Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Shutterstock/Champion studio

It is about to become much easier to go bankrupt in Ireland

Taoiseach Enda Kenny has said that he supports the move to reduce the length of time an individual is bankrupt for.

FROM NEXT YEAR it is going to become a lot easier to become bankrupt in Ireland.

Reforms are set to be introduced to reduce the period that an individual is bankrupt for down from three years to one year, Taoiseach Enda Kenny has said.

Speaking about the Personal Insolvency (Amendment) Act 2015 in the Dáil today, he said, “Certainly my intention would be that it can happen”.

“There are a number of pieces of legislation which are on the stocks to move through and if it is possible to put this through, I certainly will be strongly in support of it,” he went on.

It is the passing of this legislation that would bring about the change.

Currently the Irish system of bankruptcy is out of sync with the the one-year terms that exist in Northern Ireland, England, Wales and Scotland.

Labour TD Willie Penrose, who drafted the amendment to the Personal Insolvency Act, has been a major proponent of a change to the Irish bankruptcy system. 

In a previous statement, he said:

Rather than have people who might well be innovators and entrepreneurs out of business for a minimum of 3 years… surely it is better if they can return to making economic contributions just like their counterparts elsewhere.

In some circumstances it is currently possible for a person to be bankrupt for eight years if a periodic payment order is sought.

A report from the Joint Committee on Justice, Defence and Equality was delivered to Minister for Justice Frances Fitzgerald in July and an analysis of this is expected to be delivered to cabinet in the next fortnight.

The news of the forthcoming legislation has been welcomed today by the Irish Mortgage Holders Organisation.

“This development will be of huge benefit to those debtors who are seeking a fresh start and want to rid themselves of debt, a debt that can never be repaid as well as unreasonable creditors,” said its CEO David Hall.

Read: How one man went from a runaway living in a slum to starting a billion-dollar company

Also: ‘Bankrupt’ rapper 50 Cent has a 24-bathroom house with a nightclub in it

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
30 Comments
    Install the app to use these features.
    Mute Paul Fanshawe
    Favourite Paul Fanshawe
    Report
    Nov 11th 2015, 5:54 PM

    It won’t be any easier to go bankrupt according to the detail given in this article. What the writer means to say is that it will become much easier to come OUT of bankruptcy.

    96
    Install the app to use these features.
    Mute jack frost
    Favourite jack frost
    Report
    Nov 11th 2015, 5:41 PM

    Nothing is easy in this country.

    Devil will be in the detail.

    70
    Install the app to use these features.
    Mute family guy
    Favourite family guy
    Report
    Nov 11th 2015, 8:48 PM

    It should be automatic discharge after the year. Not like it is now where it is Minimum 3 years.

    11
    Install the app to use these features.
    Mute Paul Wallace
    Favourite Paul Wallace
    Report
    Nov 11th 2015, 5:44 PM

    I don’t think it should be so easy, what about people who have control over their finances. Why should we pay more in premiums because of idiots.

    49
    Install the app to use these features.
    Mute Niall O' Sullivan
    Favourite Niall O' Sullivan
    Report
    Nov 11th 2015, 5:50 PM

    Many business go to the wall. Most fail. Without the ones that succeed we’d be without our largest private employers – SMEs.

    You can’t keep them in bankruptcy and without access to social welfare in some cases, or actually in a state of stasis on the dole in others, unable to become directors and so start new companies, unable to access loans or credit for that long. People make mistakes. Many a relatively healthy business went out of business through the credit squeeze directly after the crash.

    64
    Install the app to use these features.
    Mute Drew TheChinaman :)
    Favourite Drew TheChinaman :)
    Report
    Nov 11th 2015, 6:06 PM

    Ever considered the fact that most businesses depend on the stupidity of idiots to make a significant portion of their revenue….

