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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.
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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.
Nothing is easy in this country.
Devil will be in the detail.
It should be automatic discharge after the year. Not like it is now where it is Minimum 3 years.
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.
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.
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
Pretty disgraceful and narrow minded attitude to failure. Must be easy being flawless. Oh to never make a poor decision
Paul if I could reach into the screen and thump you I would!!
Good. This will help if we ever have a massive economic downturn.
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.
May order a 152 jeep to see me out over the Christmas holidays so.
“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?
Election.
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.
“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 ..
If they were any good at innovating or entrepreneurship they wouldn’t go bankrupt in the first place.
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.
Henry Ford … Bankrupt 10 times before he started ford motorcar
Exaclty.. What do you do @men in black hoods? How many business have you run successfully? How many people do you employ?
Correction: he was bankrupt twice!
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.
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
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
Ya every Thursday
But who will the people be who will be going bankrupt then, I wonder???
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..
A bit late now 8 years after the crash and the economy on the up.
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.
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.
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