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THE INSOLVENCY SERVICE of Ireland, the state body established to oversee insolvency has reported lower than expected results.
The first quarterly report of the ISI shows that just four arrangements have been approved for people in mortgage distress. That is from 320 applications, with the average agreement seeing 19% of the mortgage debt wiped.
Over 500 cases are being dealt with by the service, which has licenced 128 people as Personal Insolvency Practitioners. 51 people received agreements to reduce unsecured debt, such as credit card or credit union debt. The average size of the agreements in these cases is 77%.
There have been 66 bankruptcies in the first quarter of 2014, which is eight more than the whole of 2013.
Commenting on the report, ISI Director Lorcan O’Connor said that the ISI has had a major impact in its first year, is now dealing with over €300 million of debt, and has acted as a “significant catalyst for change” in the area of personal debt.
He accepted that uptake of the schemes was slow, but said that he was confident it would pick up.
“We are working to restore people who are insolvent to solvency in a fair, transparent and equitable way,” he said.
“While the initial uptake of debt relief schemes by debtors has been slow, I am confident that the number of cases in the system will grow steadily into the future.The trends we see are moving in the right direction .We expect a significant number of completed cases by the end of 2014, and a much higher number of bankruptcies than ever before in Ireland.”
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It would have been cheaper to pay off these loans than to set up the insolvency service.
I’d rather try to scrape up the extra few quid to do a UK bankruptcy and be squeaky clean in 1 year,
than be a lab rat/guinea pig for the Irish “let’s make it up as we go along” joke-insolvency legislation.
Friend of mine yesterday sent his house keys back to the bank, moved his wife and kids to the UK where he got a work transfer, going bankrupt there next month, and home again in a year. Ireland the land where the rich can only afford to go broke, and bankruptcy is still a life sentence, even with the changes.
Cost of bankruptcy here is now €760 so it’s hardly for the rich. The time limit is still an issue however and can be up to 5 years which is still to long for many people.
Rhetoric.
Bankruptcy is probably a better, easier option than the insolvency service.
That depends on whether people want to try to hang on to certain assets – it’s individual choice. There is also the issue of fitness and probity in certain professions which may rule out bankruptcy.
Dara it’s costing a friend of mine €3500 to go bankrupt. He lost his house last year and doesn’t earn anything.
Get him to contact the Irish Mortgage Holders Organisation they do it for free
Bankruptcy now costs €650 (Official Assignee) + €210 (Stamping fees) + c€60 for advertising + c€20 for swearing = €940. This is incredibly expensive for someone who by definition is insolvent and has no disposable income. I have seen SVDP pay the €650 in one case.
You can go the self adjudicated route – as far as I’m aware the stamping fees have been reduced to €110 and the advertising requirement is being dropped which will reduce the cost to c. €760
128 signed up P.I.P.S ehh???
They must be planning on a boom in insolvency fees???
Shame on these greedy P.I.P.S who try to usher unknowing distressed families into these farcical expensive, unfit for purpose arrangements, just so that they can make a quick buck.
Vultures.
Let’s look 5 years down the road, when those who opted for UK bankruptcy are free,clear and getting on with their lives and those who went the Irish route are roaming around like unfortunate financial zombies.
What I described is self adjudication. Stamping costs went UP €110 and most advertising costs were removed (you now advertise online on ISI website) except for Iris Oifigiuil which is €64. Which means €650+€210+€64=€924.
As long as Solicitors keep their nice homes. What was it oh yes appropriate to their standing in the community. What a load of sh1te!
The insolvency method is fine in theory but you still need to have a certain amount of money to avail of it. There are many in Ireland with no money at all and they’re left with bankruptcy as their only option. Based on the figures given in this article (66 bankrupt v 4 insolvent) it appears there are far more people not fitting into the shape of the insolvency legislation – over 16 times more people. So you have to ask – is O’Connor the ISI director living in cloud cuckoo land by expecting insolvency rates to pick up ? It’s not going to happen because the majority cannot afford that route.
Not only that ,Tony , but putting a persons name on a register for all to see , doesn’t actually help matters … Even paedophiles names are protected from the public !
Agreed Thomas. It’s like being made to wear a sign around your neck saying “I’m not good enough” and march around the streets with it.
Spot on Lads.
Enda would have us wearing bells around our necks like some kind of financial lepers or perverts, wailing “unclean” as we walk around with serial numbers tattooed on our foreheads as if we were to blame for this travesty,
at the same time he keeps the culprits of the bust in clover at our expense.
