The number of people using the Insolvency Service of Ireland has increased dramatically in recent months while the number of banks blocking debt settlement deals appears to be falling.
According to new figures released by the agency the number of Personal Insolvency Arrangements dealing with debts including mortgage debt approved in the last three months of 2014 increased by 148 per cent over the three preceding months and exceeded the previous three quarters combined.
Protective Certificates are the first stage in the insolvency process and the number of such certs issued in between October and the end of December increased by 50 per cent the previous quarter.
The vast majority of Protective Certificates issued are now for Personal Insolvency Arrangements with 80 per cent of the certs issued involving mortgage debt.
The ISI said that 75 per cent of proposals supported by creditors put forward by intermediaries on behalf of distressed borrowers are being accepted by banks. While that number is up on the last set of figures released by the ISI it is still some way of the acceptance rates in the UK which are in excess of 95 per cent.
The ISI is now dealing with debt of almost €1.5 billion ad it attributed the “strong growth in activity” to an announcement in October of ISI application fees waivers and launch of ‘Back on Track’ information campaign.
There has been a significant reduction in the application costs for bankruptcy. The total cost of applying for bankruptcy is now approximately €270 down from €1,400 in 2013.
There were almost 1,000 cases dealt with by the ISI last year.
“The number of people availing of the debt solutions available through the ISI is increasing every month and the trend is continuing to move in the right direction,” said ISI Director Lorcan O’Connor.
“ Our new ‘Back on Track’ information campaign, which launched in October with a new website, the elimination of application fees and a set of simplified information materials has clearly helped people to understand that help is available for anyone with unsustainable debt.”
He encouraged anyone with serious debt issues to consult a Personal Insolvency Practitioner or an Approved Intermediary, details of which are available on www.backontrack.ie or by calling 076 106 4200.
