The Cabinet is expected to pass legislation today reducing the duration of bankruptcy from three years to one.

Labour TD Willie Penrose’s Bill has been welcomed by the Irish Mortgage Holders’ Organisation (IMHO) as “the single most positive thing” the government has done for people in debt.

IMHO chief executive David Hall said the period for income payment orders - when bankrupt individuals are pursued for income in excess of living expenses - should be reduced from five years to two, rather than the three years proposed in the Bill.

“There are other restructuring that need to be put in place around the entire insolvency legislation which is a complete unworkable piece of legislation that needs urgent review,” he said.

Source: www.businessworld.ie