25,000 expected to seek debt deals under new insolvency rules


Charlie Weston
Personal Finance Editor
Irish Independent – 05 March 2013

THOUSANDS more people will apply for debts to be written off under new personal insolvency rules than expected, new research has found.

As many as 25,000 people will apply for personal insolvency debt deals.

This prompted experts to conclude that the Government and the Central Bank have underestimated the demand.

There is set to be a rush of heavily indebted householders seeking to restructure mortgage debts and other borrowings when the new Insolvency Service gets up and running in the summer, according to calculations by business information publication 'Stubbs Gazette' based on poll findings by Red C.

The new Insolvency Service will replace the current inflexible bankruptcy system with court-back deals between over-stretched borrowers and banks. Some debts will be written off if a payment agreement is observed over a five to seven-year period.

But people in these types of arrangements will be told how much they can live on, if the bank signs off on the deal.

Almost 250,000 households will qualify for some form of deal under new insolvency laws, according to the research seen by the Irish Independent.

Out of these, close to 7,000 expect to be made bankrupt over the next year.

The new act allows someone to be automatically discharged from bankruptcy after three years if they meet strict conditions. This is down from 12 years at the moment.

Justice Minister Alan Shatter said last week he expects 3,000 people to apply for bankruptcy in the first full year of operation of the new Insolvency Service.

He said it was difficult to be precise on the exact numbers who will use the new service, but estimated that 18,000 will apply for debt write-offs as part of the debt agreements to be approved by banks, and rubber stamped by the circuit courts.

'Stubbs Gazette' has estimated a much higher figure of 24,500. This is in addition to those going bankrupt.

Managing director of the insolvency publication James Treacy said his estimates were based on questions asked by Red C to 760 households about their income, arrears and types of money they owe.

Top Judgments Registered

11.06.2025

Shawarma Company (Dame) Limited
Address: R/o Rear Of 96 Cherryfield Road, Walkinstown, Dublin 12
Amount: €69,088.90

11.06.2025

Paul Yin
Address: Unit 2, Former Post Office, Blackrock, Co Dublin
Amount: €55,414.74

11.06.2025

LJY Store Limited
Address: R/o 133 Oliver Plunkett Road, Dun Laoghaire, Co Dublin, A96 K2r9
Amount: €50,754.71

11.06.2025

Moshin Raza
Address: 170 Phibsboro Road, Phibsborough, Dublin 7, D07 Vw68
Amount: €36,108.97

Limited Company Notices

23.06.2025

RUSSELL REID LIMITED
Resolved 12/10/25 that the above named company be ...
Read More

23.06.2025

COHEN & COMPANY FINANCIAL IRELAND LIMITED
Resolved 25/07/25 that the above named company be ...
Read More

23.06.2025

IRISH SKINCARE LIMITED
Resolved June 13, 2025 that the above named compan...
Read More

23.06.2025

R.J. PAINTING LIMITED
Resolved June 13, 2025 that the above named compan...
Read More

SEARCH OUR DATABASE PLACE YOUR DEBT WITH US SEND A DEMAND LETTER