The Bankruptcy (Amendment) Bill 2015 has been passed without amendment and was signed by the President on Christmas Day 2015. The headline amendment in the Bill is the reduction of the term of bankruptcy from 3 years to 1 year. This mirrors the term of bankruptcy in the UK. In addition to certain procedural amendments, the key amendments are summarised as follows:
- A reduction in the duration of bankruptcy from 3 years to 1 year (where the bankrupt has co-operated fully in the process)
- A reduction in the maximum period of income payments from a bankrupt to creditors from 5 years to 3 years
- An extended bankruptcy term (up to 15 years in serious cases) where the bankrupt has not co-operated or given full disclosure
- The home of a bankrupt will re-vest in the bankrupt (subject to any mortgage) after 3 years if it has not been sold as part of the bankruptcy process.