Bankruptcy period cut from 12 to three years

The Government has introduced new bankruptcy laws as part of a personal insolvency regime in an effort to solve the massive mortgage arrears and consumer debt crisis.

The new regime will reduce the period of bankruptcy from 12 years to three years in an effort to make it fit for purpose and deal with cases at the extreme end of the insolvency scale.

The Government announced in 2011 that it planned to completely overhaul personal insolvency legislation. The most common type of debt resolution will be the new personal insolvency arrangements.