Wednesday, 17th October 2018

Gareth Neill speaks to TV3’s Morning Show about the psychology of debt

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If you are experiencing problems with debt then please book a Free Debt Consultation with one of our experienced personal insolvency experts.

Learn about All your options with no obligation or pressure to proceed with any particular solution.

Please use Booking Form  or call us now on 01-902 0478. We will be happy to meet you at a time and place that is most convenient to you.

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RTE Drive Time Coverage of Personal Insolvency Seminars – RTE – 16th January, 2013

RTE’s David Murphy talks to Lorcan O’Connor about personal insolvency.  Skip to 1:16 mins on the RTE player for interview.  Click here to listen

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Dawn of the Deal-Makers – RTE Business Blog – 16th January 2013

By David Murphy, Business Editor

This week came an insight into how the new Insolvency Service of Ireland will operate: it hinges on deal-makers.

When Ireland’s financial crisis first began to detonate, the then Government quickly established Nama to filter out the large property and development loans from the banks.

That was in 2009. In 2013, attention is finally turning to ordinary borrowers.

This week the director-designate of the new Insolvency Service of Ireland, Lorcan O’Connor, made his first public appearance to a gathering of accountants and other professionals. Mr O’Connor is a former director of restructuring at accountancy group Deloitte.

At present he has no permanent offices, no corporate governance guidelines, no IT system, and has only a skeleton staff. He doesn’t even have business cards, he admitted, when I asked for one.

Despite all that, Mr O’Connor appears to be no slouch, and is determined to hit the ground running. He has youth on his side, having graduated from UCD in 1998.

He is working with a small team on a public information campaign which will begin before the end of March. Mr O’Connor hopes to accept applications from over-indebted borrowers in the second quarter of the year.

Before the system of debt settlement arrangements can be put in place, he needs to license his lynchpins: Personal Insolvency Practitioners or PIPs. These are individuals who will propose deals between borrowers and lenders.

Their job will be to advise debtors on their options, and to convince lenders that their suggested proposals are in the best interests of both parties. Mr O’Connor said the PIPs will need “a level of legal background”, they must have commercial acumen and will have to pass fitness and probity tests. But above all, he stressed: “They need to be deal-makers.”

One significant criticism of the new insolvency regime is that the banks will hold all the cards: they will be in a position to veto proposed schemes. Initially, this was the case in Britain when a similar system was established; after a period, however, financial institutions decided it was financially advantageous to co-operate.

But there are other concerns for borrowers hoping to avail of the new service. Firstly, anyone deciding to apply will have their name published on a register, although it won’t contain details of their financial situation.

Secondly, there will be tough rules. In the case of applicants for a Debt Relief Note, which allows a write-off of unsecured debt under €20,000, a borrower cannot be left with disposable income above €60 at the end of each month.

The next six months will be important, and much work needs to be done quickly. It will take longer than this time-frame before it becomes clear whether the new service is working, however.

Crucially for mortgage borrowers hoping for a fresh start, the banks need to co-operate from the beginning. But will they? Read full article

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Insolvency Service to accept debt relief applications within months – Irish Times – 17th January 2013

Ireland’s new Insolvency Service hopes to begin accepting applications from borrowers seeking debt relief in the second quarter of this year, its head Lorcan O’Connor said yesterday.

While there is a “large backlog” of potential cases “it may be a number of months down the road” before the bulk emerges, he told a Grant Thornton-organised seminar on the new personal insolvency legislation.

Mr O’Connor said there would be a public register which would show who applied to the new service.

“There are consequences to availing of one of these schemes, including information being made available to the public and creditors,” he added. While people’s names would be on the public register, their financial situation would not be publicly revealed, he said.

He encouraged members of the public experiencing debt or arrears problems to engage with creditors immediately.

The call came as “psychology of debt” research unveiled yesterday by Grant Thornton showed half of all debtors experience mental health problems, including depression and anxiety. Read full article.

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Video: Thousands who avail of new debt-relief regime ‘will face consequences’ – Irish Independent – 17th January, 2013

Thousands of debtors who are waiting to avail of debt relief under the Government’s new personal insolvency regime will face “consequences”, including being placed on public registers, according to Ireland’s new debt tsar.

In one of his first public appearances, Lorcan O’Connor – Director Designate of the Insolvency Service of Ireland (ISI) – said the Personal Insolvency Act is a “very important step” for Irish society.

But the restructuring and insolvency expert warned that there would be consequences for the large number of debtors lining up to avail of the various debt relief schemes under the new legal regime designed to take debt settlement away from the courts.  Access video and full article

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Understanding the insolvency legislation – Newstalk – 16th January, 2013

Dublin seminars help to explain measures – A chartered accountants and business advisory group have held personal insolvency training seminars to help people understand the new legislation.

Grant Thornton held the first of 5 in Dublin today.

They are set to deal with the issue of personal insolvency – with the passage of legislation through The Oireachtas just before Christmas.  Stephen Tennant is a partner in Grant Thornton Ireland and he explains what it all means.  Click here to listen to the interview

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Grant Thornton kicks off series of seminars on personal insolvency – Business and Leadership – 16th January, 2013

Grant Thornton has held the first of five seminars on the topic ‘Debt is a problem, sorting it out shouldn’t be’ in Dublin today.

The seminar saw delegates discuss the personal insolvency bill, the implications for Ireland and also the results of some ‘Psychology of Debt’ research undertaken by Grant Thornton.

Following the enactment of the Personal Insolvency Bill, Grant Thornton will offer a debt solution service in Ireland, Insolvency Service of Ireland (ISI), building on the work done by voluntary organisations such as Money Advice and Budgeting Service and the Free Legal Advice Centres.  Read full article

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Debtors wracked by depression and anxiety, study shows – Irish Independent – 16th January, 2013

Half of all debtors experience mental health problems such as depression and anxiety,    according to new research conducted by Grant Thornton.

The “psychology of debt” research was unveiled at a seminar outlining the potential impact of Ireland’s new personal insolvency regime.

Lorcan O’Connor, Director Designate of the Insolvency Service of Ireland (ISI), told a GT debt solution seminar that the new law was a “very important step” for Irish society.

But the restructuring and insolvency expert warned that there will be consequences for the large number of debtors lining up to avail of the various debt relief schemes.  Access video and full article

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Facing up to Financial Woes – Business & Finance – 16th November, 2012

Sean Kelly examines the personal insolvency bill to see if it can deal effectively with long-term and unsustainable debt.

The new Personal Insolvency Bill published in June, is a vitally important and complex piece of legislation which is designed to tackle the problem of personal over indebtedness, particularly in relation to unsustainable mortgages debt which represent 70% of the overall personal debt problem.  Read full article

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Personal Insolvency bill to be enacted by Christmas – The Sunday Business Post – 8th November, 2012

The Government’s new personal insolvency bill will pass through both Houses of the Oireachtas and be enacted before Christmas, Minister for Justice Alan Shatter said today. Read full article

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New insolvency legislation fits the Bill – The Independent – 4th November 2012

Mortgage misery will be eased for thousands next month, but only if the banks play ball, writes Stephen Donnelly

This week, the most important piece of legislation to come from this Government reaches report stage in Dail Eireann. It will then do one more lap of the Oireachtas before being passed into law next month. Minister Shatter’s intention for the Personal Insolvency Bill is admirable, but its success requires a fundamental shift from the banks in how they deal with borrowers.

The Bill provides three legal mechanisms. The first is a Debt Relief Notice, allowing for the write-off of unsecured debts up to €20,000 after a three-year period. The borrower must have no assets, no disposable income and no realistic chance of paying off their debts.

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