The Insolvency Service of Ireland is an independent statutory body which was established in 2013 with an objective to "restore insolvent persons to solvency" (1). By analysing data released in their 2019 Q1 Report we have produced a profile of what kind of applicant is most likely to apply to the three different types of solutions: Debt Relief Notice, Debt Settlement Arrangement & Personal Insolvency Arrangement.

Demographic statistics collected by the ISI since it was established in 2013 paints a picture of who is most likely to apply for any of the three types of debt solutions.(2)

Occupation - Private Sector (40%) Status - Married/Civil Partner (63.1%) Age - 45 to 54 (36%) Gender - Male (51.8%) Type of Application - Individual (49%)

ISI Figures Q1 2019:

In Q1 2019 there were 854 new applications, down 14% from the same period in 2018. (2)

Personal Insolvency Arrangements - 717 Debt Relief Notice - 74 Debt Settlement Arrangement - 63

So what is the difference between the three solutions?

Personal Insolvency Arrangement: an insolvency solution for people with unsecured and secured debts (a debt backed or secured by an asset e.g. a housing loan where a house is mortgaged to secure the loan debt). It is a formal agreement with creditors that will write off some unsecured debt and restructure any remaining secured debt, while keeping the person in their home where possible. (3)

Debt Settlement Arrangement: a formal agreement with creditors that allows for some write off of unsecured debt. With this solution a person agrees to pay a percentage of their overall debt over a specified period of time. At the end of that period of time they will be solvent. (4)

Debt Relief Notice: an insolvency solution for people who have a low income, few assets and debts of less than EUR35,000 where it is unlikely that a person will be in a position to repay them and it is unlikely their financial situation will improve in the next 3 years. (5)

Although this is the most common profile one must be prudent to the fact that the type of person who applies to the Insolvency Service of Ireland still varies and it is as important as ever to background any non-corporate customer before extending credit. This can be done through your CRIF Vision-net account using our 'Credit Check Individuals' feature. With 11 individual checks including checks for all three ISI debt solutions.

To find out more about our Credit Check services, simply contact us today on Tel: +353 1 903 2660 or email helpdesk.vision-net@crif.com.

(1) https://www.isi.gov.ie/EN/ISI/PAGES/ABOUT_THE_ISI

(2) https://www.isi.gov.ie/en/ISI/2019%20Q1%20ISI%20Statistics%20Report.pdf/Files/2019%20Q1%20ISI%20Statistics%20Report.pdf

(3) https://www.isi.gov.ie/EN/ISI/PAGES/PERSONAL_INSOLVENCY_ARRANGEMENT

(4) https://www.isi.gov.ie/EN/ISI/PAGES/DEBT_SETTLEMENT_ARRANGEMENT

(5) https://www.isi.gov.ie/EN/ISI/PAGES/DEBT_RELIEF_NOTICE