The recently published Civil Law (Miscellaneous Provisions) Bill 2011 contains various amendments to the current bankruptcy procedure in Ireland.

These include the introduction of a new “5 Year Rule” allowing a bankrupt to apply to court for an order discharging him/her from bankruptcy after five years subject to existing conditions in the law being met.

It also proposes the introduction of an automatic discharge from bankruptcy after 12 years provided the bankrupt can discharge the fees, costs and expenses of the bankruptcy and debts due to any preferential creditors. It is reported that this measure should affect 300 cases which are in the system.

Under the Bill creditors are entitled to present a bankruptcy petition against any debtor which is domiciled, ordinarily resident or has had a dwelling house in the state in the previous 3 years. This is an expansion of the current 1 year period.

The Bill aims to address some of the more onerous provisions of current bankruptcy law and further extensive reforms are due to follow in a Personal Insolvency Bill expected in early 2012.

Contributed by Delia McMahon.

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