The Dáil has passed legislation that will cut the bankruptcy period to one year.

The Seanad will also pass the legislation this week, allowing the change to come into force by the end of the year.

But it could also see bankruptcy extended to 15 years for some people who do not cooperate or who try to conceal assets or income.

For those already in the bankruptcy process, the period will be cut to 18 months.

Justice Minister Frances Fitzgerald says now is the right time to make this change.

But she says that those who try to hide things in the process will see higher terms.