New Beginning Welcomes Increased Numbers Availing Of Personal Insolvency Deals
New Beginning welcomes the increased numbers availing of Personal Insolvency to deal with unsustainable debts. We note the large write offs in PIAs – 21% average in secured debt and 83% in unsecured debt. We note also the general acceptance of this by creditors with almost 75% of deals agreed. The overall debt involved is in excess of €3.5 billion.
We expect the figures to grow over the coming years.
Two things slow this down: The first is legislative uncertainty which causes people to adopt a wait and see approach in the expectation that deals will get better. The second is the lack of accurate information available.
The reduction in bankruptcy applications seen in Q2 is a direct result of the possibility of a reduction in term envisaged in Deputy Willie Penrose’s Bill expected to be enacted shortly. Expected changes in the Personal Insolvency regime is also likely to cause people to adopt a wait and see approach. In the circumstances we call upon government to act quickly to make the changes so that there is certainty available to people in making the choices that they need to make.
Ross Maguire of New Beginning said:
“One thing is clear – those who have held out are in a much better position that those who sold up or crystallised losses earlier. This is all very well, but the time has come now to deal with the debt once and for all and to ensure this we need certainty around the operation of the new laws. Government should try and ensure this over the coming weeks.”
We are encouraged by the ISI and Court Services intention to get more accurate information to people who need it. New Beginning continues to play its part with seminars and clinics being organised nationally.
Ross Maguire of New Beginning said:
“It is vital that the ISI get the message out loud and clear – there are real solutions available now. It is necessary that the ISI counter the wrong and misleading negativity being pushed by those who consistently want the system to fail.”