Debt Advisory Centre Ireland says it welcomes the proposed changes to bankruptcy legislation set out in the recent Civil Law (Miscellaneous Provisions) Bill, which could mean bankrupts are able to apply for discharge after five years and will be automatically discharged after 12 years.
The company said that the softening of existing bankruptcy laws would be good news for both those already going through bankruptcy and those considering bankruptcy as a solution to their debt problems.
Currently, bankrupts in Ireland can apply for discharge after 12 years, but many bankruptcies last longer than this because there is currently no legal time limit or guarantee of discharge. The changes would mean all bankrupts are discharged after 12 years, but some could be discharged after five years provided they meet certain conditions.
A spokesperson for the center said that “Bankruptcy laws in Ireland are currently a lot more severe than they are in the UK, and the implications of becoming bankrupt can last for an indefinite period – which is often a deterrent for people who are very much in need of an appropriate insolvency solution. Hopefully, these changes will help make bankruptcy a less daunting prospect and encourage more people to get the help they need.”