In March, 2014 there were 346 Irish debtors brought to the courts by their creditors. The total value of unpaid debts reached €17.6m with an average debt value of €270k.
Irish Bank Resolution Corporation Ltd (In Special Liquidation), Dublin obtained the largest judgment for €2.9m. The judgment was against Donal O’Mahony of 17, Upper Mount Street, Dublin 2.
The Collector General registered 133 judgments valuing €4.5m. The highest judgment registered by the Collector General was against businessman Gerard Herwood, Knockdoe, Claregalway, Co Galway for €458k.
ACC Bank plc, Dublin, obtained a judgment of €746k against Brendan Sheridan of 13, Gleann Aras Drive, Grenagh, County Cork, Mark Hornibrook of 14, Lios na Ri, Grenagh, County Cork and Anthony Hornibrook of 44, Beechrise, Crannard, Pike Road, Fermoy, County Cork, all of whom were trading under the name of Elite Properties were held jointly and severlly liable for €746k.
The news isn’t good for PiPs either – who believe that there appears to be no fee income in the area of debt advice !
The designation Personal Insolvency Practitioner (PIP) is not something earned easily or taken on lightly. Individuals seeking the honour must complete a rigorous, formal education, testing exams, to say nothing of fitness and probity examinations, strict systems and compliance obligations and not insubstantial fees to boot: all of this in pursuit of a living that to date has proved something less than lucrative.
But that is to focus unduly on the monetary rewards aspect of the profession. In fact, the most vocal grievance currently being articulated by PIPs is the fact that their actual description – Personal Insolvency Practitioner – is something of a misnomer. As one disgruntled PIP wryly puts it, the designation should be “P-PIP” – Partial Personal Insolvency Practitioner.
The reason for this is that in fact when it comes to actually working with the over indebted, the hands of the PIP are often so tied as to be useless. The principal cause of this state of affairs is the new Central Bank rules on debt management services that came into effect in October of last year.
Anecdotal evidence from PIPs suggest that a majority of individuals approaching PIPs for their services simply do not qualify for any of the three schemes of arrangement on offer. The chronic personal debt difficulties afflicting the country range well beyond those mired in negative equity. That being the case, PIPs are precluded from offering debt management advice unless they have applied to the Central Bank for authorization.
– a legal update from Holland Condon Solicitors