Minister for Justice Frances Fitzgerald will bring a bill to cabinet tomorrow to reduce the bankruptcy period from three years to one year.
For those already in the bankruptcy process, the period will be 18 months.
Under the bill penalties for those who try to hide their assets will be increased.
In serious cases of non-cooperation, a person’s bankruptcy period will be extended up to 15 years. At present, the maximum penalty is eight years.
Under the current system, a person may still have to make payments for up to five years after the bankruptcy period expires, however, this will be reduced to three years where there is full cooperation.
This development follows a campaign by Labour Deputy Willie Penrose, who introduced his own bill on the issue last March.
