Tuesday 25 October 2016

Rise in number of those doing debt deals through courts - new figures

Published 15/07/2015 | 10:03

Lorcan O'Connor, Insolvency Service Ireland Director
Lorcan O'Connor, Insolvency Service Ireland Director

NEW figures show a rise in the numbers of over-borrowed people doing formal debt deals through the courts, but the totals has been dismissed as inadequate.

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The Insolvency Service of Ireland said this morning that 150 personal insolvency arrangements (PIAs) were put in place in the three months up to June. PIAs are deals for those with mortgage debts.

It said this, and greater numbers of other debt deals, showed the momentum continues to grow for the service.

However, the statistics show a slow-down in the numbers seeking to be declared bankrupt. Experts said this was likely to be because there has been debate about reducing the bankruptcy term from three to one year.

The Insolvency Service, which is headed by Lorcan O’Connor, said: “The report shows continued growth, month on month, in activity across all alternative solutions to bankruptcy.”

But the Irish Mortgage Holders Organisation said that since its launch in 2013 the Insolvency Service has arranged 500 PIAs, which it said equates to just 0.0036pc of the total numbers of property accounts in arrears.

David Hall of the IMHO said: “It is most concerning that this pathetic level of activity and growth is described by the insolvency service as ‘momentum’ when in actual fact it’s an embarrassment given the tens of thousands of people crippled with unsustainable debt who need help.”

He said there were around 30,000 families more than two years in arrears on their residential mortgages.

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