Individuals who owe millions of euro are being advised not to enter negotiations with banks until new bankruptcy legislation is enacted.

Personal insolvency experts are advising clients who owe vast sums of money that legislation due next year will allow them to write-off their debts.

The Department of Finance has received the findings from the expert group that has been looking at mortgage and personal debt. This report will feed into efforts to reform the country's insolvency and bankruptcy laws.

One of Ireland's leading insolvency experts told RTÉ News that people in negative equity could not expect debt forgiveness "in a month of Sundays".

Jim Stafford, however, said that new insolvency arrangements would allow people who ran up significant debts on things like development land to settle their debts.

Mr Stafford advises clients who owe between €1m and €700m. He said new bankruptcy laws would effectively represent 'debt-forgiveness' for many of them.