JUSTICE COMMITTEE REPORT RECOMMENDS BANKRUPTCY TERM OF ONE YEAR - KENNY

Posted on July 8, 2015 4:41 PM   |   Permanent Link   

Sean Kenny, Dublin Bay North Labour TD and member of the Oireachtas Justice Committee has welcomed the release of a report by the Justice Committee that recommends that the term of bankruptcy be reduced to one year.

"The issue of bankruptcy is a matter that has become a key area of debate in Irish society following the banking crisis and consequent financial collapse. The Oireachtas Justice Committee examined one very specific matter, namely, the reduction of the bankruptcy term and it has recommended that reducing bankruptcy to one year for combined debts of less than €500,000, is the way forward for society, with a longer term of bankruptcy applied to larger and more complex business debts. This would, I believe, ensure that those who purchased a home and have since had to turn to bankruptcy in the financial crash, would be treated more fairly and also put a stop to Irish people engaging in bankruptcy tourism in other jurisdictions and circumventing Irish law."

"I believe that bankruptcy should not be used as a solution that serves as an easy way for someone in financial difficulties to get out of their responsibilities to their creditors when new mechanisms that the current Government have put in place, such as a Debt Relief Notice, a Debt Settlement Arrangement or Personal Insolvency Arrangement, might be more appropriate. I say this because it must be kept in mind that not all creditors are large organisations but can also take the form of small town businesses, suppliers and contractors, so I think that a balance must be struck between those who are in debt and those who are owed money to ensure the fairest approach is taken."

"That said, I do believe, along with Labour TD Willie Penrose, who in fact proposed this initiative by the Justice Committee, that longer terms of bankruptcy can be oppressive and can prevent people from being able to move on with their lives again after being bankrupted. It is important that people be able to do so where it is appropriate and I was happy to support this view when it came time to approve the report."