The Government is to publish new personal insolvency legislation this morning, which will reduce the bankruptcy term in Ireland from 12 years to three.
The Bill will be launched by Justice Minister Alan Shatter and Finance Minister Michael Noonan.
Radically overhauling existing outdated legislation has been a top priority for the Government and the Troika.
The bill will include arrangements for some debt settlements. That would see some distressed mortgage holders having debts written down in some limited circumstances.
However, a majority of an individual’s creditors or lenders can block any deal.
Consumers will also have the bargaining chip of being able to declare themselves bankrupt if the banks are not being realistic.
Proposals published earlier this year said that bankruptcy would be reduced from 12 to three years.