The Insolvency Service of Ireland (ISI) Welcomes the Bankruptcy (Amendment)
Bill 2015
17 December 2015: The ISI welcomes the passage of the 2015 Bankruptcy (Amendment) Bill through
both Houses of the Oireachtas. The new legislation will reduce the normal duration of bankruptcy
from three years to one year.
The Bill states that its purpose is to reduce the general duration and impact of bankruptcy and in
certain circumstances, provide for the re-vesting in the bankrupt person of their interest in their
home, with a view to assisting an earlier return to solvency and to normal economic activity. The Bill
will allow for an extended duration of bankruptcy where a bankrupt person does not cooperate with
the bankruptcy process, or seeks to conceal income or assets. Other changes will streamline and
modernise key existing bankruptcy procedures, and strengthen or clarify the powers of the Official
Assignee.
Before making an application for bankruptcy, debtors are required to explore the alternative
solutions as contained in the Personal Insolvency Act, 2012 such as a Debt Relief Notice, Debt
Settlement Arrangement or Personal Insolvency Arrangement. Information on all of these solutions
is available on www.backontrack.ie.
Commenting on the Bill, Lorcan O’Connor, Director of the ISI said; “This is very significant for people
all over Ireland who may be struggling with unsustainable debt. In 2015 we have seen several
positive developments including the waiving of ISI fees, the increase of the Debt Relief Notice
threshold from €20,000 to €35,000 and the introduction of a court review of rejected Personal
Insolvency Arrangements involving the debtor’s home. We believe that this latest measure will
further assist people in difficulty to address their debt issues and get back on track financially. We
know that the festive period and New Year can be a challenging time of year for people suffering
with serious debt issues and we would therefore encourage anyone requiring assistance to visit
www.backontrack.ie for more information.”
Chris Lehane, of the ISI, is the Official Assignee in Bankruptcy and administers bankruptcy estates. He
welcomed the legislative changes; “These will result in people, who are in significant financial
distress, being more willing to consider bankruptcy as a solution . A balance has been struck in the
legislation in respect of the rights of debtors and creditors by way of the reductions in the bankruptcy
term and income payment period, together with increased extensions of periods for those who seek
to abuse the process. Abolishing a second Court sitting will streamline the bankruptcy process for all
involved. The widening of the power of disclaimer will allow for a more efficient and effective
administration of estates. The automatic re-vesting of debtor’s homes back into ownership of
bankrupt persons, where properties continue to be in negative equity, will give comfort around their
homes to those considering bankruptcy.”
All of the solutions offered by the ISI benefit from the official backing of the Courts and the ISI
encourages debtors to seek the advice of a Personal Insolvency Practitioner (PIP) or Approved
Intermediary (AI). PIPs and AIs are located around the country and contact details can be found on
the ISI’s website here or by calling the ISI’s information line 076 106 4200. Personal stories
concerning people who have availed of the solutions offered by the ISI, including bankruptcy, are
available here.
ENDS
For media queries please contact:
David Kinch 086 2322439 or Joe Bishop 086 012 1601 Phone: +353 (0)1 662 4712
Email: [email protected] and [email protected]
ISI websites: www.backontrack.ie and www.isi.gov.ie
Facebook: www.facebook.com – BackonTrack
Notes for Editors
In the main the changes are:

Term reduced to one year, as a general rule, for all new cases from the date of
commencement of the new legislation.

Broadly speaking, the legislation applies the benefit of the new rules to current bankruptcy
cases, subject to a short transitional period (six months)..

Ending of statutory court sitting

Income payment orders for a maximum of three years, as a general rule; for up to 5 years ,if
the Court considers the bankrupt is not co-operating with the bankruptcy or is trying to
conceal assets.

Serious penalties to be applied to cases where assets are not disclosed including potential
extension of bankruptcy term up to 15 years

Treatment of the home in bankruptcy – with some exceptions, the home will re-vest with
the bankrupt (but still be subject to any outstanding mortgage) if the Official Assignee has
not taken action to dispose of it within three years of adjudication. Re-vesting is the process
whereby the Official Assignee’s acquired interest in the bankrupt’s home transfers back to
the bankrupt , where certain conditions are met.
Following any necessary amendments to the relevant Court Rules, the Minister for Justice and
Equality will sign a Commencement Order for the new legislation. It is expected that this will occur
early in 2016.