Bankruptcy law change to be presented to Cabinet on Tuesday

Legislation that would bring Irish bankruptcy law in line with Northern Ireland will be presented to the Cabinet next week, the Irish Examiner reports.

Justice Minister Frances Fitzgerald will seek Cabinet approval for the legislation at a meeting on Tuesday 1 December with a view to its enactment before the end of the current Dáil session.

The rule change would reduce Irish bankruptcy terms from three years to one year, which is the same as in Northern Ireland and the rest of the UK.

Taoiseach Enda Kenny has voiced his support for passing the proposed legislation before the general election.

Willie Penrose TD, a long-standing campaigner for the change, added: “It has been nine months in gestation and finally it is going through. It will bring a great deal of relief to people. I am still getting lorry loads of letters on this.

“We hear a lot of talk of this being a great place to do business. I am very pleased it is now happening. It will empower the distressed borrower to get back going again. Bankruptcy will have lost its stigma.

“This will force banks to wake up to reality, this will level the playing field. This will be a real benefit to the plain people of Ireland.”