In June this year, the Government announced its plans to publish a draft Civil Law Reform Bill for pre-legislative scrutiny, and last Thursday justice minister Bridget Prentice announced that the bill be published in December.
The intention of the bill had been to reform, amongst other areas, the law of limitation of actions, including the time civil debts can be chased. The intention was to halve this from the current six years down to three.
I, along with my clients, colleagues and counterparts in other firms, am pleased that the Government has decided not to go along with this change, and that the statute of limitations for civil debt will remain at six years.
In a written parliamentary answer, Ms Prentice said that consultation with key stakeholders demonstrated that there were insufficient benefits and potentially large-scale costs associated with the reform.
Good news for creditors in these challenging times!