Our worrying Insolvency statistics

Applications for insolvency in Waterford were well in excess of the national average in the first half of 2015 and were approximately twice the rate recorded in neighbouring Kilkenny and Tipperary.
These figures, disclosed to The Munster Express by the Insolvency Service of Ireland (ISI), show that in the second quarter of this year (April to June), there were 3.18 applications per 10,000 adults in Waterford, compared to a regional rate of 2.51 and 1.71 nationally.
This followed the Q1 (January to March) figures which revealed that there were 3.77 applications per 10,000 Waterford adults, compared to a south east average of 2.48 and the national tally of 1.42.
These figures come in the wake of a Waterford MABS report for 2014 which revealed that its office at Maritana Gate was responsible for 60 of the 248 Debt Relief Notices (DRN) granted by the Circuit Court nationally during 2014, with €500,000 of debt relieved in the city and county.
Equally noteworthy is the fact that of 1,164 insolvency arragements approved nationally over the first six months of the year, 97 of them were sourced to Waterford – 8.3%.
And when one considers that the combined tallies for Kilkenny (27) and Tipperary (59) for the same period came to 86, the level of potentially life-damaging indebtedness in Waterford at present clearly comes into stark and worrying view. For the record, there were 46 insolvencies arrangements entetred into in Wexford between January and June.
During the 2014-15 period, there were 24 bankruptcies in Waterford from a national total of 610 (Kilkenny: 27, Tipperary: 24, Wexford: 26).
According to the ISI’s Amanda McLoughlin: “Living with debt can be very isolating. The stress and anxiety of the situation can have serious implications on a person’s physical and mental helath. We have already helped thousands of people across the country to get a fresh start – and the solutions have been described as ‘life changing’ due to the sense of ‘absolute relief’ after having an arrangement approved.”
According to Waterford MABS, “too many people remain unable to pay their personal debts. For over 20 years, we have supported people to work with their creditors to reach realistic sustainable payment agreements. In many cases, this works very well and people get back on track. However, for many this is simply not possible.”
A spokesperson added: “When income drops, debts can mount and difficulties spiral. Far too often people go without food, heat and other life essentials in order to try and pay back what they owe.”
A DRN is one of the options avaible via the 2012 Personal Insolvency Act and can prove a soluition for those on low income, who have little or any assets or little disposable income available to repay personal debts under €20,000.
According to MABS: “Under a DRN it is possible to have all qualifying debt written off. A DRN has a three-year supervision period during this time there is no requirement to repay any of the debts included in the DRN. Once a debtor has kept to the conditions under the DRN then all the debt in the DRN will be written off at that time.”
At present, there are five Approved Intermediaries (AIs) – professional debt advisors – employed by Waterford MABS – and there’s no cost for a DRN since the ISI has waived its application fee until the end of this year.
A DRN will last for up to three years, said MABS. “It is formal, legally binding solution whereby unmanageable debt is completely written off after three years.”
Once a DRN is in place, the person who enters into such an agreement is allowed is entitled to “a reasonable standard of living that includes food, clothing, education, health care and a modest allowance for savings”.
A MABS spokesperson added: “You are not told how you should spend your allocated reasonable living expenses, so you are still in control of your spending. An AI will go through all of this with you enquire about applying.”
Said a Waterfordian who received a DRN last winter: “Obtaining a Debt Relief Notice has helped my depression and ultimately been life changing for me. I can afford to live again.
“As a result I have learned to manage my money and I plan never to borrow on credit again. I have already recommended this process to a friend. My quality of life has increased and the mental pressure is gone. I can finally sleep at night.”
The ISI’s Amanda McLoughlin added: “There is a solution to every debt problem and we would encourage people to start tackling their debt problems today with the help of the ISI and get back on track financially.”
For further information, visit www.backontrack.ie or www.mabs.ie or call MABS Waterford, 6B Wallace House, Maritana Gate, Canada Street, Waterford on 0761072050.