Number of applications for insolvency solutions up 39 per cent

The number of new applications for insolvency solutions through the Insolvency Service of Ireland (ISI) increased by 39 per cent in 2017.

The figure is contained in the ISI’s latest annual report, which Justice Minister Charlie Flanagan laid before the Oireachtas yesterday.

Speaking afterwards, Mr Flanagan thanked Lorcan O’Connor, director of the ISI, and his staff for “their dedicated work in helping debtors return to solvency in Ireland”.

In 2017, 118 family homes were transferred back into the ownership of former bankrupts, the ISI’s report reveals.

He continued: “I am heartened by the positive outcomes of this work and, in particular, the fact that debtors have been enabled to stay in their homes in over 90 per cent of cases where a formal Personal Insolvency Arrangement has been reached.

“I am also pleased to note the initial success of the Abhaile Scheme, launched by the Government in 2016 in order to ensure people who are in danger of losing their home have access to free professional advice – including advice from a Personal Insolvency Practitioner (PIP).

“Abhaile provides for free financial and legal advice and assistance to householders to identify solutions to resolve their mortgage arrears and, where possible, help them remain in their homes.”

Last year, 5,083 vouchers were issued to householders for a free consultation with a PIP and that 4,030 vouchers were redeemed by PIPs, indicating the completion of the provision of specific financial advice and assistance for those borrowers under the Abhaile Scheme.

Mr Flanagan added: “I acknowledge the ISI’s recommendations to the Department of Justice and Equality in relation to options for reform of the Personal Insolvency legislation in the context of a statutory review being undertaken under section 141 of the 2012 Act.

“These recommendations will be taken into consideration as the review is progressed by my Department.”