ISI Statistics
Quarter 3 2014
ISI
Tackling problem debt together
Insolvency Service of Ireland
Quarter 3 2014
Table of Contents
Foreword ......................................................................................................................... 3
Regulation ........................................................................................................................ 4
Case Management – DRN, DSA, PIA ................................................................................. 5
Creditor Acceptance/Rejection ........................................................................................ 7
Qualifying Debt since Launch ........................................................................................... 9
Applicant Profile – DRN, DSA, PIA (since launch) ............................................................ 10
Bankruptcy ..................................................................................................................... 11
Appendix – Data Tables .................................................................................................. 13
THE DEBT RELIEF NOTICE (DRN) PROVIDES FOR THE WRITE OFF OF QUALIFYING DEBT UP TO €20,000, SUBJECT
TO A 3 YEAR SUPERVISION PERIOD.
THE DEBT SETTLEMENT ARRANGEMENT (DSA) PROVIDES FOR THE AGREED SETTLEMENT OF UNSECURED DEBT
WITH NO LIMITS INVOLVED OVER A PERIOD, NORMALLY EXPECTED TO BE 5 YEARS.
THE PERSONAL INSOLVENCY ARRANGEMENT (PIA) PROVIDES FOR THE RESTRUCTURING OR SETTLEMENT OF
SECURED DEBT OF UP TO €3M AND THE SETTLEMENT OF UNSECURED DEBT OVER A PERIOD, NORMALLY
EXPECTED TO BE 6 YEARS.
IN THE CASE OF A DSA OR PIA, AFTER A PROTECTIVE CERTIFICATE ISSUES, PERSONAL INSOLVENCY
PRACTITIONERS (PIPS) WILL HAVE 70 DAYS IN WHICH TO DEVELOP AN ARRANGEMENT.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 2
Foreword
I am pleased to publish the statistical report of the Insolvency Service of Ireland (ISI) covering the third
quarter of 2014 (Q3). So far this year, the ISI has dealt with insolvent debtors with an aggregate debt of
almost one billion euro.
ISI activity increased in Q3, with more protective certificates issued, arrangements approved and
bankruptcies than any previous quarter. There was a 41% increase in PIA protective certificates issued
and a 78% increase in successful PIA arrangements. However, it is acknowledged that overall activity
levels are lower than expected.
The ISI is launching a number of initiatives this autumn through, its ‘back on track’ campaign, including
the temporary waiving of application fees until the end of 2015. Through these initiatives, activity
levels are expected to increase significantly over the coming months.
Within this statistical report, an analysis of the outcome of protective certificates issued to date and
the extent to which creditors have supported proposals made by PIPs is outlined. It is encouraging that
three out of four cases are supported by creditors.
These statistics will be updated on a quarterly basis and published in the statistics section of the ISI
website - www.isi.gov.ie.
Lorcan O'Connor
Director
7th October 2014
These statistics are for informational purposes only. No person should place reliance on the accuracy of
the statistics and should not act solely based on them. The statistics are primarily based upon cases
created by duly authorised Approved Intermediaries and Personal Insolvency Practitioners on the ISI
Case Management System, the official registers of Approved Intermediaries and Personal Insolvency
Practitioners and the statement of affairs submitted by those seeking to be declared bankrupt. Figures
cover the period 1 July 2014 to 30 September 2014 unless otherwise stated.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 3
Regulation
There are 235 Personal Insolvency Practitioners and Responsible Persons available to meet debtors, on
a face-to-face basis, to solve their debt problems.
Personal Insolvency Practitioners
160
138
141
Q2 2014
Q3 2014
128
140
120
95
100
80
60
51
40
20
0
Q3 2013
Q4 2013
Q1 2014
The ISI began authorising practitioners last autumn. There are now 141 Personal Insolvency
Practitioners on the ISI register.
Responsible Persons
94
100
87
90
73
80
70
55
60
50
40
35
30
20
10
0
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
42 MABS companies have been authorised as Approved Intermediaries. There are 94
responsible persons linked to these authorisations.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 4
Case Management – DRN, DSA, PIA
More than 350 new applications in Q3
Almost 1,200 applications since launch
1400
400
DRN
DSA
PIA
Total
DRN
350
Total
1000
250
800
200
600
205
150
400
100
200
84
50
63
0
0
Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul Aug Sep
2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014
Q3 2014
180 Protective Certificates issued in Q3
180
PIA
352
300
200
DSA
1200
DSA
PIA
450
Total
400
180
160
140
More than 400 Protective Certificates
issued since launch
DSA
PIA
Total
350
300
149
120
250
100
200
80
150
60
100
40
20
50
31
0
0
Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul Aug Sep
2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014
Q3 2014
More than 130 arrangements
approved in Q3
More than 300 arrangements
approved since launch
350
140
DRN
DSA
PIA
DRN
Total
131
120
DSA
PIA
Total
300
100
250
80
200
150
60
61
40
48
100
50
20
22
0
0
Q3 2014
Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul Aug Sep
2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 5
Increase in Protective Certificates and Arrangements
Since the ISI began accepting applications, Personal Insolvency Practitioners have created more than
1,150 cases. These numbers do not include cases created on the ISI system and subsequently
withdrawn. Approved arrangements reflect the number of proposals approved by creditors and/or
Court
Q3 saw the highest number of protective certificates issued and arrangements approved to date.
