New Insolvency Laws In Ireland

Just this past week Minister for Justice Alan Shatter signed an order putting the new bankruptcy law into effect. The new law will make it easier for people in the Republic of Ireland to go bankrupt, and one of the hopes in doing this is to stop “bankruptcy tourism”. This is where someone from ROI would move to the UK, where the insolvency laws are more lenient and go bankrupt there as EU debts can be included in a UK bankruptcy.

Currently in Ireland bankruptcy is very harsh as you are bankrupt for a period of 12 years.

The new law states a person will be bankrupt for a period of three (3) years, but could be required under a court order to make payments to creditors in the bankruptcy for a period of five (5) years.

Anyone who is currently bankrupt and has been for three (3) years or more will automatically be discharged from bankruptcy within six (6) months.

There is a large number of people expected to take advantage of this new law and go bankrupt.

The new bankruptcy law as well as other changes in Ireland's Personal Insolvency Act 2012, make it easier for people who may have been struggling for years with debts to repay the debts with the court's assistance, or be relieved of the debts completely through bankruptcy.