ISI Statistics Quarter 2 2015isi.gov.ie/en/ISI/ISI_Statistics_2015_Quarter_2.pdf/Files/ISI... · Appendix – Data Tables ... KBC 2 7% AIB 2 6% Ulster Bank 1 5% Bank of Ireland 1

ISI Tackling problem debt, together

ISI Statistics

Quarter 2 2015

Insolvency Service of Ireland – Statistics Quarter 2 2015 Page 2

Insolvency Service of Ireland

Quarter 2 2015

Table of Contents

1 Foreword ............................................................................................................. 4

2 Case Management – DRN, DSA, PIA ..................................................................... 5

2.1 Increase in Protective Certificates and Arrangements ......................................................... 6

3 Percentage of debt to be written off under a DSA or a PIA .................................. 7

4 Creditor Acceptance/Rejection ............................................................................ 8

5 PIP Support Initiative ......................................................................................... 10

5.1 Summary of claims .............................................................................................................. 10

5.2 PIP Support Initiative claims for failed PIAs in 2015 Q1 ...................................................... 11

5.3 PIP Support Initiative claims for failed DSAs in 2015 Q1 .................................................... 11

6 Qualifying Debt – DRN, DSA, PIA ........................................................................ 12

7 Applicant Profile – DRN, DSA, PIA (from 2013 Q4 to 2015 Q2) ........................... 13

8 Bankruptcy ......................................................................................................... 14

9 Regulation .......................................................................................................... 16

Appendix – Data Tables ............................................................................................ 17


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 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.


1 Foreword

I am pleased to publish the statistical report of the Insolvency Service of Ireland (ISI) covering the

second quarter of 2015 (Q2).

This quarter has produced more new cases, more protective certificates and more finalised

arrangements than in previous quarters. However, the number of bankruptcies in Q2 did fall.

Arrangements approved in Q2 are 25% higher than Q1.

Bankruptcy cases are down 43% over the same period.

I am pleased to see that creditor acceptance rates also continue to rise.

Lorcan O'Connor

Director

July 2015

These statistics are for information purposes only. No person should place reliance on the accuracy of the

statistics, nor should they 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 01 April

2015 to 30 June 2015 unless otherwise stated.


2 Case Management – DRN, DSA, PIA

107 97

384

588

0

100

200

300

400

500

600

700

2015 Q2

588 new applications in Q2

DRN DSA PIA Total

0

500

1000

1500

2000

2500

3000

2,521 applications since launch

DRN DSA PIA Total

93

251

344

0

50

100

150

200

250

300

350

400

2015 Q2

344 Protective Certificates in Q2

DSA PIA Total

0

200

400

600

800

1000

1200

1400

1600

1,340 Protective Certificates since launch

DSA PIA Total

117

75

150

342

0

50

100

150

200

250

300

350

400

2015 Q2

342 Arrangements in Q2

DRN DSA PIA Total

0

200

400

600

800

1000

1200

1400

1,163 arrangements since launch

DRN DSA PIA Total


2.1 Increase in Protective Certificates and Arrangements

Since the ISI began accepting applications, Personal Insolvency Practitioners and Approved

Intermediaries have created more than 2,500 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 by Court.

Note: Population data taken from the Central Statistics Office Population of each County and City, 2011 Available on their website at http://www.cso.ie/multiquicktables/quickTables.aspx?id=cna23

10

19 15

64

13

108

18 15

44

9 13

1

12 10

22

9

46

12 13 8

4

19 27

21

30 26

Q2 DRN, DSA, PIA by county

1.83

2.60

1.28 1.23

0.81 0.85

0.72

1.03

2.09

0.94

1.61

0.31

0.63

2.56

1.79

0.69

2.50

1.98

1.70

1.25

0.61

1.20

2.37 2.44

2.06

1.90

1.28

Q2 DRN, DSA, PIA by county (rate per 10,000 population)

http://www.cso.ie/multiquicktables/quickTables.aspx?id=cna23


3 Percentage of debt to be written off under a DSA or a PIA

The three charts below set out the average percentage and the range of debt to be written-off

within DSA and PIA arrangements since commencement. In each case, the arrangement is tailored

to the debtor’s individual circumstances and on completion of the arrangement the debtor is

returned to solvency.

0

50

100

150

200

250

0% >0-10% >10-20% >20-30% >30-40% >40-50% >50-60% >60-70% >70-80% >80-90% >90%

Nu

mb

er

of

Cas

es

Range of secured debt write-off

PIA - secured debt Average write-off per case = 21.0%

0

50

100

150

200

250

0% >0-10% >10-20% >20-30% >30-40% >40-50% >50-60% >60-70% >70-80% >80-90% >90%

Nu

mb

er

of

Cas

es

Range of unsecured debt write-off

PIA - unsecured debt Average write-off per case = 83.2%

0

10

20

30

40

50

60

70

0% >0-10% >10-20% >20-30% >30-40% >40-50% >50-60% >60-70% >70-80% >80-90% >90%

Nu

mb

er

of

Cas

es

Range of unsecured debt write-off

DSA - unsecured debt Average write-off per case = 78.6%


4 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 number of cases that have been unsuccessful.

