Investigations into bankruptcy cases netted more than €6 million of so-called hidden assets last year.
Official assignees in cases run by the Insolvency Service of Ireland (ISI) carried out 185 investigations around bankruptcies, according to the ISI’s 2022 annual report.
During bankruptcy proceedings a person’s assets are transferred to the official assignee. The official assignee then sells those assets to cover the bankrupt’s debts.
The report states that “in many instances investigations have resulted in the identification of undisclosed assets such as bank accounts, cars, properties, rental income, and transfers of assets prior to bankruptcy and these investigations resulted in realisations of in excess of €6 million in 2022″.
The “in excess of €6 million” realised from “hidden assets” last year is twice the “in excess of €3 million” in undeclared assets realised in OA bankruptcy investigations undertaken in 2021.
Last year, assets with a value of €11.4 million were realised in 412 bankruptcy estates, with the €11.4 million including €7.15 million in proceeds of land and buildings.
The report states: “The integrity of the system depends on bankrupts making full disclosure and co-operating with the OA.”
The report warns that “this OA will continue his policy to vigorously pursue the recovery of assets not declared”.
The report states that in bankruptcies, dividends with a cumulative total of about €1.45 million were paid out to 188 creditors in 50 cases by year-end.
Overall 105 people were adjudicated bankrupt last year, down sharply on the 199 people in 2021.
The number of adjudicated bankrupts has declined from 473 in 2017. A further 189 people exited bankruptcy last year.
In his report, ISI director Michael McNaughton said: “While media reports have focused on individuals with very large debt positions, our statistics show that the vast majority of people who avail of our solutions have relatively modest levels of unsustainable debt.”
In addition to the 105 bankruptcies last year, the ISI approved 1,076 insolvency arrangements last year compared with 1,193 in 2021.
The report states that the decline in total protective certificate and arrangements from 2019 has continued through 2021 and 2022, albeit at a much slower rate.
The report states that there is “a clear inclination towards great levels of acceptance by creditors to proposals at creditors’ meetings” rising from 50.66 per cent in 2018 to 61 per cent in 2021.
Fifty-eight per cent of creditors last year objected to protective certificate applications for debtors, compared with 67 per cent in 2021.
