Insolvency Update: The New Bankruptcy Act Commenced – 1 Year Term

Author:Mr Maurice Phelan, Judith Riordan, Frank Flanagan and Gareth Steen
Profession:Mason Hayes & Curran
 
FREE EXCERPT

Bankruptcy law in Ireland is now, broadly speaking, in line with that of the United Kingdom.

In particular, for bankrupts who cooperate with the bankruptcy process:

bankruptcy will end in one year; and their interest in their family home will re-vest in them after 3 years. Notably however, the courts will have discretion to extend the period of bankruptcy for up to 15 years for non-cooperative individuals and those who have concealed or transferred assets to the detriment of creditors.

Minister Fitzgerald, Minister for Justice and Equality, signed an order commencing the Bankruptcy (Amendment) Act 2015 (the "Act") into law on Friday 29 January 2016 (the "Commencement Date"). The Act makes a number of significant amendments to the Bankruptcy Act 1988 (as amended) (the "1988 Act").

Term of bankruptcy

The Act sets a new default term of 1 year from the date of adjudication.

Existing bankruptcies on the Commencement Date will be discharged as follows:

if due to expire within 6 months of the Commencement Date, on that assigned date; or if due to expire more than 6 months after the Commencement Date, on the later of: 6 months after the commencement date; or one year from the date of the adjudication. Where a bankrupt has:

failed to co-operate with the Official Assignee; or concealed assets, or income from, or failed to disclose assets, or income to the Official Assignee, which could have been realised for the benefit of creditors the court may, where it considers it just, on the application of the Official Assignee (or a creditors' trustee where appointed), make an order substituting a date, up to 8 years from the date of adjudication for the date on which the bankruptcy would have expired.

Similarly, in more serious cases, this term may be extended to 15 years where the court considers it just to do so.

Recognition of civil partnerships and cohabitants

The 1988 Act has been amended so that a court order is required before the...

To continue reading

REQUEST YOUR TRIAL