Dáil Éireann Debate, Thursday - 12 March 2015
164. Deputy Michael McGrath asked the Minister for Justice and Equality her views on the proposal to reduce the discharge period from bankruptcy from three years to one year; if she will provide details of any examination carried out by her Department or by anyone on her behalf on the impact of such a move; and if she will make a statement on the matter. [10934/15]
View answerAs the Deputy is aware, I am considering the outcome of a review of the insolvency legislation, following the Statement of Government Priorities 2014-2016, with specific attention to ensuring that the legislation can work effectively to support those who are struggling with unsustainable debt. This is a priority for me and for the Government.
As the Deputy will recall, a very substantial change was made in 2012 when the bankruptcy discharge period was reduced from 12 years to three years. As the Deputy will also know, our near neighbour has reduced this period down to 1 year. The Deputy will also be aware that there has been much recent public discourse about the possibility of further reduction of the period in Ireland.
I have already informed the Dail that I am currently engaging with my colleague the Minister for Finance regarding the recent review on this matter, and that I intend to bring proposals to Government to address the range of issues which arise. The Taoiseach has already stated that announcements on proposals will be made in the near future.
I am anxious to ensure that any steps which are to be taken now following the recent review will be ones which will directly assist those in extreme debt and mortgage difficulty and which will service the very fundamental principle that loss of ownership of a family home through repossession should be a last resort. This is basic to our consideration and evaluation of those options, legislative and otherwise and including the bankruptcy period, which are available to us.
