Challenge mounted to Bankruptcy laws

While it had been reported previously, that a group of Solicitors and Barristers had formed to assist those facing difficulties with financial institutions and repossession orders, the ambit would appear to have widened to take on the infamously outdated Bankruptcy Laws in the Republic of Ireland.

It is reported in yesterday’s (the 5th of June 2011) Sunday Business Post (http://bit.ly/kPlinK), that this group is focusing on the sledge hammer style application and implication, the current laws have in this area.

It is believed that the lack of a proportionate application and outcome in Bankruptcy cases is the fatal flaw which could lead to the Laws as they stand being struck down on the grounds of lack of compatibility with the Constitution.

For example there is a whole class of people for whom a declaration of Bankruptcy means that they can not continue in their current employment such as Members of the Oireactas and indeed Solicitors.

Indeed in a separate report in the Irish Times on the 31st of May (http://bit.ly/mATKWF), revealed that a former Anglo Irish Bank is being pursued for a debt of €1 million Euro along with three others.

Former Attorney General, John Rodgers SC, informed the Court of the development.

It is not an entirely unexpected series of developments in light of the draconian nature of the laws in this country.

Once adjudicated a bankrupt there is 12 years without any economic freedom whatsoever. Thereafter, there is no second chance for many.

This contrasts with the systems in the United States and that of the United Kingdom, where the slate is wiped clear within as little 12 months.

It is clear that with the ever increasing number sof people in financial difficulties, who them selves have nothing further to loose, that such actions will proceed and that a ruling from the Supreme Court is inevitable

Dermot F. Conway
Conways Solicitors
dermot@conways.ie
+353214901000