An article for Independent.ie has continued the discussion about introducing IVAs (Individual Voluntary Arrangements) in Ireland, to give Irish citizens an alternative to bankruptcy.

Insolvency expert Tom Kavanagh says that insolvency laws in Ireland are “draconian”, adding that bankruptcy can be a “life sentence” for some people.

This is because bankruptcy rules are much stricter in Ireland than in the UK – bankrupts can be subject to legal restrictions for up to 12 years, while most bankrupts in the UK are discharged after only 12 months.

There has been much talk about introducing IVAs in Ireland, and the Government is currently considering this move.

The closest thing to an IVA currently available in Ireland is a ‘scheme of arrangement’, in which the borrower arranges a deal to repay some or all of what they owe. This must be approved by 60% of their creditors, in terms of number and debt value.