1 year bankruptcy term is now signed into law

Jim Stafford

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29 January 2016:
ISI PRESS RELEASE TODAY


The ISI welcomes the commencement of provisions contained within the 2015 Bankruptcy (Amendment) Act by the Minister for Justice and Equality, Ms. Frances Fitzgerald, T.D. These changes come into effect on 29 January 2016.


The new provisions:


· Reduce the bankruptcy term from 3 years to 1 year.

· Reduce the income payment period from 5 years to 3 years.

· Provide for the re-vesting of family homes in debtors, where the Official Assignee has not issued proceedings for the sale of the property within 3 years of the adjudication of bankruptcy.

· Widen the powers of the Official Assignee to disclaim assets in bankruptcy estates which have no value to the estate, yet may involve a burden on the estate.

· Extend the discharge period in bankruptcies up to 8 years and up to 15 years; depending on the seriousness found by the Court of non-co-operation with and/or non- disclosure of assets to, the Official Assignee.

The Act also envisages the abolition of a second Court sitting which persons declared bankrupt must subsequently attend. The ISI understands this change has not yet been commenced as it requires Court Rule amendments which should be finalised in the near future.


Lorcan O’Connor, Director of the ISI said "building upon other recent improvements, including a higher Debt Relief Notice threshold, the removal of the so called 'bank veto' and the new debtor support package announced by the Minister for Justice and Equality last week, the reduction in the bankruptcy term means that there has never been a better time to take the first step to solvency and a fresh start. The first step is to visit www.backontrack.ie." He encouraged debtors to seek the advice of a Personal Insolvency Practitioner (PIP) or Approved Intermediary (AI). PIPs and AIs are located around the country and contact details can be found on www.backontrack.ie or by calling the ISI’s information line 076 106 4200.


Chris Lehane, of the ISI, who is the Official Assignee in Bankruptcy and administers bankruptcy estates said that people currently in bankruptcy seeking clarity on their exit date and related requirements regarding payment orders etc. should visit the Bankruptcy section of the ISI website to see an Information Notice in this regard available here.


Jim Stafford
 
Thanks Jim,

I got this also from Justice in last hour

I wish to confirm that the Minister for Justice and Equality has signed the
Bankruptcy (Amendment) Act 2015 (Commencement) Order 2016.

The Order brings most provisions of the Act into effect from 29 January
2016.

The only exceptions to that date are a small number of provisions (sections
3, 4, 5, 13 and 14), which deal with the abolition of the requirement for a
‘statutory sitting’ of the High Court in bankruptcy cases. Those five
sections require changes to the relevant Court Rules, which are well
advanced, and will be commenced separately.

Doesn't look to be any leeway on the transition period but tbh I feared that
Thanks to everyone who pitched in on this no matter how small.
Well Done
 
Thanks Jim,

I got this also from Justice in last hour

I wish to confirm that the Minister for Justice and Equality has signed the
Bankruptcy (Amendment) Act 2015 (Commencement) Order 2016.

The Order brings most provisions of the Act into effect from 29 January
2016.

The only exceptions to that date are a small number of provisions (sections
3, 4, 5, 13 and 14), which deal with the abolition of the requirement for a
‘statutory sitting’ of the High Court in bankruptcy cases. Those five
sections require changes to the relevant Court Rules, which are well
advanced, and will be commenced separately.

Doesn't look to be any leeway on the transition period but tbh I feared that
Thanks to everyone who pitched in on this no matter how small.
Well Done
It will be interesting to see what interactions will be had with the OA office for those of us due to be released on the 29th of July over the next few months.
 
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