    Credit will get a lot tighter, with banks and institutions coveting customers with a good credit history and offering much better rates and higher credit limits to responsible people with assets and savings. Bankruptcy only gets rid of the negative effect of defaulting it doesn’t give you any good credit history

    11
    See 2 more replies ▾
    Install the app to use these features.
    Mute Savage Stuff
    Favourite Savage Stuff
    Report
    Nov 11th 2015, 6:09 PM

    Pretty disgraceful and narrow minded attitude to failure. Must be easy being flawless. Oh to never make a poor decision

    54
    Install the app to use these features.
    Mute family guy
    Favourite family guy
    Report
    Nov 11th 2015, 8:49 PM

    Paul if I could reach into the screen and thump you I would!!

    10
    Install the app to use these features.
    Mute Elma Phudd
    Favourite Elma Phudd
    Report
    Nov 11th 2015, 5:45 PM

    Good. This will help if we ever have a massive economic downturn.

    44
    Install the app to use these features.
    Mute Affinity
    Favourite Affinity
    Report
    Nov 11th 2015, 11:33 PM

    It will happen again history, we are nowhere out of the woods yet thanks to Enda giving Germany a Dobby all our money. And Germany are now going to use our money to pay corrupt African countries to try and stop economic migrants. Now that’s a joke.

    10
    Install the app to use these features.
    Mute SCO Electrical
    Favourite SCO Electrical
    Report
    Nov 11th 2015, 5:50 PM

    May order a 152 jeep to see me out over the Christmas holidays so.

    43
    Install the app to use these features.
    Mute Niall O' Sullivan
    Favourite Niall O' Sullivan
    Report
    Nov 11th 2015, 5:45 PM

    “In some circumstances it is currently possible for a person to be bankrupt for eight years if a periodic payment order is sought”

    So let’s bring in this legislation 7 years after the crash? By the time it’s introduced the people worst affected will naturally be coming out of that period of bankruptcy anyway so let’s leave them sit there for 7 years, and then introduce it when it’s of little or no use to them?

    40
    Install the app to use these features.
    Mute Daffy the Bear
    Favourite Daffy the Bear
    Report
    Nov 11th 2015, 6:25 PM

    Election.

    32
    Install the app to use these features.
    Mute Matthew Moore
    Favourite Matthew Moore
    Report
    Nov 11th 2015, 7:53 PM

    As someone who is currently bankrupt, I really hope they go through with it. This proposal has been knocking around since March with many false starts. Fingers crossed that this time, whatever political games there at now, will work in our favour.

    35
    Install the app to use these features.
    Mute Rosie Gluten
    Favourite Rosie Gluten
    Report
    Nov 11th 2015, 7:56 PM

    “This development will be of huge benefit to those debtors who are seeking a fresh start and want to rid themselves of debt, a debt that can never be repaid as well as unreasonable creditors,” said its CEO David Hall.

    You are correct,David!

    Unreasonable creditors whom hire private detectives to steal personal data from the Department of Social Protection..

    If this comes to fruition it will strengthen the hands of those hoping to do deals with banks ..

    15
    Install the app to use these features.
    Mute men in black hoods
    Favourite men in black hoods
    Report
    Nov 11th 2015, 5:59 PM

    If they were any good at innovating or entrepreneurship they wouldn’t go bankrupt in the first place.

    8
    Install the app to use these features.
    Mute Tweed Cap
    Favourite Tweed Cap
    Report
    Nov 11th 2015, 6:24 PM

    If by “they” you mean other people we’ll safely assume you never the balls to try your own business and probably never will. You’ll be surprised by how many now successful people went bankrupt at the start.

    41
    Install the app to use these features.
    Mute Ibhar Mac Suibhne
    Favourite Ibhar Mac Suibhne
    Report
    Nov 11th 2015, 7:08 PM

    Henry Ford … Bankrupt 10 times before he started ford motorcar

    27
    See 2 more replies ▾
    Install the app to use these features.
    Mute The Destroyer
    Favourite The Destroyer
    Report
    Nov 11th 2015, 7:08 PM

    Exaclty.. What do you do @men in black hoods? How many business have you run successfully? How many people do you employ?

