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GRANT THORNTON DEBT Solutions today announced it has submitted its first batch of 20 applications to the Insolvency Service of Ireland (ISI) with the vast majority of cases dealing with families that have children.
These cases have been pre-approved by banks and have now moved to Protective Certificate under the new legislation introduced this year.
This comes after the first debt settlement arrangement was agreed yesterday with a debtor based in the north west of the country. The borrower had 70 per cent of a six-figure debt written off as part of the deal.
Figures from the company show that more than half of the cases were for debts such as mortgage debt while 45 per cent were deals on unsecured debt on personal loans or credit cards.
Handing back the keys
GT Debt Solutions said some 25 per cent of the cases opted to voluntarily hand over the keys of their properties to the bank, allowing them to leave behind an unsustainable mortgage.
Most of the first 20 cases - 85 per cent of them in total – are families with children with the largest proportion married with two children.
The 20 individuals come from a cross section of occupations including public servants, office workers, sales assistants and tradesmen.
GT Debt Solutions said that in the cases of DSAs – where a person has unsecured debt like a personal loan – many of these families are living on less than the reasonable living expenses as pressures from creditors put them under “great financial stress”.
Milestone
Commenting on the first cases today, GT Debt Solutions’ Stephen Tennant said it was an “important milestone” for those looking to avail of the new legislation.
“We can see that the market is now starting to find its feet, and that industry protocol is beginning to develop,” he said. “There is a realisation that the legislation, while not perfect, offers a strong basis for individuals with multi creditor exposures to deal with their financial problems in a systematic fashion.”
The personal insolvency practitioner said more cases will follow closely behind this first batch.
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Hardly a surprise, when it’s the 30-40 something’s, who paid through the nose for hyper inflated, below standard homes.
This generation, with kids has been decimated.
How very sad for those who are loosing their homes as part of this process.
They’re not entitled to free homes just because they borrowed more then they can pay back.
(Also it is lose, not loose.)
Good man Nash. Maybe we should just forbid mortgages totally after all most people cannot say they have a job for life were conditions will never change? Thanks for the English lesson btw.
Forbidding mortgages is a silly suggestion Kerry. What I said is that if you can’t pay your debts, you shouldn’t get a free house.
(Also it is where, not were.)
Overall I think the Personal Insolvency Service is very positive. It allows people who cannot pay their debts to move on with their lives with a clean slate.
I am very much against the taxpayer paying for free houses however.
This logic doesn’t apply to banks? Those that supposedly employ risk analysis but couldn’t be trusted with any more than a five euro note without f**king it up?
‘Also, it’s ”more than they can pay ”, and not ”more then they can pay”.
Look Mr Spelling King, it’s ”more than they can pay ”, and not ”more then they can pay”.
I agree with your rant about the banks Anti_Social. Just because a huge amount of money was wasted bailing them out however does not mean that we should throw more good money after bad.
That will result in everyone paying even more tax just to give some defaulters free houses.
Touché on the spelling btw!
Could you say the same about the financial institutions and property developers who did the same but are allowed to be bankrolled by the taxpayers of the State?
And the vast majority of people did borrow what they could pay back 6-8 years ago………even the ‘stress test’ applied by banks only accounted for an increase in interest rates. Since then the State has increased their tax intake, USC and water charges, utilities have gone up, costs of insurance, driving and healthcare have risen. What was an appropriate level of gross income to mortgage ratio in 2004-208 is not the same as today.
Correct me if I’m wrong but have we not already given the banks the money to cover the cost of bailing out mortgage holders? Think it was factored in when the stress tests were done? Hopefully my spelling is correct this time.
The banks were given money to cover bad debts for failed mortgages. However this only covers their losses after repossessing and selling the house. This does not cover giving the defaulters a free house at the end of the process.
Not quite a bailout for mortgage holders.
The taxpayer already pays for free houses. It’s called social housing.
Families in Debt. It is reasonable to suppose that there are no Bankster, Estate Agents, Priests, or Politicians handing back the keys of their homes. This Government and past Governments have judiciously set out to destroy families with the effective support of their Devoted Voters. The only way to free yourself from the Iron Fist of the monopolising Capitalist is to exercise your right Not to Vote. Already plans are afoot toadopt the Australian model and penalise people who do not approve and have never approved of the criminal cabal that riddle the country with propoganda while inflicting debt burdens on those least able to afford it. Already some ‘evil genius’ has suggested that a substantial fine be imposed on any person who refuses to vote for one of the carefully selected party puppets who run for the rich, in the elections. Stand up now, and refuse to Vote for them. They claim to rule with the consent of the majority. If you do not consent then they cannot continue to lead you and your family to financial and social disaster.
the people who can’t pay mortgages its their own fault,you dont own your house until u make the final mortgage payment,typical Irish,husband and wife 3 or 4 kids wife stay at home mother,hubbie working,hubbie loses job,can’t pay 30year mortgage hubbie and wife divorce,what about people who lose their jobs who are renting?they will be evicted,we never hear anything about them though,the Zionist bankers are laughing
In other words “85 per cent in debt deals”, are the people who can least afford the Government’s Austerity campaign.
The problem lies when parents realise that childcare for 2 kids costs the same as a second mortgage. Unless both parents are earning substantially more than the average wage, it usually follows that mum gives up work or goes part time. So when dad loses his job, the proverbial hits the fan.
We live in a ‘want want want’ society, people believe it’s their right to have kids and as many as they ‘want’.
Unfortunately it’s not always a financially viable decision. We have one. If we had more we would be in an impossible position work-wise for me to continue earning. So we probably won’t have any more. Such is life, you work with what you have.
And Ireland has the highest birthrate in the EU❓❗️
No wonder so many families are in debt.
Well Antonov what else can you do with no work and lots of spare time & no money other than engage in the still free act of sex?
Carcu…the sex might be free. But the resulting consequences aren’t.
Well in that case should the Government not be giving out free condoms or oral contraceptives via the medical card to unemployed?
Or would you prefer to see a communist style one child one family dictate being introduced? Sure if we are doing that why not introduce no legal right to sex for unemployed people or even better forced sterilisation? This measure would even cover the people who on religious grounds object to non-natural contraceptive methods.
Or better still why not just sterilise all children born to non FG party member parents, sure that would stop the population growth in one generation?
With a possible bedroom tax on the way, you will be taxed for the consequences of your activities’ one way or another.
You can’t win with the current elected lot.
Time for change!
These people had jobs and money that they could afford having kids before, so what’s the best thing then, applying one child policy like in china? Economy needs young population as well, that’s one of the reasons that Eastern European countries are in trouble, no emerging or growing market. This is the main problem for German economy and it looks like German economy is not stable in middle and long term.
Gamasello
Shhhhh. The people in power will find you and put away for questioning their rational.
Lol don’t borrow what you can’t afford to pay back,simples.
Some people don’t think things through at all
I wonder is the same percentage of family units with children ‘in general’ also 85%?
Give everyone who needs the option insolvency. They are giving up alot more than the developers who somehow hang on to a salary from nama and a family home as a right.
Just when you think the level of ‘debate’ in the comment section of journal.ie couldn’t sink any lower…..
have your say