Category Archives: ISI

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 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.

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).

Insolvency Service of Ireland Website

The Insolvency Service of Ireland is planning to fully launch it’s website in April. The ISI  full publicity campaign launch was  scheduled for the week of  8th of April 2013. That has now been delayed until “mid April”

During April ISI plan to publish  guides to the three new arrangements: Debt Relief Notices (DRN), Debt Settlement Arrangements (DSA) and Personal Insolvency Arrangements (PIA).

The  Insolvency Service of Ireland website will contain various scenarios as to how the new arrangements may work in practice.

The ISI will also publish  Guidelines on Reasonable Standard of Living and Reasonable Living Expenses for debtors.

During that week they will also publish  information about the Regulations for the authorisation and licensing of Personal Insolvency Practitioners (PIP).

The website will be  www.isi.gov.ie

Insolvency Judges to be paid €140,000

A  new group of “specialist judges” will be appointed to deal with all the insolvency actions due to come before the courts.These  specialist judges will receive the same salaries as newly appointed Circuit Court judges, will be regarded as full judges and must be addressed in court as “judge”.

The Judges will be chosen from   county registrars who will have to apply for the €140,623-a-year roles .

County registrars perform a number of quasi-judicial functions –  for example holding motions courts and case progression hearings, conducting arbitrations under the Landlord and Tenant (Ground Rents) Acts and the taxation of costs.  In addition, the county registrar has responsibility for the administration and management of the circuit court offices in each county.

Jobs at The Insolvency Service of Ireland

Alan Shatter T.D, Minister for Justice, Equality and Defence, has announced the commencement of  recruitment of some  of the specialist staff required by  the Insolvency Service of Ireland (ISI).

U up to 80 staff, including some specialist staff, may be required initially  for the Service itself. It is expected that they will be mainly sourced through redeployment from other areas within the public service.

Arrangements are also being made for the transfer of the functions, in regard to the administration of bankruptcy currently carried out by the Courts Service to the new Insolvency Service.

A number of specialist staff will be required, on either short and long-term contracts. To start this process, and to ensure that the Service will be in a position to discharge its functions early in 2013, the Government has agreed that a recruitment process for a number of accountants and an in-house solicitor, should commence immediately.

Where suitable staff cannot be sourced from redeployment from across the public sector, they will be recruited through an open process organised by the Public Appointments Service.

Considerable emphasis is being placed on developing the Information and Communications Technology aspects of the new Service, with priority attention being devoted to the design and development of the necessary case management, financial management and management information systems. The process of identifying and securing an appropriate office premises for the new Service is also underway.

Minister Shatter said ““I am keen that the new Insolvency Service will be in a position to open for business as soon as possible after the necessary legislation is passed by the Oireachtas. This approval by Government of the staffing resources necessary is a key step and I look forward to speedy progress over the coming months.”