Author Archives: Tanya Ní Céirín

The Insolvency Service of Ireland Welcomes Commencement of One Year Bankruptcy

The ISI welcomes the commencement of provisions contained within the 2015 Bankruptcy (Amendment) Act by the Minister for Justice and Equality, Ms. Frances Fitzgerald, T.D. These changes come into effect on 29 January 2016.
The new provisions:

  1.  Reduce the bankruptcy term from 3 years to 1 year.
  2. Reduce the income payment period from 5 years to 3 years.
  3. Provide for the re-vesting of family homes in debtors, where the Official Assignee has not issued proceedings for the sale of the property within 3 years of the adjudication of bankruptcy.
  4. Widen the powers of the Official Assignee to disclaim assets in bankruptcy estates which have no value to the estate, yet may involve a burden on the estate.
  5. Extend the discharge period in bankruptcies up to 8 years and up to 15 years; depending on the seriousness found by the Court of non co-operation with and/or non- disclosure of assets to, the Official Assignee.
    The Act also envisages the abolition of a second Court sitting which persons declared bankrupt must subsequently attend. The ISI understands this change has not yet been commenced as it requires Court Rule amendments which should be finalised in the near future.

Lorcan O’Connor, Director of the ISI said “building upon other recent improvements, including a higher Debt Relief Notice threshold, the removal of the so called ‘bank veto’ and the new debtor support package announced by the Minister for Justice and Equality last week, the reduction in the bankruptcy term means that there has never been a better time to take the first step to solvency and a fresh start. The first step is to visit www.backontrack.ie.” He encouraged debtors to seek the advice of a Personal Insolvency Practitioner (PIP) or Approved Intermediary (AI). PIPs and AIs are located around the country and contact details can be found on www.backontrack.ie or by calling the ISI’s information line 076 106 4200.
Chris Lehane, of the ISI, who is the Official Assignee in Bankruptcy and administers bankruptcy estates said that people currently in bankruptcy seeking clarity on their exit date and related requirements regarding payment orders etc. should visit the Bankruptcy section of the ISI website to see an Information Notice in this regard here.

Get your life assurance while you’re young!

Some people make the mistake that life assurance is only for middle aged and older people, who are starting to question their mortality. In fact it is viewed only as a necessary evil by younger people, many of whom only take out cover when they are forced too, for example when getting a mortgage.

But actually it makes a huge amount of sense to get life cover in place while you are still young, for a number of reasons. Continue reading →

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The Independent Newspaper has reported that there is a short fall of 13,000 new homes being built this year, than is actually required.

Work has started on fewer than 3,000 homes to be sold on the open market and help alleviate the housing crisis so far this year – that’s 13,000 short of the 16,000 needed in 2015.

Data from the Department of the Environment shows that just 4,671 units are under construction, but 40pc of these – or 1,883 – are one-off homes being built to order and unlikely to be put up for sale. Continue reading →

Insolvency Service of Ireland (ISI) Q2 Statistics

Insolvency Service of Ireland (ISI) Q2 Statistics

 

Momentum continues to grow – more applications, Protective Certificates and arrangements in place than in any previous quarter

15 July 2015: The ISI today published its Quarter 2 Statistical Report for 2015. The Report shows continued growth, month on month, in activity across all alternative solutions to bankruptcy.  Growth has been particularly strong since the launch of the ‘Back on Track’ information campaign last October which coincided with the waiving of application fees.  New bankruptcies in Q2 have fallen compared to Quarter 1.

The key Q2 2015 quarterly statistics include:

  • Over 400 solutions in Q2 (117 DRNs, 75 DSAs, 150 PIAs and 92 bankruptcies)
  • 251 of 344 (73%) of the Protective Certificates issued are now for Personal Insolvency Arrangements

The statistics in aggregate show:

  • Over 1,300 Protective Certificates issued (1,340)
  • Over 1,000 Approved Arrangements (1,163)
  • Over 2,500 applications (2,521)
  • 711 Bankruptcies since term reduced to 3 years
  • Cases involve debt of over €3.5 billion
  • Successful outcome in 77% of proposals

 

Anyone concerned by significant debt issues is encouraged to consult a Personal Insolvency Practitioner or an Approved Intermediary, details of which are available on www.backontrack.ie or by calling 076 106 4200.

 

A copy of the ISI’s Q2 Statistical Report is available for download here.

