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Bankruptcies have increased more than 750% since four years ago

New figures also show a rise in start-ups and a fall in the number of businesses going under.

Image: empty pockets via Shutterstock

AN EIGHT-FOLD INCREASE in the number of bankruptcies has been recorded over the past four years, according to new figures.

However, the data released this morning by Vision-net.ie also shows some positive trends in the economy, with a fall in the number of businesses going under compared to 2013 combined with an increase in start-ups – and at its highest level since 2007.

So far this year, the numbers of bankruptcies registered have sky-rocketed.

“The significant increase in bankruptcies registered in 2014 equally suggests we are starting to tackle the issue of debt in a mature and realistic way,” Vision-net.ie’s managing director Christine Cullen said.

Allowing individuals and businesses to start over, after a reasonable bankruptcy period, will allow these entrepreneurs to begin to contribute our economy again.

There were just 35 bankruptcies registered in 2011 and 2012, creeping up slightly to 56 last year.

The 300 cases so far in 2014 are centred around Dublin (77), following by Kildare (32), Cork (28), and Wicklow (22).

The Irish Independent reported yesterday that several professional bodies are hoping to alter rules surrounding Personal Insolvency Arrangements that would allow their bankrupt members to continue to practice.

In some cases, you would be unable to be a member of the organisation if declared bankrupt.

Other figures released today show that 12,890 new companies were established in the first nine months of this year, a level not seen since 2007.

While professional services is the dominant sector with 3,183 new companies, construction and real estate showed the largest percentage increases year-on-year at 36% and 38% respectively.

At the opposite end of the spectrum, four businesses a day have gone under so far this year, a figure down 4% from last year.

“Ireland’s business sector has experienced a hugely traumatic period over the last seven years, with business and consumer confidence falling to a low ebb,” Cullen added, “Yet, our monthly data over the last couple of months strongly indicates the initial seeds of recovery have begun to take hold.”.

Read: Nama and Ulster Bank block Sean Dunne’s bid to dismiss bankruptcy >

More: Stop paying your mortgage. Don’t leave your home – new advice from the IMHO >

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Nicky Ryan

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