the stamp duty for entering bankruptcy will be the same but the overall cost will be cut from €1,450 to €750. Those affected will be able to hold onto assets up to value of €6,000 as a result of the changes.
3 Structure: The change is retrospective meaning that business people already declared bankrupt will be able to benefit from the shorter discharge period.
4 Numbers: Up to 5,000 people are expected to declare themselves bankrupt next year following the changes.
5: Conditions: It will no longer be necessary that details of the bankruptcy be published in a national newspaper, for example.