Just 64 insolvency practitioners in the country

As thousands of people struggle under the weight of mounting debt, it has emerged that just 64 people are certified to process their claims under the new insolvency legislation.

That is despite the fact that applications for support from the Insolvency Service of Ireland are set to increase rapidly in the days and weeks ahead.

Under the legislation, which came into effect last month, personal insolvency practitioners (PIPs) have the crucial role of assessing insolvency applications from hard-pressed members of the public, taking them through the process, including liaising with the applicant’s creditors and formulating a plan which will help the person work their way out of their difficulties.

When the new legislation came into effect, there were 37 PIPs in place to start assessing applications for personal insolvency agreements.

At the time, Finance Minister Michael Noonan said: “I understand they are training more and there will be several hundred to deal with what is involved in the legislation. I understand the numbers are going to climb very quickly on the practitioners’ side.”

However, according to the list of PIPs on the insolvency service’s website, there are just 64 certified to deal with the public.

Furthermore, they are concentrated predominantly in the country’s larger cities.

There are seven counties which do not have a single practitioner.

The north-west is particularly badly covered. There are just two in Donegal and none in Sligo, Leitrim, or Roscommon.

Brian Walker, a barrister and expert on insolvency, is one of the people who has been training PIPs — his latest course was last week.

He said there are currently more than 100 people, including those already practicing, who he classed as “serious” about becoming PIPs. Those not already certified are still going through the training process. However, he outlined a number of impediments to people taking on the role.

Mr Walker said the application process in itself was time consuming as was the processing of each application from the public once certified. Furthermore he said the start-up required a big investment from a practitioner with outlay including the training up of staff.

The Government’s latest commitment to the troika that it will accelerate repossessions of properties in arrears, particularly the 30,000 buy-to-let properties, is expected to drive even more traffic towards PIPs.

Mr Walker pointed out that a judge is more likely to agree to an adjournment where a PIP was in the midst of processing a debt resolution.

The barrister also pointed out that 17 elements of the insolvency legislation have not yet been signed into law, among them the three discharge period for bankruptcy.

That in itself is likely to force a number of people to opt not to go for bankruptcy at this stage but instead to turn to a PIP to seek out a personal insolvency agreement.