New bankruptcy laws due within weeks

New bankruptcy laws are expetced to be introduced before Christmas.

The Cabinet held an unexpected meeting by telephone this evening to sign off on legislation to shorten the bankruptcy period from three years to just one.

Labour TD Willie Penrose (pictured), who proposed the new rules, has called them a "massive victory for common sense".

Earlier this month, Minister Brendan Howlin said the new laws would help people to recover from mistakes made in the past.

"Bankruptcy is not an easy option for anybody - it's the last option for somebody," he said.

"The stigma of bankruptcy will still exist, the problems the court orders and paying back will continue for years after the bankruptcy - so it certainly won't be an easy option for anybody.

"And anybody who has to face into it will know how difficult and challenging it is for themselves and their families."