Jan. 25 (Bloomberg) -- Ireland’s government proposed cutting the term of automatic discharge from bankruptcy to three years from 12 years, as part of an overhaul of insolvency laws.
The proposals provide for new out-of-court debt settlements systems, including debt relief certificates to allow for the full write off of qualifying, unsecured borrowings of as much as 20,000 euros after one year.
“People are absolutely driven down to the ground by the weight of debt,” Finance Minister Michael Noonan told reporters in Dublin today. He said the govenrment couldn’t allow a large proportion of people “to continue in half-like limbo land.”
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