    16
    Install the app to use these features.
    Mute Ibhar Mac Suibhne
    Favourite Ibhar Mac Suibhne
    Report
    Nov 11th 2015, 7:10 PM

    Correction: he was bankrupt twice!

    15
    Install the app to use these features.
    Mute Pete Gibson
    Favourite Pete Gibson
    Report
    Nov 11th 2015, 8:32 PM

    The legal fees involved in having yourself declared bankrupt means you have to be fairly well off to go bankrupt.
    Lots of people cannot afford to go bankrupt.
    Costs too much.

    7
    Install the app to use these features.
    Mute Matthew Moore
    Favourite Matthew Moore
    Report
    Nov 11th 2015, 8:59 PM

    I did it myself, it’s around €300. You’ll need to see a PIP too and get a letter stating that you are suitable for bankruptcy. I found one willing to give me a fig out and assess my case for free. If you want someone to do the whole lot with you, mortgageholders.ie will do it for free if you pay the €300. Have a look at my blog if you are interested in doing it yourself. http://www.forbetterorbankrupt.wordpress.com

    21
    Install the app to use these features.
    Mute James Kelly
    Favourite James Kelly
    Report
    Nov 11th 2015, 9:28 PM

    The reduced period is in line with UK jurisdictions so will go through as we must ape the UK as much as possible. It will be very easy to exit personal insolvency as long as the bankrupt cooperates with the trustee in bankruptcy . If not then automatic exit should be refused and a bankruptcy restriction order should be imposed for up to say 12 years. There are loads of chancers out there who won’t be able to resist being messes anf try and hide assets etc so they need dealt with

    6
    Install the app to use these features.
    Mute Timmy O Sullivan
    Favourite Timmy O Sullivan
    Report
    Nov 11th 2015, 6:51 PM

    Ya every Thursday

    2
    Install the app to use these features.
    Mute Michael Sands
    Favourite Michael Sands
    Report
    Nov 11th 2015, 9:16 PM

    http://www.independent.ie/business/irish/oecd-warns-of-danger-of-new-property-price-boom-34184088.html

    But who will the people be who will be going bankrupt then, I wonder???

    2
    Install the app to use these features.
    Mute MeanderingsNI
    Favourite MeanderingsNI
    Report
    Nov 12th 2015, 10:04 AM

    Donald Trump has been bankrupt numerous times, as have most of the Dragons Den business people. Its a part of the business world, nothing to be ashamed of. Nothing ventured, nothing gained..

    1
    Install the app to use these features.
    Mute Derek Moran
    Favourite Derek Moran
    Report
    Jul 29th 2016, 8:12 PM

    A bit late now 8 years after the crash and the economy on the up.

    1
    Install the app to use these features.
    Mute Bryan Kevin Peregrino
    Favourite Bryan Kevin Peregrino
    Report
    Feb 16th 2016, 4:29 AM

    That is a good new reform in Irish bankruptcy system! “Rather than have people who might well be innovators and entrepreneurs out of business for a minimum of 3 years… surely it is better if they can return to making economic contributions just like their counterparts elsewhere.” That is absolutely right we must give our people another chance to make good use of this skills that will contribute to our economy. I hope Australia will see this prospective as well. If you want to learn more about bankruptcy system in Australia, I highly recommend looking at http://www.bankruptcyexpertstoowoomba.com.au.

    1
    Install the app to use these features.
    Mute Lee Pay Kho
    Favourite Lee Pay Kho
    Report
    Feb 15th 2016, 11:48 PM

    That is a good new reform in Irish bankruptcy system! “Rather than have people who might well be innovators and entrepreneurs out of business for a minimum of 3 years… surely it is better if they can return to making economic contributions just like their counterparts elsewhere.” That is absolutely right we must give our people another chance to make good use of this skills that will contribute to our economy. I hope Australia will see this prospective as well. If you want to learn more about bankruptcy system in Australia, I highly recommend looking at http://www.bankruptcyexpertstoowomba.com.au.

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.