Speaking on RTÉ News this week Lorcan O’Connor, the head of the Insolvency Service of Ireland said that 100 people have been made bankrupt under the new three-year bankruptcy regime and that there have also been 100 borrowers who have secured insolvency deals. 

 The agency has seen a doubling in the number of people securing agreements every month. Mr O’Connor said there would also be a new protocol introduced to simplify the insolvency regime and he intends to roll out a public information roadshow in the coming months to help the general public understand more about the range of insolvency options and bankruptcy.

 The news that these cases are doubling by the month comes as legal experts this week called for extra court sittings to deal with bankruptcy cases.  A judge this week warned bankrupts that there could be significant delays before their cases are finalised due to the volume going through the courts.

 The High Court has dealt with almost 200 bankruptcy motions in the past three weeks as debtors, the vast majority of whom have no formal legal representation, opt for bankruptcy.

 Earlier this week High Court judge Mr Justice Gerard Hogan adjourned a batch of statutory sittings, where bankrupts must formally attend court and make full disclosure of all their debts and assets, because of the “very heavy” pressures on the weekly bankruptcy list.

 A barrister from New Beginning, who provide bankruptcy services, said it had hundreds of bankruptcies pending in the courts while the Irish Mortgage Holders’ Organisation said it was also dealing with record numbers of bankruptcy applications. In addition, Neo Financial Solutions’ a company which advises distressed borrowers said it had now handled 40 bankruptcy cases since the new legislation was introduced earlier this year. 

Mícheál Leydon, Partner at kavanaghfennell commented “It is disappointing to see that bankruptcy numbers have increased so substantially as opposed to seeing those increases in the other new insolvency arrangements such as the Debt Settlement Arrangement which would be more beneficial to all parties involved.  Hopefully, greater public awareness as mentioned by Lorcan O’Connor will make this option more favourable in the future” 

–

See more at: http://www.insolvencyjournal.ie/ij_news_more_details/number-of-bankruptcy-cases-rise-significantly?