Labour TD Willie Penrose is working on legislation that would cut the period of bankruptcy from the current three years to just 12 months.
It follows widespread reports that some banks are refusing to finalise insolvency arrangements with some borrowers.
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Joan Burton says she believes if it is easier for people to go bankrupt, it may force the banks into action.
“One of the issue to look at there, maybe, well if we reduce the bankruptcy period maybe that will send a message to the banking institutions, particularly those who are kind of playing a game of 'now you see it, now you don't' by suggesting to people that a deal is possible and then pulling out at the last minute” she said.
