Bankruptcy term will be reduced to one year
The number of years during which a person is considered bankrupt is to be cut from three to one by the end of the Dáil term.
Taoiseach Enda Kenny has indicated that the Department of Justice will bring legislation on the issue to the Cabinet in the coming weeks.
The move will be seen as a major victory for the Labour Party and in particular Westmeath TD Willie Penrose, who has campaigned for the change.
His proposals were originally opposed by the Department of Finance but Mr Kenny told the Dáil yesterday that Justice Minister Frances Fitzgerald was finalising her analysis of a report on the topic that was compiled by the Oireachtas Joint Committee on Justice, Defence and Equality.
Mr Kenny said that he wanted the minister to come back to Cabinet "in the next couple of weeks with her considered views arising from the report".
He told the Opposition that priority would be given to its passage through the Oireachtas and his "intention" would be that it can happen in the current Dáil session.
Reducing the bankruptcy term to one year would bring Irish law in line with the UK.
Mr Penrose's Westmeath constituency is the only one where the Labour Party has yet to hold a convention. Confirmation that the former minister for housing has won his long-running battle to the change the law would be seen as a boost to his re-election campaign.
However, the Irish Independent understands that it will be at least December before he finally decides whether to contest the election or not.