Acceptance rates in Q2 are higher than in Q1 for both DSAs and PIAs.


DSA PIA Total

YES

YES vote 85.72% 72.11% 75.84%

Alternative solution 0.79% 1.05% 0.98%

Successful outcome 86.51% 73.16% 76.82%

NO

NO vote 11.51% 22.04% 19.15%

Rejected prior to creditors meeting 0.0% 1.05% 0.76%

Protective Certificate expired 1.98% 3.75% 3.27%

Unsuccessful outcome 13.49% 26.84% 23.18%

Yes vote

Alternative solutions

No vote

Rejected prior to creditors meeting

Protective Certificate expired

Creditor acceptance/rejection (from 2013 Q4 to 2015 Q2)


5 PIP Support Initiative

Personal Insolvency Practitioners (PIPs) can, on a quarterly basis, seek a €750 support payment

from the ISI in respect of any arrangement that has been rejected by creditors - on condition that

the arrangement must have proposed a return to all creditors that was greater than or equal to

that which they would receive in bankruptcy. The objective behind this initiative was to

encourage greater engagement between creditors and PIPs. The ISI committed to publishing

details around any claims made under this initiative. Due to the fact that costs incurred by PIPs

are far greater than the support payment available, the ISI is satisfied that PIPs are not encouraged

to progress vexatious cases.

5.1 Summary of claims

This initiative was launched in October 2014. As claims are paid quarterly in arrears, the analysis

that follows is based on 27 cases that correspond to claims made by PIPs for 2015 Q1. The cost to

the ISI to meet these 27 claims was €20,250.

There were 28 such ‘NO’ votes that had a direct influence on the outcome of on the 27 cases. In

making comparisons, PIPs assume that in bankruptcy any secured properties are surrendered to

the secured creditor. The total amount of debt involved in the 27 rejected cases was €12.71

million, an average of almost €471,000 per case.


Tables 5.2 and 5.3 list those creditors whose vote had a direct influence on the outcome of a DSA

or PIA proposal in 2015 Q1. The tables identify the frequency at which creditors exercise their

right to vote against a proposal made by a PIP and as a percentage of their total votes. This

analysis of ‘NO’ votes only covers cases where PIPs have claimed under the €750 PIP Support

Initiative.

5.2 PIP Support Initiative claims for failed PIAs in 2015 Q1

2015 Q1 PIAs Number of ‘NO’ Votes Creditors ‘NO’ votes as a %

of their total Q1 votes1

Pepper Finance 4 36%

Shoreline Residential 2 25%

Permanent TSB 7 18%

Danske Bank 1 17%

KBC 2 7%

AIB 2 6%

Ulster Bank 1 5%

Bank of Ireland 1 4%

Bank of Scotland 0 0%

EBS 0 0%

MARS Capital 0 0%

Tanager 0 0%

Others 1 11%

Totals 21 10%

5.3 PIP Support Initiative claims for failed DSAs in 2015 Q1

2015 Q1 DSAs Number of ‘NO’ Votes Creditors ‘NO’ votes as a %

of their total Q1 votes1

Danske Bank 1 100%

Credit Unions 4 29%

Permanent TSB 1 20%

Bank of Ireland 1 8%

AIB 0 0%

AvantCard 0 0%

EBS 0 0%

KBC 0 0%

Ulster Bank 0 0%

Others 0 0%

Totals 7 13%

1 For example, there were 14 DSA cases where the credit unions’ votes had a direct influence on the outcome of the

creditors meeting. They voted ‘YES’ in 10 and ‘NO’ in 4 of those cases. Therefore, the 4 ‘NO’ votes accounted for 28.57% of the total credit union votes (rounded to 29% in table 5.3).


6 Qualifying Debt – DRN, DSA, PIA

The total debt involved in the 588 new cases created in Q2 is approximately €262 million. You can

find a breakdown of the type of debt in the chart above and the table below.

Type of debt Value of debt (millions) As % of total

PPR Mortgages € 97.302m 37.16%

BTL Mortgages € 87.909m 33.57%

Financial Institutions € 57.815m 22.08%

Trade Creditors € 6.131m 2.34%

Credit Unions € 3.965m 1.52%

Revenue € 3.939m 1.50%

Other debt* € 4.802m 1.83%

Total Qualifying Debt € 261.863m 100.00%

PPR Mortgages

BTL Mortgages

Financial Institutions

Credit Union

Revenue

Trade Creditors Other*

€262 million debt in Q2

*Other debt includes connected creditors, contingent debt, hire purchase, personal guarantees, utilities,

store cards/catalogues and professional fees.


