Fianna Fáil Justice Spokesperson Dara Calleary has welcomed proposed legislation published by the Government today that will see a reduction in the term of bankruptcy from 12 to 5 years.
The decision to reduce the bankruptcy terms was originally brought forward by the previous Government in the Civil Law Miscellaneous Provisions Bill 2010. However the Dáil was dissolved before the Bill passed through all stages.
Deputy Calleary said, “I am pleased to see that the Minister for Justice Alan Shatter has adopted the key proposals of the previous Government to strengthen family law maintenance orders and cut the term of bankruptcy.
“The Civil Law Miscellaneous Provisions Bill 2011 published today provides a first step towards more comprehensive reform of bankruptcy. Under existing laws, anyone who becomes bankrupt in Ireland faces a 12-year waiting period to be discharged from bankruptcy, compared with just 12 months in the UK. This Bill will reduce the 12 year term to 5 years.”
“This is a welcome step towards wider reform of our insolvency legislation. Our current bankruptcy laws are more severe than similar laws elsewhere. I am concerned that the severity of our laws may be contributing to a fear of failure and thus impeding potential entrepreneurs. I look forward to examining this Bill in detail and debating it in the Dáil.”