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Debt Problems

Insolvency service seals threefold increase in debt arrangements

Although coming off a low base, the insolvency service is happy to see growth.

THREE TIMES AS many insolvency arrangements were put in place during the second three months of the year as during the preceding quarter.

New statistics from the Insolvency Service of Ireland show an increase of the same proportion in the number of protective certificates issued, and a 150% increase in the number of new bankruptcy cases.

The ISI is currently dealing with over €0.5 billion of debt so far this year, the resolution agency said.

The acceptance rate by creditors of personal debt solutions is 74%.

Commenting on the results, ISI director Lorcan O’Connor acknowledged that overall numbers were still low, although he pointed to increases in the last quarter as evidence that the situation is improving.

“Although numbers have been low to begin with , they are increasing every month and the trend is moving in the right direction as people become more comfortable with the suite of ISI debt solutions.”

Debt protocal

The service also took the wraps off its new Debt Settlement Arrangement protocol, which will use standardised forms to up the pace of debt solution agreements.

“This protocol is very important as its existence is expected to result in the faster development of proposals, faster acceptance by creditors and higher acceptance rates by creditors.”

The ISI said that it is planning to launch an information campaign in the autumn “in an effort to reach out to those struggling with debt and make it clear that there is a solution for everyone”.

Read: Insolvency chief blasts Bank of Ireland>

Read: Column – there are fewer bankruptcies than expected so far this year. Why?>

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