Fall in bankruptcy numbers, rise in other debt options
THERE has been a surprise fall in the number of people being adjudicated bankrupt.
This is despite the bankruptcy term falling from three years to one year from January 29 last.
The Insolvency Service said there was a rise in other debt options, which people may have opted for instead of seeking to be declared bankrupt.
In the first three months of this year a total of 111 people were declared bankrupt.
This was down from 162 in the same three-month period last year, and a decease on the 142 who were adjudicated bankrupt in the final three months of last year.
The fall in bankruptcy numbers comes as there was a 26pc surge in new applications for personal insolvency applications (PIAs), the solution designed to keep people in their family home.
Changes in the law mean that homeowners that have had a PIA voted down by their bank can now appeal this to the courts.
Director of the Insolvency Service Lorcan O’Connor said: “The 26pc growth in PIA applications is likely due to the newly introduced Court Review process, sometimes referred to as the removal of the ‘bank veto’.”
Mr O’Connor 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.