New Bankruptcy rules reduce term and remove Statutory Sitting

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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