 

Davy Report-“Irish house price inflation set to slow in April”

DAVY VIEW
The Euro Stoxx 50 and S&P500 both closed down by 1.0% on Tuesday. Investors judged good news on the health of the US economy as bad news for stock markets – increasing the probability of Federal Reserve rate rises sooner in 2015. Irish average weekly earnings data still showed modest signs that wage growth is slowly emerging, with private sector earnings up 0.5% on the year. Irish house prices for April, to be released this morning, are expected to show a slowdown in annual inflation.

Stock markets fell on Tuesday: the Euro Stoxx 50 and S&P500 both closed down by 1.0%. Investors judged good news on the health of the US economy as bad news for stock markets – increasing the probability of Federal Reserve rate rises sooner in 2015. Stronger-than-expected durable and capital goods orders, coupled with rising house prices and consumer confidence, helped reinforce the view that the US economy will bounce back in Q2 2015. The dollar pushed through $1.088 against the euro on Tuesday before paring back gains, now trading at $1.092.
Yesterday’s Irish average weekly earnings data still showed modest signs that wage growth is slowly emerging. Average weekly earnings in the private sector rose by 0.6% in the year to Q1 2015 – exactly in line with the 0.6% rise in calendar year 2014. Total average weekly earnings rose by 0.5% in the year to Q1 2015, held back slightly by the small 0.1% gain in the public sector.
Later this morning, Irish residential property prices for April will be released. There was a 0.9% gain in March but sharp 1.4% and 0.4% falls through January and February. Overall, Irish residential property prices fell by 0.9% in Q1 2015 – led by a 1.6% decline in Dublin.
We expect that prices will be broadly flat through H1 2015 before picking up slightly in the second half of the year. Our analysis of MyHome asking prices points to a small rebound in Q2 – paring back some of the declines in Q1. However, this still represents a sharp slowdown in double-digit rates of annual house price inflation and down from 25% in Dublin. We expect annual inflation will slow to 5% by the end of 2015. Also, it remains to be seen what impact the Central Bank of Ireland’s new mortgage lending rules will have – limiting banks’ new lending over 80% LTV to 15% of new loans. This could have a larger negative impact on prices than we expect, posing a down side risk to our forecasts.MARKETS IN NUMBERS

Equity Markets (Local) Level 1 Day % Month to Quarter to Year to  1 Year
      Date % Date % Date % Ago %
Euro Stoxx 50 3,619 -1.0 1.5 -0.3 17.6 15.4
Ireland 6,267 0.1 3.7 4.4 21.7 30.6
UK 6,949 -1.2 0.2 3.3 7.8 5.5
France 5,084 -0.7 2.0 2.7 21.2 15.7
Germany 11,625 -1.6 1.5 -2.9 18.6 16.9
MSCI World 1,781 -1.3 0.5 2.9 5.5 7.0
S&P 500 2,104 -1.0 1.1 2.1 3.1 12.3
Nasdaq 5,033 -1.1 2.0 2.9 6.9 20.3
Hang Seng 28,033 -0.8 0.0 13.0 19.8 26.2
Nikkei 225 20,473 0.2 4.9 6.6 18.2 42.2
Currencies/Bond Yields Level Level 1  Level Last Level Last Level Last Level 1 
Commodities   Day Ago Month End Qtr End Yr End Year Ago
Stg/EUR 0.7084 0.7068 0.7311 0.7243 0.7765 0.8111
USD/EUR 1.0909 1.0873 1.1224 1.0731 1.2098 1.3635
USD/Stg 0.6495 0.6501 0.6514 0.6748 0.6419 0.5949
Ireland 10 Yr Bond 1.25 1.25 0.93 0.75 1.25 2.69
German 10 Yr Bond 0.55 0.55 0.37 0.18 0.54 1.39
UK 10 Yr Bond 1.88 1.88 1.83 1.58 1.76 2.64
US 10 Yr Bond 2.14 2.14 2.03 1.92 2.17 2.51
Oil – Brent ($) 64 64 67 55 57 110
Gold Futures ($) 1187 1187 1182 1183 1184 1266

 J&E Davy, trading as Davy, is regulated by the Central Bank of Ireland. Davy is a member of the Irish Stock Exchange, the London Stock Exchange and Euronext. In the UK, Davy is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our authorisation and regulation by the Financial Conduct Authority are available from us on request. All prices are as of close of previous trading day unless otherwise indicated. Davy Asset Management Limited, trading as Davy Asset Management, is regulated by the Central Bank of Ireland. Past performance is not a reliable guide to future performance. The value of investments may fall as well as rise. Investments denominated in non-euro currencies, may be affected by changes in exchange rates when converted to euro or other currencies.

