Under the Bankruptcy Act 1988 the period of application to court for discharge of a bankruptcy was 12 years. The conditions of discharge were full realisation of the estate of the bankrupt, payment of fees and expenses and of preferential debts. There was no provision for automatic discharge of a bankruptcy and it meant that where liabilities were not discharged the bankruptcy could last indefinitely. I made provision in the Civil Law (Miscellaneous Provisions) Act 2011 for discharge of a bankruptcy after 5 years subject to the conditions for discharge specified in the Act of 1988. I introduced for the first time provision for automatic discharge of a bankruptcy after 12 years have elapsed since the adjudication of bankruptcy. The new provisions commenced on 10 October 2011.
The question of further reductions in the period for discharge of a bankruptcy, including automatic discharge, is being considered in the context of my Department's development of proposals for the Personal Insolvency Bill that is a commitment in the Government Legislation Programme and under the EU/IMF Programme of Financial Support for the State.