Percentage of debt to be written off under a DSA or a PIA
Type of Debt
Median
Range
PIA - Secured Debt
17%
0% → 69%
PIA -Unsecured Debt
88%
27% → 100%
DSA - Unsecured Debt
79%
26% → 98%
PIA
DSA
Applicants for new arrangements (DRN, DSA, PIA) by County
404
119
62
44
13 13
16
61
30
18 12
5
56
46
36
3
16
18 10 10 9 18
Insolvency Service of Ireland – Statistics Quarter 3 2014
39
37 33
22
Page 6
Creditor Acceptance/Rejection
The ISI has undertaken an analysis of protective certificates issued and the extent to which they have
led to a solution that has returned insolvent debtors to solvency. Once a protective certificate has
issued, one of the following outcomes is possible:

PIP successfully uses the protective certificate period of 70 days to reach agreement between
the debtor and his or her creditors. This is ultimately reflected in a 'YES' vote at a creditors
meeting.

PIP identifies and implements an alternative solution for the debtor that does not necessitate a
DSA or PIA. No creditors meeting or vote is held.

PIP is unsuccessful in reaching an agreement between the debtor and his or her creditors. This
is ultimately reflected in a 'NO' vote at a creditors meeting or, if the PIP is of the view that a
'NO' vote is inevitable, the PIP may not proceed with a creditors meeting.
In collating these figures, where a protective certificate has expired and the ISI is unaware of the
outcome, it is assumed that an alternative solution has not been put in place. This conservative
approach may be overstating the cases that have been unsuccessful.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 7
Creditor Acceptance / Rejection
Rejected prior to
creditors meeting
Protective
Certificate expired
No vote
Alternative
solutions
YES
NO
Yes vote
DSA
PIA
TOTAL
Yes vote
80%
61%
68%
Alternative solutions
0%
6%
4%
Successful outcome
80%
67%
72%
No vote
15%
27%
23%
Rejected prior to creditors
meeting
0%
4%
2%
Protective Certificate expired
5%
2%
3%
Unsuccessful outcome
20%
33%
28%
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 8
Qualifying Debt since Launch
€519 Million Qualifying Debt
Revenue Debt
Contingent Debt
Other debt*
Credit Union
Trade Creditors
PPR Lender
Financial
Institutions
BTL Mortgages
*Other debt includes personal guarantees, utilities, store cards/catalogues and professional fees.
The total debt involved in the approximately 1,200 cases currently with the ISI is almost €520 million.
You can find a breakdown of the type of debt in the chart above and table below.
Principal Private Residence Mortgages
€ 225.23m
43.4%
Buy to Let Mortgages
€ 164.00m
31.6%
Financial Institutions
€ 67.99m
13.1%
Trade Creditors
€ 20.24m
3.9%
Credit Union Debt
€ 11.94m
2.3%
Revenue Debt
€ 8.30m
1.6%
Contingent Debt
€ 7.27m
1.4%
€ 14.01m
2.7%
€ 518.98m
100%
Other debt*
Total Qualifying Debt
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 9
Applicant Profile – DRN, DSA, PIA (since launch)
Occupation
Unemployed
26%
Status
Public Sector
11%
Divorced/
Separated
14%
Widow/er
1%
Student
1%
Selfemployed
10%
Private
Sector
43%
Retired
2%
Other
2%
Single
25%
Married/
Civil Partner
60%
Housewife/
husband
5%
Age Profile of Debtors
65 +
2%
Gender
18 - 24
1%
55 - 64
13%
25 - 34
13%
Female
48%
45 - 54
31%
35 - 44
40%
An individual application is an application with a
sole debtor.
Types of Application
Interlocking
(PIA only)
40%
Individual
(DRN, DSA,
PIA)
56%
Joint
(DSA, PIA)
4%
Male
52%
Where there are two (or more) debtors, who are
jointly liable for all of the debts to be included in a
DSA or a PIA arrangement, a joint application is
appropriate.
An interlocking application would be appropriate
where two (or more) PIAs are to be administered
in common; usually because of the financial
relationship of the debtors involved. Examples
would be a couple or business partners, where
they are jointly liable for some - but not all - of the
debts to be included in the PIA arrangement.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 10
Bankruptcy
Bankruptcy Adjudications
350
300
301
250
200
150
137
100
98
50
66
58
0
Q1 2014
Q2 2014
Q3 2014
2014
2013
The number of bankruptcies in Q3 2014 is more than double the total number for 2013. Q3 2014
bankruptcies have also exceeded Q2 2014, giving the highest number of new bankruptcies on record.
