The Cabinet has signed off on plans to cut bankruptcy to one year. Legislation is to be enacted within a few weeks.

It will cut the bankruptcy period from the current three years - bringing it into line with England, Wales and Northern Ireland.

The much-anticipated changes to the bankruptcy laws were recommended by an all-party committee earlier this year, and today a memo was brought by the Justice Minister Frances Fitzgerald.

Laws are expected to be rushed through so that they can take effect before the New Year.

Earlier, Public Expenditure Minister Brendan Howlin said the new laws will help people to recover from mistakes made in the past.

"Bankruptcy is not an easy option for anybody. It is the last option for somebody. The stigma of bankruptcy will still exist. The problems in relation to the court orders and paying back will continue for years after the bankruptcy. So it certainly won't be an easy option for anyone. Anybody who is facing into bankruptcy will know how difficult and challenging it is for themselves and their family."

And Tánaiste Joan Burton says she hopes it will assist people who have so far been reluctant to engage with banks.