 

 

New ISI measures to encourage uptake of Insolvency services

In a bid to encourage the uptake of Personal Insolvency Services, the ISI has suspended all application fees for Debt Relief Notices, Debt Settlement Arrangements and Personal Insolvency Arrangements as of today until the end of 2015 in a bid to remove perceived financial cost barriers to using the personal insolvency options.

The ISI has also put in place a basic payment scheme for PIPs should creditors reject the Personal Insolvency Arrangement or Debt Settlement Arrangement being proposed where this gives a better repayment return than bankruptcy.

What do these measures mean for the man on the street struggling to pay his bills?

The suspension of DRN, DSA and PIA fees will reduce the overall costs facing debtors already under pressure.  The payment scheme takes the risk out of PIPs accepting cases on the basis the PIP gets paid as part of a successful settlement only.  Effectively this takes the risk out of what has to date become a non fee earning business for registered Personal Insolvency Practitioners and should lead to lower fee scales and in some cases allow zero cost initial work to be carried out. Continue reading →

Irish Water charges explained

Water charges are now in place as of October 1st.  That means every time you boil the kettle, flush the loo or take a shower, you pay for the privilege.
The whole thing has caused some controversy and plenty confusion but we took this helpful advice from The Irish Times’ Conor Pope to help you understand why the charges have been implemented and, most importantly, what it will cost you in the Q&A below.
So what’s it going to cost us?  
Metered rates have been set at €4.88 for 1,000 litres of water – or just under half of one cent per litre – for homes which need both waste and drinking water services. If only one services is needed – if you have a septic tank or private water supply, the rate of €2.44 per 1,000 litres applies. Assessed charges apply to those who do not have meters installed and will be based on the number of people living in a home. It starts at €176 for a one adult home, with an extra €102 added for every additional adult. Children will not be included in assessed charges because they go free. The nearly 1.4 million new customers of Irish Water will pay the assessed charge for the next nine months
Hang on, what if I am on a meter and use less water than the assessed charge?
You will be given a rebate.
How will they know I used less – won’t they have to read my meter today?
No. The meter reading on the last day of every month is automatically recorded and stored for three months so the readers who check your meter at any point between now and Christmas will know what it was set at on day one and make adjustments accordingly.
What about allowances?
Every home gets an allowance of 30,000 litres. Homes with children under 18 will get an additional allowance of 21,000 litres per child.
How much water do we actually use?
Based on international studies, the average person uses about 52,000 litres of water. A typical power shower uses about 80 litres of water a go so if someone has one every day it will cost them 38 cents, or €139 a year. A power shower is the Rolls Royce of showers, however, and should not be confused with a regular electric shower. That uses about 40 litres of water and will cost about €73 a year. Flushing a toilet uses 10 litres of water and if one is flushed 10 times a day, it could end up costing €150 a year. Filling a kettle four times a day will set you back €15 a year.
I still don’t have a meter, when will I get one?
Around 400,000 houses have metres – slightly more than a quarter of all residential properties. An accelerated metering programme is continuing and they will be installed in about 80 per cent of homes by the middle of 2016. Metering of apartments in complexes with a shared water supply has proved difficult but the Department of the Environment is exploring the potential to include a new phase of metering of 48,000 individual apartments. The metering is important because multiple studies show 16 per cent less water is used when metered.
Do I still have to pay for water if it is unfit for consumption?
The Commission for Energy Regulation (CER) has confirmed householders whose water supply is undrinkable will get an immediate 50 per cent discount on their water bills. They will still have to pay for waste water facilities regardless of water supply quality. If you have a septic tanks installed and the water is not drinkable you will not have to pay for any service until it improves.
When will my first bill arrive?
While metering starts tomorrow, Wednesday, the first bill won’t arrive until early January.
I have a medical condition so my usage is to be capped at the assessed rate. What proof do I need of my condition?
None. People will not have to provide evidence of the condition as Irish Water is planning to operate an honour system.
I am renting a house, what do I need to do?
If Irish Water has details of you as a tenant they will already be writing to you and if they don’t know you are renting, then the pack will be addressed to ‘The Occupier’. If a rental property is occupied the tenant is liable and if it is vacant the owner is. Both should advise Irish Water of change of status to the property – the tenant to cease liability, the landlord to take it up. It is important to remember that if you don’t have a PPS number you will not be given an allowance.
What about my holiday home? I am only there three weeks a year?
If you don’t have a metre installed the assessed charge will be €125 a year.
What about leaks?
If a leak is identified in a home by Irish Water after a meter is installed, the customer’s charges will be capped at the assessed level until the leak is fixed. Irish Water has previously committed itself to fixing the first leak free to avoid people paying the price for legacy water issues.
What are the chances of the charges increasing?
All we know about the current pricing structure is that it will last until the end of 2016. After that, who knows. Irish Water says it costs just under €600 per household to provide each home with water – the Government is subsidising the rest. So if that subsidy was to be reduced post 2016 then charges would rise. The average annual bill in the UK is €550, while German water charges can run to more than €700.
When will my first bill arrive?
While metering starts tomorrow Wednesday, the first bill won’t arrive until early January.
And if I don’t pay?
Irish Water says it is precluded in law from disconnecting customers for not paying their water bill. It does, however, allow for the supply to be restricted. It says such restrictions “will only be used as a last resort”.
What if I don’t return my form. How will Irish Water know I exist?
Irish Water will bill you first as ’The Occupier’ and will assume you are a household with two adults which means you pay €278 a year. However, they will also strip you of all the allowances including the allowance of 30,000 litres of free water per household worth €0.48 cent per litre) so your annual bill if you do nothing will be €424.
Can I evade this charge like a TV licence fee by refusing to reveal my identity to Irish Water and by refusing to answer the door if any of its representatives call?
Not for long. Irish Water said they can find out who owns properties using the land register and the owner will be deemed to be the owner occupier and liable to pay the charge. If the property is rented landlords are asked to encourage tenants to register with Irish Water.
Have we not always paid for our water through our taxes?
We certainly have! It costs in excess of €1 billion to maintain our water supply and over the last three decades that money has been coming out of the general exchequer. Now, however there is a new water charge and the money it raises will be used to maintain our water supply instead.
So we can all look forward to a big tax rebate now that a billion euro of general revenue cash has been freed up?
No……

