ISI bankruptcy official uncovers €3m in hidden assets in 2023

Insolvency Service of Ireland report shows 72 people were adjudicated bankrupt last year, down sharply on the 2022 figure of 105 people

The circa €3m realised from ‘hidden assets’ last year is half the €6m total from 2022.

Investigations by the official assignee (OA) in Insolvency Service of Ireland (ISI) overseeing bankruptcies last year uncovered €3m in ‘hidden assets’.

That is according to the 2023 ISI annual report, which shows that 72 people were adjudicated bankrupt last year, down sharply on the 105 people adjudicated bankrupt in 2022.

The number of adjudicated bankrupts has declined from 473 in 2017.

The figures also show that 99 people exited bankruptcy last year.

The report states that the integrity of the bankruptcy system depends on bankrupts making full disclosure and co-operating with the official assignee.

The report states that the ISA official assignee “will continue his policy to

vigorously pursue the recovery of assets not declared”.

The report adds that during 2023, four new investigations were undertaken and “in many instances investigations have resulted in the identification of undisclosed assets such as bank accounts, cars, properties, rental income, and transfers of assets prior to bankruptcy and these investigations resulted in realisations of circa €3m in 2023”.

The circa €3m realised from ‘hidden assets’ last year is half the €6m total from 2022.

Last year, assets with a value of €5.69m were realised in 412 bankruptcy estates, with the €5.69m including €2.34m in proceeds from land and buildings.

Transferring assets

Bankruptcy delivers debt relief to bankrupts, while transferring all their assets to the OA.

The report states that in bankruptcies, dividends with a cumulative total of approximately €959,000 were paid out to 65 creditors in 19 cases by year-end.

In his report, director of the ISI Michael McNaughton states that in 2023 “ISI saw an increase in demand for its services, with applications for insolvency solutions, other than bankruptcy, increasing by 20% compared to the previous year, while the number of protective certificates [PC] issued increased by 15%. Preliminary figures for the first quarter indicate this trend is continuing into 2024.” 

The report states that the ISI last year issued 1,325 protective certs, compared to 1,151 in 2022, while personal insolvency arrangements last year increased from 1,034 to 1,181.

The report states that the increase in both applications for insolvency solutions and in approvals of PCs “is attributable to a number of factors including the significant increases in the cost of living, which occurred alongside a steep rise in interest rates”.