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Almost 1700 Debt Solutions Agreed in 2015

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Almost 1700 Debt Solutions Agreed in 2015

According to the Insolvency Service of Ireland statistics for 2015 there was a 70% increase in debt solutions agreed for that year.  The report also shows that 1687 people had debt settlement solutions agreed in 2015.

 

These solutions usually involve the write down of credit cards, loans and mortgages where a person is unable to pay their debts as they fall due.

 

There are four debt solutions now available to help anyone struggling with debt:

 

A Debt Settlement Arrangement is a solution for unsecured debts, such as credit cards, bank/credit union loans and overdrafts. This solution features write-down and write-off of debts that cannot be repaid. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

 

A Personal Insolvency Arrangement is a similar solution to the Debt Settlement Arrangement but it also includes mortgage debt and secured loans and, where possible, allows a debtor to keep their home. It can be applied for through a Personal Insolvency Practitioner, professionals based around the country that are regulated by the Insolvency Service of Ireland

 

A Debt Relief Notice is a solution for people with low income, no mortgage and very few assets. This solution allows for complete write off of debts up to €35,000 and can be applied for through an approved Intermediary, your local MABS office maybe an approved Intermediary.

 

Bankruptcy is a solution for people for which the alternatives above are not suitable. The bankruptcy term has been reduced from 3 years to 1 year.

 

Key statistics for 2015 include the following:

Personal Insolvency Arrangements (PIAs) continue to be the most popular solution and the applications for debt solutions increased by 18% in the 3rd quarter.

 

There was almost 1700 permanent debt settlement solutions agreed for debtors and here is the breakdown:

 

641 Personal Insolvency Arrangements

221 Debt Settlement Arrangements

346 Debt Relief Notices

479 Bankruptcies

 

The Insolvency Service of Ireland was set up to help tackle debt problems in Ireland and since the introduction of the new debt solutions and the reform of bankruptcy more formal arrangements are being reached by borrowers and their lenders with the help of a Personal Insolvency Practitioner.

 

All of these debt solutions are overseen by the Insolvency Service of Ireland and they became available when the Personal Insolvency legislation changed at the end of 2012. These solutions are designed to help any insolvent people struggling with unmanageable debt and these solutions will help them get back on track financially.

 

The report by the Insolvency Service of Ireland also reveal that 3 out of 4 insolvency proposals put to creditors by Personal Insolvency Practitioner’s are being accepted and recent amendments to legislation mean that where creditors have rejected a proposed Personal Insolvency Arrangement, the borrower can seek a review of this decision by the Court.

 

The Insolvency Service of Ireland also put a new initiative put in place last year to encourage greater engagement between creditors and Personal Insolvency Practitioners (PIP).  A PIP can now apply for a €750 payment from the Insolvency Service of Ireland for any insolvency arrangement that has been rejected by creditors, on condition that the arrangement must have proposed a return to all creditors that was greater than or equal to that which they would receive in bankruptcy. This should help PIP’s with the cost of taking a debtors case to court if a creditor rejects an insolvency arrangement put forward.

 

Thousands of people in Ireland are insolvent and in deep mortgage arrears. It is very important for people who may be in fear of losing their homes to be aware that even if they have a court appearance date or are received threatening letters they should contact a Debt advisor or Personal Insolvency Practitioner to ask for professional help.

 

As we can see from the figures released by the Insolvency Service of Ireland things are starting to move in the right direction and lots of people in debt are now getting the long awaited help they need.

 

It’s really good to see that anyone burdened with debt has lots of different solutions now available to them.

 

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, just give us a call on 01 4434125 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 14th July 2016

 

 

 

 

 

 

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