Latest news with #InsolvencyServiceofIreland
Irish Independent
14-05-2025
- Business
- Irish Independent
Bankruptcy probes find hidden cars, accounts and properties
Assets with a value of €6.4m were realised into 227 bankruptcy estates. There is also a growing trend of people from abroad coming to Ireland to become bankrupt. This means more investigations have to be launched to look for assets that may be outside the jurisdiction. 'This trend has led to a growing focus on cross-border insolvency issues,' according to the report. 'The complexity of managing such cases will present a significant challenge over the coming years.' Meanwhile, the number of mortgages in long-term arrears remains 'stubbornly high' at about 19,000 accounts, according to the annual report of the Insolvency Service of Ireland (ISI). The agency – which helps people tackle problems with personal debt – points out that the average mortgage interest rate is now 3.82pc, but many households are paying more. The rate was 2.76pc in January 2022. ISI director Michael McNaughton says in the report that the combination of higher interest rates and the increased cost of living 'continues to put pressure on many households and individuals in meeting their mortgage payments, as well as rental and utility bills.' Last year there was a 28pc increase in Personal Insolvency Arrangements (PIAs), which address mortgage-related debt, according to the annual report. The number of Debt Relief Notices, which is a solution aimed at resolving unsecured debt, increased by 48pc. Overall there were 1,544 new insolvency applications made, down slightly from the 1,565 recorded in 2023. 'Our data shows that most people using our services have relatively modest levels of unsustainable debt, with many opting for a Debt Relief Notice,' the ISI says. 'The decline in activity observed from 2020 through to 2022 was somewhat reversed in 2023 and this increased activity has continued into 2024. ADVERTISEMENT 'The 17pc increase in approval of Protective Certificates since 2022 is attributable to several factors including the significant increase in the cost of living, which coincided with a steep rise in interest rates. 'This combination created considerable uncertainty in individuals' personal circumstances and it is expected this will remain a further challenge in 2025.' More people exited bankruptcy than were adjudicated bankrupt last year – 75 compared to 71. The Personal Insolvency Act was changed a decade ago to introduce a Section 115A, whereby the courts can be asked to review a proposed PIA that was rejected by creditors. The upward trend in applications continued last year, though at a more modest rate. There were 380 applications, up 7pc on the previous year. 'The increase in Section 115A applications may reflect an increase in activity generally, but may also reflect greater difficulties in proposal negotiations because of interest rate and cost of living increases,' the report notes. The ISI has facilitated over 15,000 solutions for insolvent debtors since it was launched as an agency over 12 years ago.
Irish Examiner
14-05-2025
- Business
- Irish Examiner
Personal Insolvency Arrangements to address mortgage debt rise 28%, report shows
There was a 28% increase in the number of court approved Personal Insolvency Arrangements (PIAs) — the insolvency mechanism that address mortgage-related debt — during 2024, as the number of accounts in mortgage arrears 'remains stubbornly high', a new report by the Insolvency Service of Ireland has found. The latest annual report from the ISI said there were 1,189 approved insolvency arrangements during 2024, of which 861 were PIAs — an increase from the 929 recorded in 2023, of which 671 were PIAs. In the report, ISI director Michael McNaughton said the combination of increased living costs and higher interest rates 'continues to put pressure on many households and individuals in meeting their mortgage payments as well as rental and utility bills'. In managing these situations, and through no fault of their own, many people may find themselves burdened with an unsustainable level of debt. Mr McNaughton said although the number of people in long-term arrears has fallen in recent years, 'it remains stubbornly high at around 19,000 accounts', adding that the Abhaile scheme 'continues to serve as a crucial entry point into the insolvency framework'. The Abhaile scheme provides a range of services to help people in mortgage arrears and offers free access to financial and legal advice by way of a voucher. The scheme issued 1,958 vouchers for a free Personal Insolvency Practitioner (PIP) consultation during the year. The report said a representative sample from Abhaile data shows of those borrowers who have availed of a PIA, 100% had terms which saw them remain in their family home, while 28% of borrowers had a reduction in their mortgage debt through a write-down of the principal. The report also showed court-approved Debt Relief Notices, a solution aimed at resolving unsecured debt, increased by 48% to 240 last year compared to the 162 recorded during 2023. A DRN is a solution for people with low income, no mortgage and very few assets that allows for the write-off