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Why won’t the ISI give a breakdown of applications processed, asks IMHO

The Irish Mortgage Holders Organisation says emergency legislation is needed to ensure PIPs are affordable.

THE IRISH MORTGAGE Holder’s Organisation has criticised the newly established Insolvency Service of Ireland, questioning why they have not released the number of applications they have processed to date.

The Irish Mortgage Holder’s Organisation said the “final judgement of success for the ISI will be its ability to strike deals and get struggling debtors through its process in large volumes. However again progress has been uninspired”.

David Hall of the Irish Mortgage Holders Organisation said that the ISI claimed on 1 October that they received 6,000 phone calls and emails and had received 85,000 visits to its website, however they “refused to give a breakdown of the number of applications for debt relief from struggling borrowers in order to protect their confidentiality”.

Confidentiality

David Hall said “the sudden interest in confidentiality by the ISI is very odd given that once a protective certificate is issued it is put on a register and all deals, along with their progress is also placed on a register. Both registers are currently empty”.

The IMHO state that a number of Personal Insolvency Practitioners (PIPs) have confirmed that the ISI have written to all PIP’s advising that protective certificate’s to seek a debt deal cannot yet be applied for.

It is clear that the ISI is not “currently functioning in a meaningful way,” adding that “since throwing open the doors progress has not been stellar,” Hall said.

Proponents of the ISI will say it is early days yet we have had legislation since December 2012 and an Insolvency Service in existence since March 2013.

The fear is that the very real teething problems will be brought into sharper contrast when the deals do actually start to follow through, in whatever volume that is.

Eligiability

He said that one of the main failings that must be dealt with is the strict eligibility criteria. He added:

Grant Thornton estimated in a piece of research that only 1 in 7 people who sought a deal would be eligible to go forward for one.

The Irish Mortgage Holders Organisation estimated that the average family of four would need a net income of €3,000 per month to successfully conclude a deal.

This breaks down as €1,500 for living expenses, €1,000 for rent or a mortgage payment and at least €500 per month of a pot to pay to creditors and pay a PIP’s fees.

However it is in excess of the average household take home pay as outlined by the Irish League of Credit Unions study undertaken in May 2013.

PIPs

According to David Hall, “a pot for creditors smaller than €500 per month gross of PIP fees would be highly unlikely to succeed given the veto that banks hold and the cost to the banks of administering deals once agreed”.

The IMHO said there need to be two changes made immediately.

Hall said that “if we really want to stop the paralysis of debt we need a modern, affordable and fair insolvency system”.

He called for emergency legislation to be introduced making two key changes. Firstly the introduction of public Personal Insolvency Practitioners will provide services to those who can’t afford PIP fees but who may have a chance of reaching an agreement with their creditors.

Secondly, for a period of two years only, a special bankruptcy regime with discharge after one year, should be introduced. This would bring us in line with our neighbors in the UK It would  allow real debt deals to be negotiated with banks and if not successful allowing the borrower apply for a one year bankruptcy period.

Gilmore: Nobody is going to be barred from the insolvency process>

PIP apologises for comments about ‘bigger houses’ for professionals>

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8 Comments
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    Mute Gordon Hughes
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    Jan 5th 2020, 9:04 AM

    Best way to dispose of a Christmas tree is to bring it out your back garden and launch it in your neighbours garden, then act like you know nothing about it if they say anything, this is also a green eco friendly way too as you don’t need to drive anywhere in your car …. Your welcome

    424
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    Mute Fergal O'Hagan
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    Jan 5th 2020, 10:20 AM

    @Gordon Hughes: *YOU’RE

    85
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    Mute Gordon Hughes
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    Jan 5th 2020, 11:16 AM

    @Fergal O’Hagan: you’re boring…. See I learn quickly

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    Mute Fergal O'Hagan
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    Jan 5th 2020, 11:50 AM

    @Gordon Hughes: you are welcome!

    15
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    Mute Gordon Hughes
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    Jan 5th 2020, 4:50 PM

    @Fergal O’Hagan: you are still drab.. I’m flying now

    12
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    Mute Sean Ryan
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    Jan 5th 2020, 9:29 AM

    My local secondary school offers collection and disposal for €10. The boys collect it and the profit goes towards the school football club.

