Insolvency figures reveal 26 per cent increase in Personal Insolvency Arrangements

There was a 26 per cent increase in new applications for Personal Insolvency Arrangements (PIAs) in the first quarter of 2016, according to new figures.

This year’s first quarterly statistical bulletin from the Insolvency Service of Ireland (ISI) recorded continued growth in new applications, protective certificates and approved arrangements.

Lorcan O’Connor, director of the ISI, said the growth in PIA applications “is likely due to the newly introduced Court Review process, sometimes referred to as the removal of the ‘bank veto’.”

Since the ISI opened, it has dealt with debt of almost €5 billion and 1,009 PIAs, 379 Debt Settlement Arrangements (DSAs), 669 Debt Relief Notices (DRNs), and 1,096 bankruptcies were approved.

Ross Maguire of debt advice group New Beginning said: “While still only dealing with the tip of the iceberg it is very encouraging to see more people using the system.

“Under the new laws the banks have lost their control and a Court can and will enforce a proposal where the proposal is fair and equitable.

“This is a huge change in the dynamic between borrowers and banks. It can help tens of thousands of families – but the first step is for the borrower to take advice.

“We are seeing deals being done that we could only have dreamt of a few years back.”