It may sound extreme but in essence that’s exactly what he’s doing, the two faced liar.
This echoes of the Magdelanes, clerical abuse and unwanted pregnancies etc,
where the victims were ignored, ridiculed and cast out by the media, government and the church.
Putting someones name on a register somewhat punishes them rightly for making such bad mistakes that contribute to the greed of the boom. It’s the least they deserve.
Hey welcome back Dave!!!
I’d thought you’d be busy looking for a repo today?
“Did you miss the boat (again)”?
Haha, the only boat I missed was the boat of misery caused by the debt you and your generation all got yourselves into, Now I get to laugh at your misery HAHA
Your views are so short sighted Dave.
Dave has many silly accounts on here , this one just happens to be the nastiest one ;)
I assure you I only have one account. You just don’t realize how many people hate the boom time fools who are all now in debt and struggling to find hope in their miserable lives.
And you assure us that you have €110,000 as a deposit ..You cashed in shares ..You work in a top ten hi-tech company in Ireland .You sometimes work in America and sometimes in Switzerland :) What’s not to believe about you ? ;)
Believe what you want. Think what you want.
Just to stop your prattling, you do realise that if you go bankrupt in the UK, your name is on the register for 10 years and it costs £665 so it’s not any different apart from the time element.
Your comment about wearing your bankruptcy is, therefore, null and void apart from the fact that the register is in the uk and not Ireland.
You really should wait for 12 months and see if any of the domestic bankrupts are discharged early before you carry on with your empty rhetoric.
Worrying times for the PIP’s (not)……those same fella’s – who’d buy & sell their Grannies! One day requisition’s the next day acquisition’s.
Bankruptcy is the better option in the long run
Agree ,Bear …
*Beer :)
Since day one this racket has been setup to fill the pockets of some that previously lost earnings through the fall of the house/property/land market.
A scheme had to be invented to replace a revenue stream that dies up as houses were no longer selling in such large numbers – and guess what, FG and Labour facilitated this.
Are many surprised? No.
After all this is a government that includes Noonan, a bondholder who while holding top position in a finance dept, also helps make decisions to pay bondholders we were NOT legally obliged to pay – so he wins there too!
(Can anyone say “Conflict of interest” given the office he holds in relation to be being a bondholder? SHUSH – your not meant to kop on to that fact or speak about it. The government don’t like it being publicised)
So again we have another racket that fills the pockets of those that are in the middle, so that others can gain more so and so the very broke can even yearly by further charge be forced to once again find money just to hand over to others….
This government, the present parties like the previous one’s elected, make me sick!
To just apply for going on these schemes you need to find well over a grand in most cases – €600 minimum to apply (and these charges apply YEARLY to stay within scheme for up to five years), the exposed numbers prove further what we have been saying BEFORE this scam started – that it is a scam and the only people that are the real winners is the PIPS and paper shufflers.
Saying they are “dealing with over €300 million of debt” don’t amount to squat if they then are not actually doing anything to solve the problem.
Four out of 320 deals completed? That’s absolutely scandalous. There should be a complete INDEPENDENT investigation of this government invented and promoted racket – but there won’t be – they won’t allow that to happen. Especially with local and general elections coming soon – but not quick enough!
One PIP man in Louth was a milkman for crying out loud – he knew a good thing when he saw it and fair play to him he went for it. Who did he get to sell it to the people for him locally? A Labour TD who is on record as getting over €1,000 A WEEK in expense perks alone on top of his high wages, again per week.
The ironic part is that the PIPs sometimes say they are trying to help those that are broke!
…Then the PIPs inform them of what they have to pay up front (for every year on scheme also) in order to get MAYBE help.
In other words, your completely broke – we ill help – now cough up!
Scam – scam – scam…
I pity these people who have gotten themselves into debt and I hope their suffering ends soon.
NOT!
Hahaha
Did you hear your man on the Sean O’Rourke show this morning ? Straight away, I thought of you ;) Sale agreed on house €425,000 and then the vendor puts it off the market :( 2 months later , back on the bloody market *sigh* €490,000 :( Actually thought the days of gazumping was over :( Imagine if you were shrewd enough , let’s say , 1 year back , could have made big bucks :( Once a loser always a loser , Davey boy ;)
Haha I love the way you really have no idea who I am. It’s very entertaining. haha
You’re delusional ,even you don’t know ,who the real you is !
Dave , if you have only one account ,then you’re ,Dave ;)
Whatever. Some of us have to work here so quit trolling loser.
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