The bankruptcy term in Ireland is set to be reduced to just 1 year in Ireland. The current term is 3 years which has been reduced from 15 years previous. The shortened term is a welcome adjustment to the laws surrounding insolvency and bankruptcy and bring the laws into line with the equivalent laws in Northern Ireland and the United Kingdom.
Good move for the SME sector
The move would mean that those burdened by debt can remove their bad debt and return to economic activity in the following year after declaring bankruptcy. This is a favorable move for the SME sector in Ireland which is a sector that sees a high rate of debt. The new law would mean that a business owner can apply for bankruptcy and return to business after the one year period.
More leeway for non-compliant bankrupts
For those who do not comply with the laws, hide income or assets, an extended period of 15 years may be handed down to those bankrupts.
How law affects assets
In terms for assets, a bankrupt person will regain ownership of their home after 3 years subject to any mortgage had steps been taken to sell it for the benefit of creditors within that period. This is a good move to help home owners who have unsustainable mortgages.
The new laws will also help to streamline the bankruptcy procedures in order to prevent delays and make the process of declaring bankruptcy quicker.