Irish Bankruptcy Statistics 2017

There were 243 Bankruptcy adjudication in Ireland during the first 6 months of 2017.  In 2016 there were 526 , in 2015 479 and 448 in 2014.

That is a total of  1696  Bankruptcies since 2014.

The county with the highest rate of bankcruptcy since 2014 is Kildare  – with 7.68 per 10,000 adults. ( Total of 124)

The county with the second highest rate of bankcruptcy is Monaghan – with 7.6 per 10,000 adults. ( Total of 34)

Wicklow is in third place with 7.1 bankrupcies per 10,000 adults – a total of 74.

The county with the lowest rate of bankcruptcy is Kerry – with 2.8 per 10,000 – a total of 32 since 2014.


Bankruptcy is a process where the ownership of an insolvent person’s property transfers to the Official Assignee in Bankruptcy to be sold by him for the benefit of those to whom the individual owes debts (creditors).
Bankruptcy proceedings are brought in the High Court. The application for a Bankruptcy Order is filed in the Office of the Examiner of the High Court.  When the person’s property is sold, the Official Assignee will make sure that the proceeds are shared out fairly among creditors and any outstanding debt will be written off.
Bankruptcy normally lasts for 1 year.

MAIN CONSEQUENCES OF BANKRUPTCY

Your property transfers to the Official Assignee.
You have a duty to contribute from surplus income (income less reasonable living expenses) towards your debts for up to 3 years.
You are discharged from bankruptcy after 1 year.
All your unsecured debts are written off.

 

Insolvency Statistics Ireland 2016

Since the Insolvency Service was launched in 2013 there have been just 6800 applications for  debt relief. Made up of about 1000 DRNs  and 5000 PIAs and the rest were DSAs

Of those applications –  24.5% were from unemployed people and  63.7% were from working people. The rest were from students/ retired or housewife/househusband.

Male applicants made up 52.3% and female made up 47.7%.

The highest rate of Insolvency applications were from Co Waterford (32.6 per 10,000 adults). In second place was Co Wicklow at 21.8 per 10,000 adults.

The county with the lowest application rate was  Limerick at 5.9 per 10,000 adults.

Co Kildare had the highest rate  of Bankcruptcy applications – 7.5 per 10,000 adults – whilst Kerry had the lowest (2.2 per 10k)


A DEBT RELIEF NOTICE (DRN) PROVIDES FOR THE WRITE-OFF OF QUALIFYING DEBT UP TO €35,000 SUBJECT TO A 3 – YEAR  SUPERVISION PERIOD.

A DEBT SETTLEMENT  ARRANGEMENT (DSA) PROVIDES FOR THE AGREED SETTLEMENT OF UNSECURED DEBT WITH NO LIMITS INVOLVED OVER A PERIOD OF UP TO  5 YEARS.

A PERSONAL INSOLVENCY ARRANGEMENT (PIA)  PROVIDES FOR  THE RESTRUCTURING OR SETTLEMENT  OF SECURED DEBT
UP TO €3M AND THE SETTLEMENT OF UNSECURED DEBT OVER A PERIOD OF UP TO 6 YEARS

Examples of Debt Write Off in Ireland

The Insolvency Service of Ireland has released some useful real life examples of debt write off  – and the figures might surprise some people.
Debt Settlement Arrangement
One example was of a a female aged 37, married, employed on a part
time basis, with one child in preschool and
another in primary school .
In this case she  had debts of  €31,534 (unsecured bank loans and credit card debts) . She had assets of  a car worth €500 and €348 cash in the bank . Her monthly net income was €1209 and her “reasonable living expenses” came to  €1980 when rent costs were included.  This meant her income was €771 a month below her assessed needs.  (before any debt repayments)
In cases of debts over €30k  – the applicant would typically be just considered for bankruptcy. However she was able to get a lump sum of €9,500 from a relative to make available to her creditors
and to cover her PIP’s fee.   This payment was split between the creditors and  77% of the debtor’s debt was written off. (€24000).

Insolvency Service 2015 Q1 Statistics

The Insolvency Service of Ireland published some performance figures for the  first quarter of 2015

There were just over 400 “debt solution”s in Q1 (101 DRNs , 43 DSAs, 129 PIAs and 162 bankruptcies)

The totals of the various “solutions” since the start of the ISI are :

996 Protective Certificates issued

821   Approved Arrangements

Overall there were just 2013 applications for “debt solutions” since the start of the service.

Insolvency Application Fees Suspended until 2016

. In order to remove any perceived barrier to seeking help, the Insolvency Service of Ireland (ISI) SI has suspended all application fees for debt solutions until the end of 2015. Previously, these fees were €100 for a DRN, €250 for a DSA and €500 for a PIA.

