Under a planned new law, the length of time Irish bankrupts must wait before they can apply to be discharged is to be cut from 12 years to five years, according to the Irish Independent.

Under current legislation, bankrupts in Ireland are placed under various restrictions for at least 12 years, at which point they can apply to be released. However, some bankruptcies currently last much longer than this, because there is no actual time limit.

But the new Civil Law (Miscellaneous Provisions) Bill will mean bankrupts are automatically released after 12 years, and can apply to be released after five.

The Irish Times states that there are 300 people who currently exceed 12 years in bankruptcy, all of whom will be released once the new law comes into force.

An expert at the IVA Forum said: “In Ireland, bankruptcy is far more restrictive than it is in the UK, but this new Bill could enable people to apply for release much sooner – which will be welcome news for many of those Irish residents who are currently wondering if bankruptcy is the best way forward for them.”