New one year term is good news for those driven to bankruptcy says Westmeath TD

 

 

Going bankrupt used to mean years of humiliation – but a proposal by Westmeath TD Willie Penrose that bankruptcy be reduced to just one year is to come into force.

“It’s a massive victory for common sense,” Deputy Penrose told The Westmeath Examiner this week after the cabinet moved to introduce a one-year bankruptcy arrangement.

He said the cabinet decision recognised the reality of the situation in which people now find themselves.

 “I am delighted with the decision, because this is something that the Labour Party has been championing for some time, and I look forward to it progressing into law.

“I previously brought forward proposals to reduce the bankruptcy period to one year. It was not put forward as a unique solution to the mortgage arrears issue, but to contribute to it.

“It will bring Ireland into line with that which prevails in the UK and other jurisdictions, and so level the playing field.

“Rather than prohibiting businesses or individuals from operating for a minimum of three years it is more desirable if they can return to making economic contributions as soon as possible like their international counterparts,” he said.

Deputy Penrose said the new arrangement would also put an end to Irish people engaging in “bankruptcy tourism” and circumventing Irish law.

“Although this reduction might be of some small assistance in helping a person in mortgage arrears, insofar as it might give greater bargaining power, the main point of reducing the discharge period is to focus upon the significant and unsustainable debt levels, which people and businesses of all types are lumbered with.

“Some argue quite fairly that this may have arisen from imprudent borrowing, the counter argument is that likewise there was imprudent lending engaged with, and there has to be fairness for both contracting parties.

“A balance must be struck between those who are in debt and those who are owed money to ensure the fairest approach is taken. Up to now, it appears the load has been carried unilaterally, and clearly unfairly, by the borrower, so this legislative change will now hopefully level the playing pitch for debtors. I trust the proposed legislation will now be implemented speedily,” Deputy Penrose concluded.