Debt Management or Personal Insolvency Services?

Personal Insolvency services are legal formal agreements to return the client to solvency while debt management services refer to the informal process of negotiation and deal making with creditors on behalf of a client.  Personal Insolvency Practitioners are regulated by the Insolvency Service of Ireland and since late 2013, the Central Bank of Ireland, now regulates debt management services by a stringent authorisation process ensuring any authorised debt management firms offer the highest of service standards to the client.

To date still only a small percentage of Personal Insolvency Practitioners are also authorised by the Central Bank to offer regulated debt management services.  However, given that the legal process of the formal PIA or DSA leaves less in the pot for repayments, more and more creditors are opting for the informal route of Debt Management services.

While every case differs as to what is the optimal solution, It often makes sense to first try the informal route of debt management and failing getting an agreement, then going the formal Personal Insolvency Services route.

Denis Healy Financial Limited is a Personal Insolvency Practitioner regulated by the Insolvency Service of Ireland also authorised to practice as a Debt Management Firm by teh Central Bank of Ireland.

About Protective Certificates

Your Personal Insolvency Practitioner will apply to the courts for a Protective Certificate which offers you and your assets protection from legal proceedings by creditors while you are applying for a DSA or PIA.
In general, a Protective Certificate remains in force for 70 days but it may be extended in limited circumstances.
Once a Protective Certificate has been issued, another cannot be issued for another 12 months.

A Guide to Bankruptcy

So you have exhausted all other avenues such as PIA, DSA solutions and you have been advised to go the route of bankruptcy in Ireland.  Here’s what to expect:  Bankruptcy is a essentially a process where the ownership of an insolvent person’s property/assets  transfers to the Official Assignee (OA) to be sold on by OA for the benefit of the person’s creditors. When the person’s property & assets are sold, the OA will make sure that the proceeds are shared out among the person’s creditors and any outstanding debt thereafter will be written off and you are discharged from bankruptcy after 3 years in Ireland. Continue reading →