Numbers up going bankrupt

DUNDALK-BASED UHY Insolvency has published its annual ‘ bankruptcy report’, showing a growing number of people choosing it as a preferred route out of debt.

UHY Director Eugene McDarby said: ‘While the numbers make for stark reading for banks and borrowers alike, the trend is not surprising. The number of people choosing bankruptcy is up, and bankruptcy continues to cost banks and vulture funds millions of Euro each year. What is surprising is that banks continue to suffer losses of 66% on mortgage loans in bankruptcy when there are personal Insolvency alternatives that would lessen these losses and keep families in their homes.

The UHY Director and APIP chairman added; ‘ Despite new laws limiting the extent of the bank veto, debtors continue to opt for bankruptcy rather than accept bad deals offered by banks.’

He warned that ‘ the government needs to wake up to the realities distressed borrowers are facing dealing with their mortgage lenders. The Abháile scheme provides borrowers free access to PIPs and solicitors nationwide, and borrowers are now engaging with PIPs.

However, without clear pronouncements from government as to how the Personal Insolvency Legislation is to be implemented, up to 85% of borrowers presenting for Government funded PIP advices will not be able to keep their family homes if the banks and vulture funds have their way.’