Personal Insolvencies increase by 25%
1 July 2011

Figures published by the Accountant in Bankruptcy show a 25% increase in the number of personal insolvencies in the first quarter of 2010/11 as against the previous quarter. The figures also show a 1% decrease against the same quarter in the previous year. While there has been a decrease the numbers are quite significant with 5319 personal insolvencies reported in the first quarter of 2011/12. That number includes both bankruptcies and protected trust deeds.

Part of the increase has been put down to the introduction of the Certificate of Sequestration which has made the route to sequestration easier for certain debtors. 759 debtors used the Certificate as a route to sequestration in addition to 1305 who petitioned through the LILA (Low Income Low Asset) procedure.

Full details of the statistics can be found on the AIB website

The rise in insolvencies should act as a reminder to creditors to maintain their credit control procedures. Allowing debts to accrue without taking action can result in a loss if the debtor is sequestrated. The old adage that the earlier action is taken to collect a debt the better applies even more nowadays.