“Application fees were raised by some people as a potential barrier,” said Lorcan O’Connor, “so we have removed them. We have tried to remove as many obstacles as we possibly can. While the majority of Personal Insolvency Practitioners (PIPs) charge a consultation fee, in almost all cases this is in the region of €100-€300 and some may not charge an initial fee at all. When a PIP takes on your case, you get protection from your creditors, you may have more to spend at the end of each week on food and day-to-day expenses, and you will be on a path to a fresh start.”

 

The ISI’s information campaign, ‘Back on Track’, will feature a new user-friendly website www.backontrack.ie, with videos and personal stories from people who have gone through the insolvency process successfully. Print and radio ads will run in regional and national media, starting this week. Guides to the three debt solutions have been revised and simplified, and the ISI will host a series of townhall meetings with community leaders in seventeen venues around the country.

Insolvency Service – Some Statistics

How Many People are Using the Insolvency service of Ireland?

The ISI began accepting applications from the public back in Sept 2013 – but the numbers of debt solutions approved so far seem very small.

Figures as at  31 March 2014

Only 55 Debt Solution Arrangements have been approved – made up of 44 Debt Relief Notices, 7 Debt Settlement Arrangements and 4 Personal Insolvency Arrangements.

There were  523 cases in progress – (320 PIAs, 121 DSAs and 82 DRNs).
The total debt involved in these cases  is approximately €193 million.

Just  70 Protective Certificates were  issued by the Courts. (Protective Certificates give protection to debtors against legal action by creditors for a period and allows a Personal Insolvency Practitioner 70 days in which to develop an arrangement).

There were  66 bankruptcies in the first Quarter of 2014. (Total of 76 since the rules were changed_

The ISI say they have received almost 11,000 telephone calls to its information line and 2,500 email enquiries.

 

ISI Accepting Applications for Insolvency from Sept 9th

The Insolvency Service of Ireland (ISI) announced that it will start accepting applications on Monday the 9th of September.
from authorised Personal Insolvency Practitioners and Approved Intermediaries for the new debt reliefs on behalf of insolvent debtors under the Personal Insolvency Act.

 Debt Relief Notices and Protective Certificates

The ISI will begin accepting applications for Debt Relief Notices and Protective Certificates linked to applications for Debt Settlement Arrangements and Personal Insolvency Arrangements from Monday 9th September.

In advance of this date, insolvent debtors can arrange to meet with duly authorised Personal Insolvency Practitioners or Approved Intermediaries to discuss their situation.

 

Get Your Debts Written Off in Ireland

It will soon be possible , under new Personal Insolvency Legislation , to get certain debts of up to €20,000 completely written off in Ireland. From September – people can apply for a Debt Relief Notice  (DRN) and be debt free after 3 years.

Who is Eligible?

Debt Amounts – only debts of less than €20,000 can be covered by a Debt Relief Notice (DRN). If you have bigger debts you need to look into a Debt Settlement Arrangement.

Types of Debts – Debts that can be written off under a DRN  include ; Credit Card Debts, Store Card Debt,  Overdrafts ,  Personal Loans , Credit Union Loans , Utility bills . (All unsecured) .Mortgage debts and other secured debts  are not covered by DRNs

The following type of  Debts can be included in a DRN but only if the creditor agrees:  Taxes, duties, levies  payable to the State ;  Local government charges/rates/household charges  ;  Amounts due to the HSE under the Nursing Home Support Scheme ; Service charges to owner’s management companies  ; Social Welfare Overpayments

Note – Applicants  must not have incurred 25% or more of these debts during the past 6 months

Assets: You are not eligible for a DRN  if you own assets (including property) valued at more than  €400. So homeowners are not eligible for this type of debt relief.

But – these  assets  are not counted :
1 item of jewellery worth  €750 or less
1  motor vehicle worth  €2000 or less
Reasonably necessary household furniture/tools worth less than €6,000

Income Levels– Your monthly Disposable Income needs to be below specified guidelines  – which depend on the size of your household. Disposable Income is defined as Gross Income less :-
Income tax,
Social insurance contributions (PRSI/USC) ,
Reasonable Rent Payments ,
Payments of debts that are excluded from the DRN.

