New Bankruptcy rules reduce term and remove Statutory Sitting

The Minister for Justice and Equality has made an Order commencing specified provisions of the Bankruptcy (Amendment) Act 2015 on 29 January 2016. The main provisions are:

  • Reduce the normal duration of bankruptcy from 3 years to 1 year, except where the term is extended for non-cooperation or concealment by the bankrupt person.
  • Enable the Court to extend bankruptcy term to up to 15 years, in cases of particularly serious non co-operation by the bankrupt person.
  • Reduce the maximum duration of bankruptcy payment orders from 5 years to 3 years, except where this is extended for non-cooperation or concealment.
  • Existing bankruptcies will receive the benefit of the new changes, subject to a 6 month transition period to allow the Official Assignee in Bankruptcy to take appropriate measures in any case of suspected concealment or non-cooperation.
  • Remove the requirement for the statutory sitting of the High Court after bankruptcy adjudication