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30% Increase In New Applications for Debt Write off Deals

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30% Increase In New Applications for Debt Write off Deals

The Insolvency Service of Ireland released the debt help statistics for the second quarter of 2016 on 29th of July 2016. The ISI was set up at the end of 2013 to help Irish people deal with personal debt problems.

 

The report released by the Insolvency Service of Ireland shows a 30% increase in new applications received for debt solutions in the second quarter of 2016.  735 new debt settlement applications were received and the total debt involved in the 735 new cases was approximately €475 million.

 

334 debt write off deals were approved in the second quarter of 2016, that’s a 10% increase on the number of debt write off deal approved in the previous quarter.

 

The Insolvency Service of Ireland also mentioned in their report that in 74% of  the debt settlement cases it has dealt with since 2013, there was a successful outcome where the borrower returned to solvency.

 

Here is the breakdown of the different debt solutions approved in the 2nd quarter:

 

92 Debt Relief Notices

66 Debt Settlement Arrangements

176 Personal Insolvency Arrangements

 

 

A Debt Relief Notice 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. 

 

A Debt Settlement Arrangement is a formal agreement where a percentage of the debt is paid and creditors agree to write off any outstanding debt. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years. If you 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. (Insolvent means you are unable to pay your debts in full and when they fall due).

 

A Personal Insolvency Arrangement is a debt settlement solution that covers secured and unsecured debt, this is the insolvency arrangement for mortgage holders who are seeking a debt solution to help them restructure their mortgages, bank/credit union loans, overdrafts and credit cards. This solution is similar to a Debt Settlement Arrangement, its a formal agreement where a percentage of the debt is paid and creditors agree to write off any outstanding debt.

 

Debt problems can cause a lot of worry, stress and sleepless nights but thank god there are now solutions available to get you out of debt so you can start over again.

 

Gone is the time when you need to hide your debt problems and there is no shame attached to being in debt anymore as it can happen to anyone.

 

Most people who contact us have experienced a change in their circumstances, everything was fine and then out of the blue their hours are cut at work or they are made redundant.

 

There are lots of reasons why people start to struggle with debt and now there are lots of solutions available. The debt settlement solutions now available could make your credit card, bank loans and mortgage payments more affordable if you are unable to pay your debts as they fall due. You may be eligible to have up to 70% of your debt to be written off also.

 

The great thing about these new debt settlement solutions is that there is an end date. A Debt Settlement Arrangement will last up to 5 – 6 years and a Personal Insolvency Arrangement could last up 6 – 7 years. These are formal arrangements recognised by the court and the Insolvency Service of Ireland so they will give you legal protection from your creditors.

 

There are now 136 authorised Personal Insolvency Practitioners in Ireland who can help anyone struggling with unmanageable debt.  A Personal Insolvency Practitioner is a trained debt advice professional who will be able to see if you are eligible for a solution to reduce your payments and have a percentage of your debt written off.

 

The Personal Insolvency Practitioner will be able to sit down with the person struggling with debt to see if they are eligible for a Debt Settlement Arrangement (DSA) or a Personal Insolvency Arrangement (PIA). If the indebted person is eligible for a DSA or PIA then their Personal Insolvency Practitioner (PIP) will negotiate the debt settlement deal on their behalf.

 

The other good news is that there is a new Government scheme aimed at giving free advice to home owners struggling to pay their mortgage.

 

This new State funded Scheme of Aid and Advice for Borrowers in Home Mortgage Arrears enables borrowers with mortgage arrears to meet a Personal Insolvency Practitioner for free advice.

 

If you are insolvent and in arrears on your home mortgage you could be eligible for a FREE consultation with a Personal Insolvency Practitioner.  This is available as part of a new State-funded Scheme to help distressed mortgage holders

 

The Insolvency Service of Ireland said the new scheme should ensure that everyone experiencing financial difficulty should get the help they need.

 

The Personal Insolvency Practitioners we work with are part of this scheme and can also offer free advice to anyone worried about debt problems.

 

If you are struggling to pay to your credit cards, loans or mortgage please don’t worry as there is now help available.  We can arrange a Free appointment for you with a Personal Insolvency Practitioner who will able to see if you are eligible for a debt solution.

 

Click on the arrange a call back button below or phone us on 01 4434125 to receive Free Debt Advice Today. 

 

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R.McGonnell 24th August 2016

 

 

 

 

 

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