New bankruptcy laws come into force today, when Justice minister Alan Shatter signs a commencement order.

Under the new regime the time taken to exit bankruptcy will fall from the present 12 years to three.

There will also be a further two year period where the bankruptcy assignee can take half of a person's income to repay creditors.

Newstalk also understands that the cost of seeking bankruptcy will halve with the removal of the need to place an ad in a newspaper. That means costs will be limited to the €650 court fees and €100 stamp duty.

Newstalk's Business Editor Ian Guider explains.

"There is a provision on the new laws that for a two year period when somebody exits bankruptcy, the official assignee - the person who takes over all the creditor's debts and loans - they can take up to 50 percent of your salary if you get employment for a couple of years to repay some of your creditors" he said.

"I also understand that the cost of seeking bankruptcy will be cut in half, and that will be done by removing the need to place an ad in the newspapers telling people that you have been declared bankrupt" he added.

Public Expenditure Minister Brendan Howlin says it will offer relief to many still struggling from the financial crisis.

Alan Shatter is due to sign commencement orders later today.