7 Applicant Profile – DRN, DSA, PIA (from 2013 Q4 to 2015 Q2)

Public Sector 10.8%

Private Sector 39.3%

Housewife/ husband

4.6%

Other 2.6%

Retired 2.8%

Self-employed

12.0%

Student 0.9%

Un-employed

27.0%

Occupation Divorced/ Separated

14%

Single 22%

Married/ Civil Partner

63%

Widow/er 1%

Status

18 - 24 0.1%

25 - 34 10.3%

35 - 44 39.9%

45 - 54 31.8%

55 - 64 15.4%

65 + 2.5%

Age Profile of Debtors

Male 53% Female

47%

Gender

Individual (DRN, DSA,

PIA) 56%

Joint (DSA, PIA)

5%

Interlocking (PIA only)

39%

Types of Application

An individual application is an application with a

sole debtor.

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.


8 Bankruptcy

66 98

137 147 162

92

448

254

0

50

100

150

200

250

300

350

400

450

500

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 2015

Bankruptcy adjudications

Secured 89.43%

Unsecured 10.57%

€1.4 billion bankruptcy debt in Q2

The total debt involved in bankruptcy adjudications for Q2 is approximately €1.4 billion. This

is made up of 89.43% secured debt and 10.57% unsecured debt. In the case of secured debt,

it is likely that current market values of securities are significantly below debt levels.


Note: Population data taken from the Central Statistics Office Population of each County and City, 2011

Available on their website at http://www.cso.ie/multiquicktables/quickTables.aspx?id=cna23

1 0

2

7

5

19

4 3

7

3

1 1 2

0 0 1

5

1

4

1 1

3 4

3

8

6

Q2 bankruptcies by county

0.18

0

0.17

0.13

0.31

0.15 0.16

0.21

0.33 0.31

0.12

0.31

0.10

0 0

0.08

0.27

0.17

0.52

0.16 0.15

0.19

0.35 0.35

0.55

0.44

0.20

Q2 bankruptcies by county (rate per 10,000 population)

http://www.cso.ie/multiquicktables/quickTables.aspx?id=cna23


9 Regulation

There are 257 Personal Insolvency Practitioners and Responsible Persons available to meet

debtors, on a face-to-face basis, to solve their debt problems.

51

95

128 138 141 138

143 146

0

20

40

60

80

100

120

140

160

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Personal Insolvency Practitioners

35

55

73

87 94

99 104

111

0

20

40

60

80

100

120

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Responsible Persons

There are currently 146 Personal Insolvency Practitioners on the ISI register.

50 MABS companies and the Irish Mortgage Holders Association (IMHO) have been

authorised as Approved Intermediaries. There are 111 Responsible Persons linked to these

authorisations.


Appendix – Data Tables

Case Management

Bankruptcy

Period Adjudications

2014 Q1 66

2014 Q2 98

2014 Q3 137

2014 Q4 147

2015 Q1 162

2015 Q2 92

2013 58

2014 448

2015 254

Percentage change; latest quarter compared with:

2015 Q1 -43%

2014 Q2 -6%

Total DRN DSA PIA Total DSA PIA Total DRN DSA PIA

2013 Q4 112 0 29 83 11 5 6 1 0 1 0

2014 Q1 315 75 57 183 59 24 35 55 44 6 5

2014 Q2 315 74 56 185 152 46 106 124 67 30 27

2014 Q3 306 76 52 178 180 31 149 131 61 22 48

2014 Q4 395 72 78 245 270 52 218 237 79 39 119

2015 Q1 490 104 92 294 324 90 234 273 101 43 129

2015 Q2 588 107 97 384 344 93 251 342 117 75 150

2013 112 0 29 83 11 5 6 1 0 1 0

2014 1,331 297 243 791 661 153 508 547 251 97 199

2015 1,078 211 189 678 668 183 485 615 218 118 279

Total 2,521 508 461 1,552 1,340 341 999 1,163 469 216 478

2015 Q1 20% 3% 5% 31% 6% 3% 7% 25% 16% 74% 16%

2014 Q2 87% 45% 73% 108% 126% 102% 137% 176% 75% 150% 456%

Case Management Quarterly Statistics

Period

1 New applications adjusted for subsequently withdrawn cases2 'Arrangements Approved' include those approved by creditors and/or by court

Percentage change, 2015 Q2 compared with:

New Applications1 Protective Certificates Arrangements Approved2


Information line and website data table

Period Telephone Emails Website

Visits Total

Contacts Website

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 3,186 1,041 40,737 44,964 248,510 6,639

Q1 2015 4,041 1,169 65,559 70,769 277,346 14,245

Q2 2015 3,043 1,447 42,014 46,504 250,518 9,708

2013 7,114 1,969 116,639 125,722 658,660 38,617

2014 11,365 3,003 143,773 158,141 920,667 35,611

2015 7,084 2,616 107,573 117,273 527,864 23,953

Total 25,563 7,588 367,985 401,136 2,107,191 98,181

Documents

ISI Statistics Quarter 2 2015isi.gov.ie/en/ISI/ISI_Statistics_2015_Quarter_2.pdf/Files/ISI... · Appendix – Data Tables ... KBC 2 7% AIB 2 6% Ulster Bank 1 5% Bank of Ireland 1