The Irish Mortgage Holders Organisation has said the legislation dealing with insolvency needs a radical overhaul.

The group has welcomed the reduction in the bankruptcy period to 12 months, with the change due to come into effect by the end of this year.

However, the organisation says legislation will have to be changed to take account of this - and it is an opportunity for a complete overhaul.

CEO David Hall says the current laws are sadly lacking.

Speaking on Down to Business earlier, Mr Hall said the new bankruptcy arrangement "is long overdue and is essential for those who are in debt to have an avenue of a one year bankruptcy.

"However there are other solutions that need to be addressed in that. The Insolvency Service is a service there to implement legislation - and the legislation is crap. This one year bankruptcy is going to require the legislation to be changed also," he added.

He also discussed how the recently announced changes are 'logical and sensible':