Issue 415 (Week ending 09/09/2020)

As the country officially enters recession, a harsh reality of the new economic climate is the inevitable increase in individuals seeking different avenues to deal with debts that have fallen due. July 2020 saw the Insolvency Service of Ireland receive a record 239 applications to their three different solutions: Personal Insolvency Arrangements, Debt Relief Notices & Debt Settlement Arrangements, compared to 106 in 2019, an increase of 125%.

July 2019 vs July 2020

The number of applications to the ISI have been higher in almost all months this year in comparison to 2019, however, July saw the largest spike with a 125% increase on the same period last year. Personal Insolvency Arrangements (199) and Debt Settlement Arrangements (26) both saw the highest recorded applications in a single month since the ISI's inception in 2013. The same can be said for Protective Certificates, (a precursor to the three solutions) which also saw its highest month for applications in July (234).

Personal Insolvency Arrangement:
A formal agreement with creditors, that will write off some unsecured debt and restructure any remaining secured debt, while keeping the person in their home where possible (1).

July 2019: 66
July 2020: 199 (202% Increase)

Debt Settlement Arrangement:
A formal agreement with creditors, that allows for some write off of unsecured debt. A person agrees to pay a percentage of their overall debt over a specified period. (1)

July 2019: 5
July 2020: 26 (420% Increase)

Debt Relief Notice:
For those who have a low income, few assets and debts of less than EUR 35,000 where it is unlikely that a person will be in a position to repay and it is unlikely their financial situation will improve in the next 3 years. (1)

July 2019: 35
July 2020: 14 (60% Decrease)

Protective Certificates
A protective certificate is a document issued by the Court which offers the debtor and their assets protection from legal proceedings by creditors while they are applying for a DSA or PIA. (1)

July 2019: 52
July 2020: 235 (351% Increase)

Figures for August 2020 look to be in line with 2019 figures. As a result it will be one to watch to see if September's figures are also in line with last year or if they continue the trend of July.

The Importance of Background Checks

As more and more applications are recorded with the ISI it will become even more vital to perform background checks on individuals as part of your Due Diligence/KYC processes. At the click of a button CRIF Vision-net simultaneously searches and retrieves all the information you need to ensure you have the most up to date and reliable data in order to make the right decisions. A Credit Check Individual (CCI) from CRIF Vision-net searches ISI records of all three debt solutions as well as 8 other registries to give the most comprehensive background check on the Irish market:

11 Registries:
1) Consumer Bad Debt Judgments
2) Bankruptcy
3) Disqualified/Restricted Directors
4) Directorship
5) Business Owners
6) Personal Insolvency Arrangements
7) Debt Settlement Arrangements
8) Debt Relief Notices
9) Protective Certificates
10) Revenue Defaulters
11) PEP Search (optional)

For more information on CRIF Vision-net background checks call us today on 01 903 2657 or Email: Info.vision-net@crif.com to find out more about finding new companies or our Business Lists.

ISI Debt Solutions