Multiple insolvency events

The record of a debtor’s entry to bankruptcy presently remains on the Insolvency Register for four (4) years after discharge. The Bill proposes that the record of a debtor’s entry to a No Asset Procedure (NAP) will remain for a period of four (4) years after discharge.

The Bill also proposes that where a debtor has been adjudicated bankrupt on two or more occasions or has entered NAP and then bankruptcy in subsequent years, the record of their entry to each of their insolvency procedures will remain on the Insolvency Register permanently. For example, if Bob enters NAP in 2004 and then enters bankruptcy in 2007, the record of his entry into both his NAP and subsequent bankruptcy will remain on the Insolvency Register indefinitely. Similarly, if Jane was adjudicated bankrupt in 1995, 1999 and then again in 2005, the record of her three bankruptcies will remain on the Insolvency Register indefinitely.

It is proposed that the above change would apply to all insolvency procedures entered into before and after the date of enactment.

For more information about this matter, please visit our NAP section.