Experts claim number filing for bankruptcy will double prediction

Financial experts are predicting that the number of people filing for bankruptcy this year will be double that predicted by the Government.

Speaking as its Irish bankruptcy Guide 2014 is launched, debt restructuring expert with Neo Financial Paul Carroll said only 5% of clients that he is acting for will now apply for insolvency, with the remainder opting for bankruptcy, or voluntary arrangements, which they believe is more suitable and an easier process.

Mr Carroll said that while the Government and Insolvency Service of Ireland (ISI) predict there will be 15,000 insolvency cases and 3,000 bankruptcy cases this year, he believes this is going to be the opposite.

“This is because the insolvency process is too difficult to qualify for, is too long and most of all does not give people real relief which bankruptcy will give. Of our current active clients only 5% will go forward for insolvency. We expect about 80% to go through bankruptcy and the remaining 15% will be voluntary arrangements,” he said.

The debt restructuring expert said the bankruptcy guide is designed to dispel “the myths that are attached to the word bankruptcy in this country.”

Mr Carroll said the new bankruptcy regime of automatic discharge after three years and low-cost entry, though not as attractive as Britain, come a lot closer and do provide a solution to ordinary people in debt in Ireland.

The updated Irish Bankruptcy Guide 2014 is targeted at providing information to normal people in financial difficulties which are usually not complex but very stressful.

It outlines the new changes and timelines to the bankruptcy process and details what bankruptcy is about.