Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

Amendment No. 135 would seek to have the proposed bankruptcy payment order terminated with immediate effect once the bankrupt is discharged. The Bill significantly reforms the provisions with regard to automatic discharge of bankruptcy by reducing the period from 12 years to three years. With the likely increase in persons in bankruptcy from the current level of approximately 30 persons per year to a number likely to be in the low thousands, it is likely that persons adjudicated bankrupt may be in employment. In this regard a bankruptcy payment order to repay some of the debt is appropriate. However, we have no wish to impact on the incentive to retain or seek employment on the part of a debtor or have creditors seek to unduly penalise debtors in the timing of the application for orders. I have given this matter some further thought and I am unsure whether it is possible to link the order directly to the discharge in the fashion suggested in the amendment. However, I am in agreement with the thrust of the amendment.

I propose to bring forward an amendment on Report Stage limiting the effect of a bankruptcy payment order to three years in total. Such a period may be required to be made cumulative over a certain defined period to take account of any variations that may be ordered by the court with regard to the resources available to the debtor. I intend to discuss the matter further with the Parliamentary Counsel and I hope we will be in a position to come back to the House on Report Stage. On this basis I invite the Senator to consider withdrawing the amendment and we will return to this issue.