    158
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    Mute Jane Alford
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    Jan 5th 2020, 10:31 AM

    @Sean Ryan: Best to let it completely dry out first…

    6
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    Mute Vladimir Macro
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    Jan 5th 2020, 10:37 AM

    @Sean Ryan: scandalous

    6
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    Mute Wheresmyjumper
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    Jan 5th 2020, 9:17 AM

    I’m throwing mine over the back wall and letting nature take care of it, it’s a tree i reckon driving it to the council drop off would have more of a negative impact on the environment

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    Mute Gordon Hughes
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    Jan 5th 2020, 11:21 AM

    @Wheresmyjumper: I said that already

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    Mute Tim McCormack29
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    Jan 5th 2020, 8:06 AM

    I am going cut it up and burn it in my stove..

    231
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    Mute dublindamo
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    Jan 5th 2020, 9:32 AM

    @Tim McCormack29: didn’t think this type of green tree was good for a stove

    38
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    Mute Gussy Hughes
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    Jan 5th 2020, 10:03 AM

    @dublindamo: Ah damo, it’s only once a year. Everything in moderation!

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    Mute Whoswho
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    Jan 5th 2020, 3:26 PM

    @Gussy Hughes: Who answers all these polls? Get a life!

    1
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    Mute Brendan Doherty
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    Jan 5th 2020, 10:08 AM

    Mine is recycled in the attic ready for next year no harm to the environment at all

    51
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    Mute Marie Louise Ryan
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    Jan 5th 2020, 11:43 AM

    @Brendan Doherty: only its made of plastic

    25
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    Mute Chris lynch
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    Jan 5th 2020, 11:47 AM

    @Marie Louise Ryan: a plastic one is environmentally neutral if you keep it for about 10 years. Wasn’t there an article here about that recently?

    56
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    Mute Colm Curran
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    Jan 5th 2020, 9:52 AM

    I’ll treecycle mine I’ll get my coat

    40
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    Mute Shane Freeney
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    Jan 5th 2020, 9:40 AM

    My Goats are loving it they will be munching for days

    33
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    Mute Aonghus OReilly
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    Jan 5th 2020, 11:47 AM

    @Shane Freeney: You said goatmunching.

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    Mute Eugene Comaskey
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    Jan 5th 2020, 10:29 AM

    Trees melt away after they are felled if left alone , just throw it at the back of the ditch.

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    Mute Liam Mc Meel
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    Jan 5th 2020, 8:07 AM

    No

    20
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    Mute Misty Eyed Mutton
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    Jan 5th 2020, 4:09 PM

    One of my footmen is towing the 60 footer as I type.

    14
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    Mute Datalore
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    Jan 5th 2020, 9:54 PM

    Bound mine in a few black refuse sacks and brought it to Corkagh Park. Looks like a body bag

    5
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    Mute Anthony Mc Donald
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    Jan 5th 2020, 3:50 PM

    I don’t buy fresh Xmas trees have my personal reasons as in environmentally

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    Mute Morning Gus
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    Jan 5th 2020, 10:15 PM

    Why do you want to know this?

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    Mute Garykelly
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    Jan 5th 2020, 10:25 PM

    Yeah we heard you the first time chief

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    Mute Rory M
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    Jan 5th 2020, 11:56 AM

    There is lots of drop of points for old real xmas trees and its usually designated to the corner of a field The Council , corporation , fingal etc all are involved and the shredded trees get re used in the gardening sector , so it makes sense to look up your local authority NO MATTER whether your on Southside, Northside or any part of dublin .
    USE AND RECYCLE

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    Mute Datalore
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    Jan 5th 2020, 9:54 PM

    Bound mine in a few black refuse sacks and brought it to Corkagh Park. Looks like a body bag

    1
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    Mute Datalore
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    Jan 5th 2020, 9:54 PM

    Bound mine in a few black refuse sacks and brought it to Corkagh Park

    1
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    Mute Morning Gus
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    Jan 5th 2020, 11:07 PM

    @Datalore: Come again!!!

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