of debts up to €35,000. During 2024, there were 1,544 new insolvency applications made to the ISI, of which 1,165 were PIAs. The ISI had 1,600 active estates under management in bankruptcy last year. Assets with a value of close to €6.4m were realised across 227 bankruptcy estates last year. The number of people adjudicated bankrupt during 2024 stood at 71 — compared to 72 in 2023. The report also noted 75 people exited bankruptcy during the year. There were 1,344 protective certificates (PC) issued during 2024. A PC is a certificate issued by the court that offers a period of protection to a debtor from creditors when applying for relief. The report noted there has been a 17% increase in approval of PCs since 2022, which it said could be attributed to increasing cost of living and rising interest rates. 'This combination created considerable uncertainty in individuals' personal circumstances and it is expected this will remain a further challenge in 2025,' the report said. Read More Average Irish mortgage rate sixth highest in euro area despite recent fall
RTÉ News
06-05-2025
- Business
- RTÉ News
A financial expert's guide to Ireland's Abhaile Scheme
It has been 17 years since the financial crash of 2008, when the landscape of home ownership in Ireland was irreparably transformed. While recent rising house prices have pulled many out of that zone, there are still many mortgage holders locked into loans that have been in arrears for over five years – and many more for two years or more. With negative equity - where you owe more than the property is worth - still very much present, and a continuing inability to meet repayments for many mortgage holders, the need for support services is still crucial in surviving these challenging times. But there is help and support available, no matter how bleak your situation, particularly in relation to your mortgage. John Lowe of reports. The Abhaile Scheme The Abhaile Scheme, created in 2016 and co-ordinated by the Department of Justice and Equality (DJE) and the Department of Employment Affairs and Social Protection (DEASP) is operated by the Money Advice and Budgeting Service (MABS) in conjunction with the Insolvency Service of Ireland (ISI), the Legal Aid Board (LAB), and the Citizens Information Board (CIB). The Insolvency Service of Ireland, itself set up by the Personal Insolvency Act 2012 and 2015, and the Abhaile Scheme are still there to help debtors cope with their financial situations. How does it work? Abhaile - for those not fluent in the Irish language, it means "home" - exists to help people in serious mortgage arrears who are still unable to settle their debts, or those who are facing legal action or home repossession. The goal of the scheme is simple: to keep people in their own homes. It is 100 per cent funded by the state: eligible applicants are provided with vouchers entitling them to free, expert legal and financial advice, which can be accessed through MABS, the Money Advice and Budgeting Service. There are five advice and assistance services provided by the Abhaile scheme: Personal Insolvency Practitioner (PIP) service Accountancy service Consultation solicitor service Duty solicitor service Personal insolvency court review service Don't worry if you're not sure which applies to you, each person who avails of the scheme is assigned an adviser to refer them to the right expert for their case, and to help them to communicate with their lender to work towards a solution. This is vital: while the desire can, understandably, be to hide away from the reality of being unable to meet your mortgage repayments, burying your head in the sand is the worst thing you can do. From 2010, the implementation of the Mortgage Arrears Resolution Process (MARP) outlined five steps for lenders to operate when dealing with those in arrears or close to arrears: Communication Financial information Assessment Resolution Appeals This framework has become compulsory under the Central Bank's Code of Conduct on Mortgage Arrears (CCMA), with a view to helping the borrower as much as possible. However a huge number of cases are outside the MARP guidelines. Can I avail myself of it? To be eligible for the Abhaile scheme, you must meet four criteria: Be in mortgage arrears on your home Be at serious risk of losing your home due to arrears Be insolvent (unable to pay your debts in full) Be reasonably accommodated: that is, that your accommodation is suited to the needs of you and your dependents and is not disproportionately expensive. Remember, the scheme exists to help keep people in their homes, so if your arrears are on an investment or buy-to-let property, you will not qualify (although those in arrears on their home while also owning a buy-to-let property may be eligible). Who should I contact? You can find your local MABS office on contact the MABS helpline from Monday-Friday, 9am-8pm, on 0761 07 2000; or arrange a call back by emailing helpline@ Alternatively, you could also go directly to a Personal Insolvency Practitioner – yours truly is one of 114 PIPs around Ireland. Access the full list from the Insolvency Service of Ireland or click on this link: Remember: you are not alone, and support is available.
