Accusations that Finance Minister Michael Noonan is a “vulture-fund lover” sparked a major row at the Oireachtas Housing Committee yesterday.

A large number of people in serious financial difficulty likely waited for changes to the country’s bankruptcy laws so as to take advantage of the newly introduced shorter term, according to a bankruptcy specialist.

A large increase in the numbers inquiring about the new bankruptcy regime just weeks after the new one-year term became law shows there is new hope for indebted Irish households, according to an accountancy specialist.

Bankruptcy applications are expected to soar after new rules came into effect reducing to as little as a year the period that employment and credit restrictions apply to bankrupt individuals.

Lorcan O’Connor — director of the Insolvency Service of Ireland — says he expects the numbers applying for bankruptcy to double following the changes made to the bankruptcy regime here last year.

People on low incomes are to have the amount of debt they can get written-off under insolvency rules increased to €35,000.

The number of people dealing with their mortgage debts through the Insolvency Service of Ireland (ISI) has risen in the past year, but the overall figure has been branded “pathetic” by those advocating an overhaul of debt services.

Mortgage debt write-downs are needed to help families trapped in arrears, insolvency experts told TDs.

The Insolvency Service of Ireland has rejected claims that, because there were 162 bankruptcies in the first quarter of this year, its debt-resolution mechanisms are “not working”.

Almost three quarters of people living in insolvency and who have used a personal practitioner to liaise with their creditors have managed to agree a settlement which could leave them debt free.

If a growth in repossessions by the banks is not halted, it could spell real political trouble, according to Kyran Fitzgerald. Revenue is the biggest elephant in the room. It should be compelled to participate

The State agency set up to help free ordinary people from unmanageable debts has a fraction of the clients it expected despite the massive level of household mortgage, loan and credit card arrears in the country.

Irish banks are still engaging in too many short-term solutions to mortgage debt and more should be done to offer long-term sustainable solutions, Central Bank governor Patrick Honohan declared yesterday.

The Insolvency Service of Ireland has admitted it is off to a slow start after it secured just four mortgage write-downs for hopelessly overburdened debtors in its first seven months in operation.

Much higher numbers have been forced to enter bankruptcy because they do not have any excess income above a reasonable standard of living needed to apply for a personal insolvency arrangement, according to a leading insolvency practitioner.

The Government has introduced new bankruptcy laws as part of a personal insolvency regime in an effort to solve the massive mortgage arrears and consumer debt crisis.

As people finally begin applying to the Insolvency Service of Ireland for support in dealing with their mountain of debt, fears have been expressed that the applicants will face fees of up to €3,000 to simply have their application processed.

When President Higgins signed the 2012 Personal Insolvency Act into law on St Stephen’s Day last, it promised a new beginning for the tens of thousands of individuals who find themselves hopelessly in debt, in many cases through no fault of their own.

Debt-ridden householders in the North West are waiting up to five months for an appointment with the State’s Money Advice and Budgeting Service, as it was revealed that Mabs staff will be “floating” between their normal jobs and the soon-to-be-launched Irish Insolvency Service.

The importance of childcare is not adequately recognised in the new personal insolvency guidelines, according to the National Women’s Council, despite assurances that parents will not be forced to quit their jobs.

Justice Minister Alan Shatter said he would “swiftly intervene” and change the laws if the new personal insolvency service was not working properly.

Banks can decide the hours, location, and type of childcare that working parents pay for under the new guidelines on their dealings with distressed mortgage holders.

An average family with two children will be allowed up to €2,094 a month to provide a reasonable standard of living and strike a debt deal with their bank.

The producers of a TV show have offered a lifeline to people swamped by debt.

Lorcan O’Connor has been appointed as the director-designate of the Insolvency Service of Ireland by Alan Shatter, the justice minister.