Bankruptcy legislation set to be approved by Cabinet

Legislation to shorten the bankruptcy period to one year is set to be approved at Cabinet this morning.

Ministers will also be updated on plans to save the inquiry into IBRC - but they are not likely to sign off on emergency laws to help it resume.

The much-anticipated changes to the bankruptcy laws were recommended by an all-party committee earlier this year, and today a memo will be brought by Justice Minister Frances Fitzgerald.

She will propose legislation to reduce the bankruptcy period to one year - bringing it into line with England and Wales - and the laws will be rushed through so that they can take effect before the New Year.

UPDATE (10.45am): Minister Brendan Howlin says the new laws will 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."

Earlier: It is less clear is what will happen to the Cregan inquiry, which is set to be discussed this morning for the first time since Opposition leaders tabled their ideas for how to save it.

Sources stressed that there were several issues to be overcome - and appeared to play down the prospect of ministers agreeing today on what the next steps should be.

They added that there is still a prospect of emergency laws being passed before Christmas - but that depends on a clear plan being agreed, which may not happen this morning.