Coalition row looms over bankruptcy term change
Taoiseach Enda Kenny said easing access for people to claim bankruptcy could directly hit small businesses and credit unions, who would lose out on debts owed.
Labour are pushing for the bankruptcy term to be reduced from three years to one. Westmeath TD Willie Penrose, who has published a bill to change the terms, told RTÉ the current system was not working.
“You consider the banks and financial institutions. Their motive is profit, their bible is greed and their god is money and these ways are not the ways of the Irish people.”
He said the bill proposed to harmonise the period of bankruptcy here with the North’s and Britain’s.
The proposal is being reviewed by the Department of Finance. Mr Penrose said it was holding up the bill as any easing of the terms might impact on banks, some of which are being lined up to be sold by the State.
Mr Kenny yesterday told the Dáil previous data had shown where bankruptcy applies 70% of cases end up with repossession of the house. Such situations were contrary to Coalition policy.
He also said more bankruptcy cases could see businesses hit directly.
“How many people throughout the country running small businesses in Kilkenny, Cork or Clare, or how many credit unions that are owed money would lose out completely if we had a system whereby a debtor would decide that he is getting out and declaring bankruptcy? Those people would lose out.”
Mr Kenny said the situation needed to be examined if a “debtor can decide to become bankrupt and say ‘tally-ho’”.
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