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25% Increase In Debt Write Off Solutions

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25% Increase In Debt Write Off Solutions

Increase in debt write off solutions reported by The Insolvency Service of Ireland.

 

The report released by the Insolvency Service of Ireland for the first quarter of 2016 shows an increase of 26% in the application for Personal Insolvency Arrangements and a continued growth in approved arrangements.

 

The total debt involved in the new cases created in the first quarter is approximately €303 million.

 

411 debt write off arrangements were put in place in the first quarter of 2016 and here is the breakdown:

169 Personal Insolvency Arrangements

60 Debt Settlement Arrangements

71 Debt Relief Notices

111 Bankruptcies

 

Compared to the first quarter of 2015 the figures above show a 25% increase approximately in Personal Insolvency Arrangements, Debt Settlement Arrangements and Debt Relief Notices.

 

In the first quarter of 2016, 67% of Personal Insolvency Arrangements and 78% of Debt Settlement Arrangements were approved by creditors.

 

The number of people going Bankrupt is lower than the last quarter, it maybe the case that more people are opting for the other insolvency solutions instead.

 

Also the introduction of a Court Review option for Personal Insolvency Arrangement proposals that are rejected by creditors should hopefully show an increase Personal Insolvency Arrangements going forward. A Personal Insolvency Practitioner can now make an application to Court on the debtor’s behalf if a creditor rejects their Personal Insolvency Arrangement. A Court may impose a rejected Personal Insolvency Arrangement proposal on creditors.

 

Key statistics since the Insolvency Service of Ireland opened:

 

They have helped deal with debt of almost €5 billion and helped over 3000 people working alongside Personal Insolvency Practitioners, MABS companies and the Irish Mortgage Holders Association.

 

The following debt write off solutions have been put in place since the Insolvency Service of Ireland opened their doors:

1,009 Personal Insolvency Arrangements

379 Debt Settlement Arrangements

669 Debt Relief Notices

1,096 Bankruptcies

 

Here is more information on the debt write off solutions mentioned above, you maybe be eligible for one of these solutions below if you are struggling with unmanageable debt.

 

Personal Insolvency Arrangement

Formal agreement that includes secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. This debt solution was brought in by the Government to help people deal with unaffordable secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts)

 

Debt Settlement Arrangement
Formal agreement where a percentage of the debt is paid and the creditors agree to write off any debt outstanding. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years. If you owe more than €20,000 and have unsecured debt such as credit cards, loans and overdrafts and are insolvent then a Debt Settlement Arrangement could be the right solution to help your clear your debts.

 

Debt Relief Notice 

Formal agreement that gives debt relief to people who have little or no disposable income or assets which they could use to repay what they owe. This is a debt settlement solution to clear less than €35,000 of debt. It enables eligible insolvent debtors to write off their debts where they can prove they are not in a position to repay their debt and it is unlikely their financial situation will improve in the next 3 years.

 

Bankruptcy 

A high court process to clear all your debts if you have little or no money available to repay your creditors. Before you consider applying for bankruptcy you must have explored the alternative solutions to bankruptcy which includes a Debt Settlement Arrangement, Personal Insolvency Arrangement and Debt Relief Notice. Unsecured and secured debt such as mortgages for family homes or buy to let properties, business loans and credit card loans can be included in bankruptcy.

 

It’s fantastic to see that the Personal Insolvency Act is now working and that lots of people who were burdened with debt are now finally getting the help that they need and can now see a light at the end of the tunnel.

 

If you are finding it difficult to make the repayments to your loans, credit card debt or mortgage then you should speak to a trained Debt Advisor or Personal Insolvency Practitioner today.

 

If you would like Free Debt Advice then let us arrange a FREE appointment for you with a Debt Advisor or Personal Insolvency Practitioner who will be happy to see if you are eligible to have your debts written off.  



R.McGonnell 5th July 2016

 

 

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