Tánaiste: Govt may reduce bankruptcy period to 12 months

Tánaiste: Govt may reduce bankruptcy period to 12 months

The Tánaiste Joan Burton says the Coalition may cut bankruptcy to just one year as a means of forcing banks to do a deal with those struggling with debt.

Labour TD Willie Penrose is working on legislation that would cut the period of bankruptcy from the current three years to just 12 months.

It follows widespread reports that some banks are refusing to finalise insolvency arrangements with some borrowers.

Ms Burton says she believes if it is easier for people to go bankrupt, it may force the banks into action.

She said: "One of the issues to look at there may be if we reduce the bankruptcy period, maybe that will send a message to the banking institutions.

"Particularly those that are playing a game of 'now you see it, now you don't', suggesting to people that a deal is possible then pulling it out at the last minute."


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