25/04/2014

25/04/2014

Insolvency Service Of Ireland (ISI) – Statistics Q1 2014

The ISI was established following the enactment of the Personal Insolvency Act, 2012 and it has just published its statistics to Quarter 1 of 2014. Detailed below are a few of the key points.

1) In the past 7 months 600 individuals (520 cases) have commenced personal insolvency arrangements.

2) The Courts have issued 70 protective certificates to debtors.  A protective certificate remains in force for 70 days while the PIP (a Personal Insolvency Practitioner) seeks to put an arrangement in place with creditors.

3) 55 Arrangements have been approved - 44 Debt Relief Notices (DRN), 7 Debt Settlement Arrangements (DSA) and 4 Personal Insolvency Arrangements (PIA).

4) The total debt involved in the 520 cases is €193m.

- €87.4m -- personal home mortgages - €69.2m -- financial institutions - €15.4m -- trade suppliers - €4.5m -- Credit Unions - €3.8m -- Contingent debt - €3.6m -- Revenue debt - €8.8m -- Other debt

5) The average debt write off on Arrangements approved.

- 19% re secured debt under PIAs (ranging from 0% to 39%) - 93% re unsecured debt under PIAs (ranging from 91% to 95%) - 77% re unsecured debt under DSAs (ranging from 37% to 95%)

6) The number of bankruptcies are 66 in Q1 of 2014 compared to 58 for all of 2013.

The numbers are interesting in that it demonstrates that significant debt reduction can be achieved availing of the new legislation.  As time progresses, these arrangements will continue to increase and hopefully assist borrowers to deal with their debts.

What questions do you have?

We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: pleonard@cooneycarey.ie

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