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Joint Committee on Legislation debate -
Wednesday, 27 Feb 1985

SECTION 10.

Question proposed "That section 10 stand part of the Bill."

(Limerick-East): This section by providing for the commencement of bankruptcy proceedings by petition verified by the affidavit of the petitioner re-enacts the existing law. The committee recommended the continuance of this method of initiating bankruptcy because they considered it essential that action be taken quickly to collect a debtor’s property in order to avoid fraudulent dealings. At present petition and adjudication almost invariably coincide. The committee were anxious to ensure that under any new legislation the date of petition and adjudication would as far as possible be the same. For this reason the crucial date for the purposes of the Bill is the date of adjudication and not, as under the existing law, the date of the filing of the petition. As pointed out in the explanatory memorandum existing provisions which allow a petition by one creditor to be availed of by another creditor if the former does not proceed are not being re-enacted because they are seldom availed of.

Question put and agreed to.
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