These are some examples of the maximum Income levels for different households that would allow them to be eligible  for a DRN: (This is after payment of Rent)

Single Adult  €1089
Single Parent  + 1 Primary school Aged Child  €1461
Single Parent  + 1 Infant + 1 Preschool Child  €1694
Couple + 1 Primary School aged child €1727
Couple + Primary Child + Secondary Child  €2236
Couple +  2 Secondary School Children  €2439
Couple + 3 Secondary School Children €2949

These amounts are calculated from the ISI reasonable living expenses guidelines for households with a car ( plus the €60 DRN “allowance”) Note : We have included Child Benefit as income because we haven’t reduced the reasonable living expenses to take account of Child Benefit

SO – using an example listed above
A couple with 2 secondary school children who are renting a house for €800 a month would be eligible for a DRN if their net income was less than €2439 + €800  = €3239 a month.
Take out the €260 child benefit – leaving €2979  a  month.
A take home pay of €2979 a month equates to roughly €43000 annual  gross income for a single earner couple.

If this couple have debts of under €20000 they could get  them all written off  in 3 years. (As long as their assets are no more than  €400 plus 1 item of jewellery worth  €750 or less plus 1  motor vehicle worth  €2000 or less , plus household furniture/tools worth less than €6,000)

If someone on a DRN has an increase in  monthly net income of €400 or more; or they  receive a gift or sum of money of €500 or more –  they have to give  50% to the ISI for the benefit of their creditors.

Once a Debt Relief Notuce is issued it lasts for 3 years – none  of the creditors listed in the DRN can  can pursue you for the debts you owe them that are specified in the DRN. At the end of the 3 year period, all debts listed in the DRN will be written off in full.

Authorised Personal Insolvency Practitioners

The first batch of Personal Insolvency Practitioners (PIPs) have been approved by the Insolvency Service of Ireland (ISI).
Anyone who intends to apply for  a Debt Settlement Arrangement or  a Personal InsolvencyArrangement will have to apply through one of these authorised PIPs .

There are currently just nine on the list of approved PIPs – with 4 of them in Tipperary. Apparently about  100 individuals have applied for approval to become PIPs.

The ISI is preparing for thousands of applications for debt relief, with estimated government figures suggesting that there will be 15,000 applications for debt settlement arrangements (DSAs) and personal insolvency arrangements (PIAs) in the first year of the new insolvency regime. About 3,000 to 4,000 applications for debt relief notices (DRNs) are also expected.

Approved PIPs Aug 12th 2013


County
Name Address Telephone
Co
Clare
Mr.
John Hogan
4 Abbey Street
, Ennis
065
682 4894
Dublin 2 Mr Jim Stafford 44 Fitzwilliam
Place
01 661 4066
Dublin 2 Mr Michael
McAteer
24-26 City
Quay
01 6805 805
Dublin
2
Mr.
Alan Geraghty
44
Fitzwilliam Place

01
661 4066
Dublin 2 Mr Tom Murray 44 Fitzwilliam
Place
01 661 4066
Co Limerick Mr Robert
Gloster
2 Cecil Street
, Limerick
086 804 5655
Co
Louth
Mr.
John Donnan
Mill
House Mill Street

Dundalk

042
932 6400
Co Meath Ms Tara Cheevers The Steeple
Buildings

High Street , Trim

046 943 8461
Co
Meath
Mr.
Barry Forrest
3C
Dunshaughlin Business Centre

Dunshaughlin

01
802 4217
Co
Tipperary
Ms
Marie Lane
Unit
6 Crann Ard

Fethard Road , Clonmel

052
618 4496
Co Tipperary Ms Frances
O’Hanlon
Unit 6 Crann
Ard

Fethard Road , Clonmel

052 618 4496
Co Tipperary Mr John Lynch Jervis House

Parnell Street , Clonmel

052 612 4344
Co Tipperary Mr John O’Connor Unit 6 Crann
Ard

Fethard Road, Clonmel

052 618 4496
Co Waterford Mr Mitchell
O’Brien
Garraunfadda

Dungarvan

Co Waterford

058 23511

Irish Insolvency Service Soon Open for Business

This week the the director of The  Insolvency Service of Ireland (ISI) ,  Lorcan O’Connor , updated the Oireachtas Joint Committee on Finance, Public Expenditure and Reform on the latest ISI progress and  targets.

He told them that he expects the ISI to be in a position to accept applications from the public in mid-August, ( five months after the establishment of the service).

Applications to become   Personal Insolvency Practitioners (PIPs) and Approved Intermediaries (AIs)  are already being processed and they will be authorising some  by the end of July. People will then be able to meet authorised practitioners straight away.

The Insolvency Service’s  IT system is still not  fully operational.  By the  19th July  complete end-to-end testing of  IT systems is due to start  and will involve involving MABS, potential PIPs and the Courts Service.

There are still some provisions of the Personal Insolvency Act that have not being signed into Law .

The ISI  expect that the first Debt Relief Notices (DRN) will  not be issued until early September 2013 . It will be Septyember too before the first Protective Certificates will be issued ( These will cover people applying for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA).