BANKRUPTCY IN IRELAND is set to be reduced from 12 years to three as new legislation is signed by justice minister Alan Shatter today.
The legislation is the final part of the new insolvency rules to be enacted by the Government and follows the first debt deal under the new regime being completed last week.
Bankruptcy is generally a more severe avenue for those in debt to engage in and Ireland in particular was seen as having particularly punitive rules.
The reduction in term of bankruptcy is seen as a way of reducing “bankruptcy tourism” which has seen individuals travelling to the UK to decalre bankruptcy where the term is usually one year.
On his way into Government Buildings this morning, Minister for Public Expenditure and Reform Brendan Howlin said that the signing of the new bankrutpcy rules represent an “important last piece of the jigsaw to bring the suite of insolvency measures into force.”
“For some this last step, which will be the issue of bankruptcy, will be the appropriate step if the other measures put in place are inappropriate fro their needs, ” he said.
Minister Howlin also this morning called for transparency in remuneration following the controversy surrounding the payments made to health executives above agreed pay scales:
“Everybody who’s on the public purse need to be clear about what their correct rate of pay is. That is the rate that should be paid to them,” he said.
The Minister said that the issue is not on the formal agenda of cabinet today but the Government may be briefed on the current position by Minister for Health James Reilly.
Video by Michelle Hennessey