Monday 23 October 2017

Debt actions on the rise as borrowers feel heat

Dearbhail McDonald Legal Editor

DEBT cases continue to rise in the courts as companies and borrowers struggle with the effects of the ongoing financial crisis.

Debtors are also having more private debts converted into judgments against their homes, allowing banks, credit card companies and others to place a charge over homes in the event of a sale.

But fewer borrowers are being sent to jail for non-payment of debts following a change in the law. Just 1,015 people were committed to jail last year -- down 63pc on 2010.

Last year there were 305 applications to wind up companies, a 12pc increase on 2010, according to the annual report of the Courts Service.

There were 33 fresh bankruptcies last year, a 13pc increase on 2010, more than treble the 2009 figure.

Those figures are set to rise with Government plans to overhaul Ireland's outdated personal insolvency regime.

Personal injury actions are on the rise, with more than 16,000 actions being dealt with.

Irish Independent

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