Bankruptcy Announcement

Today the Insolvency Service announced the commencement of the new bankruptcy regime. This represents a revolutionary change for those struggling to deal with unsustainable debts and unreasonable creditors. For the first time debtors have a mechanism to free themselves from creditors quickly and start anew.

The Irish Mortgage Holders Organisation is the only organisation in Ireland that provides a free bankruptcy service (including the required consultation with a Personal insolvency practitioner ) to debtors and if you would like to get more information or have any questions please contact us on 1890 623 624.

David Hall, CEO, said “we welcome the changes commenced today and support the efforts of the ISI to provide a mechanism to debtors to rid themselves of unreasonable creditors. These changes must lead to improved cooperation from creditors in dealing with debt in a sustainable and fair way”.

Below we have summarised the main changes announced today:

New Bankruptcy Legislation

  • The bankruptcy term will be reduced from 3 years to 1 year.
  • Income Payment Period from 5 years to 3 years ( still two extra years following discharge)
  • 3 year time limit for Official Assignee (OA) to issue proceedings with regard to Family Home. If no action taken by OA in this period the legal interest in the Family Home will re-vest in the debtors. ( non FH never automatically re-vest)
  • Easier for OA to Disclaim assets which have no value to the estate.
  • Discharge period extended up to maximum of 15 years where debtor non co operative/non disclosure of assets.
  • Statutory Sitting will be abolished once Court Rules changed- expected to come into effect 2-3 months’

Discharge Periods:

People Adjudicated on or before 29 July 2013:

  • Original 3 year discharge period.


People Adjudicated between 30 July 2013 29 July 2015

  • Discharge date of 29th July 2016


People Adjudicated on or after 30 July 2015

  • 1 year discharge period will apply.

Income Payment Orders:

Order due to expire on or before 29 July 2016:

  • Original Expiry Date


Order due to expire on or after 30 July 2016

  • Will expire 3 years from adjudication

*if not subsequently ordered to terminate earlier and IPO can be made for up to 5 years where court finds serious non disclosure and or non co operation.

  Family Home:

Re-vesting dates for undischarged bankrupts and discharged bankrupts where FH continue to vest in OA on 29 July 2016 and where OA has not issued proceedings for sale within 3 years of adjudication

People Adjudicated on or before 29 July 2013

  • FH will re-vest 29 July 2016

People Adjudicated on or after 30 July 2013

  • FH will re-vest 3 years from adjudication.

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