Bankruptcy laws - Time for a change?

INDEPENDENT Dáil deputy and developer Mick Wallace and his company, M & J Wallace Ltd were the subject of summary judgement orders for €19 million in the commercial court yesterday.

Mr Wallace has admitted that he owed €40 million to various banks but “I’m not in a very good position ... I borrowed the money, I can’t pay it back so that’s my problem”.

If Mr Wallace is unable to satisfy his creditors he may be declared bankrupt which would mean he would have to resign his Dáil seat. He would also be defined as such for ten years and greatly constrained in the roles he might play in business.

This is in stark contrast to other developers who, facing similar difficulties, fled the country so they might face far less stringent censure. Mr Wallace’s predicament is another argument for reviewing our bankruptcy laws. They are out of line with international practice and should be reconsidered.