Insolvency bill will expose debtors for up to eight years

Plans to reduce the terms of bankruptcy for struggling borrowers will leave them facing eight years of insolvency terms instead of the proposed three.

The claim was made by advocacy groups yesterday that expressed concern about the Government’s proposed Insolvency Bill.

Free legal advisors and mortgagee support groups said banks could chase the incomes of debtors five years after they came out of bankruptcy.