This has been driven by the increase in debtor petitions, which now represents approximately 95% of
2014 bankruptcies. In the past, the vast majority of bankruptcies were based on creditor petitions.
€400m Aggregate Bankruptcy Debt
.€450,000,000
Secured
Unsecured
Total
€400,000,000
€350,000,000
€300,000,000
€250,000,000
€200,000,000
€150,000,000
€100,000,000
€50,000,000
€0
Q1 2014
Q2 2014
Q3 2014
Insolvency Service of Ireland – Statistics Quarter 3 2014
2014
Page 11
€400m Aggregate Bankruptcy Debt (since 1st January 2014)
Unsecured
33%
Secured
67%
The total debt involved in bankruptcy adjudications as of Q3 2014 is more than €400 million. This is
made up of 67% secured debt and 33% unsecured debt. In the case of secured debt, it is likely that
current market values of securities are significantly below debt levels.
Number of Bankruptcies by County (since 1st January 2014)
77
32
29
21
14
12
2
5
5
3
5
7
14
10
2
2
4
3
10
3
Insolvency Service of Ireland – Statistics Quarter 3 2014
2
4
9 11
5
7
2
1
Page 12
Appendix – Data Tables
Case Management Data Table
Case Management Quarterly Statistics 2014
New Applications
Period
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2013
Total
121
332
347
352
0
121
2014
To date
1,031
1,152
DRN
Protective Certificates
0
75
77
84
0
0
DSA
31
61
65
63
0
31
PIA
90
196
205
205
0
90
Total
11
59
152
180
0
11
236
236
189
220
606
696
n/a
118%
5%
0%
n/a
DSA
PIA
Arrangements Approved
5
24
46
31
0
5
6
35
106
149
0
6
Total
1
55
124
131
0
1
391
402
101
106
290
296
n/a
436%
158%
18%
n/a
n/a
380%
92%
-33%
n/a
n/a
483%
203%
41%
n/a
DRN
DSA
PIA
0
44
67
61
0
0
1
6
30
22
0
1
0
5
27
48
0
0
310
311
172
172
58
59
80
80
n/a
5400%
125%
6%
n/a
n/a
∞
52%
-9%
n/a
n/a
500%
400%
-27%
n/a
n/a
∞
440%
78%
n/a
% change on previous quarter
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Note 1:
Note 2:
n/a
174%
5%
1%
n/a
n/a
∞
3%
9%
n/a
n/a
97%
7%
-3%
n/a
New applications for Q4 2013 plus Q1 and Q2 2014 adjusted for subsequently withdrawn cases
'Arrangements Approved' include those approved by creditors and/or by Court
Bankruptcy Data Tables
Q1 2014
Adjudications
Q2 2014
2014
% Change on
% Change on
% Change on
Previous Adjudications Previous Adjudications Previous
Quarter
Quarter
Quarter
66
186.96%
Q1 2014
Bankruptcy
Debt
Q3 2014
98
48.48%
Q2 2014
% Share
Bankruptcy
Debt
137
% Share
Bankruptcy
Debt
301
2014
% Share
% Change on
2013
Adjudications
39.80%
Q3 2014
2013
58
418.97%
2013
Bankruptcy Debt
% Change on
2013
Sec.
€101,620,134
74.76%
€89,231,001
57.25%
€79,048,628
71.68%
€269,899,763
€31,587,594
754.45%
Unsec.
€34,314,409
25.24%
€66,627,214
42.75%
€31,230,786
28.32%
€132,172,409
€23,201,763
469.67%
Total.
€135,934,543
100.00% €110,279,414
100.00%
€402,072,172
€54,789,357
633.85%
100.00% €155,858,215
Note: The percentage changes in the bankruptcy tables above have been rounded to two decimal places.
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 13
ISI Information Line and Website Data Table
Telephone
Emails
Website Visits
Total Contacts
Pageviews
PDF Downloads
Q2 2013
1,828
725
34,611
37,164
203,487
11,201
Q3 2013
2,960
905
50,830
54,695
281,606
17,580
Q4 2013
2,326
339
31,198
33,863
173,567
9,836
Q1 2014
2,814
498
38,645
41,957
229,380
13,150
Q2 2014
2,852
639
32,231
35,722
212,758
9,462
Q3 2014
2,513
825
32,160
35,498
230,019
6,360
Q4 2014
0
0
0
0
0
0
2013
7,114
1,969
116,639
125,722
658,660
38,617
2014
8,179
1,962
103,036
113,177
672,157
28,972
To date
15,293
3,931
219,675
238,899
1,330,817
67,589
Insolvency Service of Ireland – Statistics Quarter 3 2014
Page 14