APIP Survey Reveals 33% Greater Return for Banks through Insolvency Arrangements

Direct Access for Lenders to Housing Authority necessary for Mortgage-to-Rent Scheme Success

APIP are calling for a review of the mortgage-to-rent scheme to allow debtors direct access to housing authorities, following the new insolvency measures announced by the government.  A recent survey conducted by APIP showed that just over half (61.2%) of the insolvency plans proposed were approved at the creditors’ meetings.  The Circuit Court judges will now have the power to approve personal insolvency arrangements that are rejected by the banks.

APIP have been taking steps to streamline the mortgage-to-rent scheme so that families can continue to live in their homes.  In recent months, APIP Chairman, Eric Hendy met Regina Doherty, Fine Gael T.D for Meath East to discuss the social housing provision and the scheme.  “A huge block to the mortgage-to-rent scheme for debtors is that the lenders, and not the borrowers themselves, have to apply to the housing authority and demonstrate that the debtor is in danger of losing his home.  If the mortgage-to-rent scheme is to work, the housing agency should not be concerned about who the proposer is.  The qualification criteria should be income-based only.” said Eric Hendy, Chairman of APIP.   

Recent APIP statistics show that, on average, secured creditors would have received a 33% greater return in a proposed insolvency plan, instead of bankruptcy, had it succeeded.  55% of APIP’s clients petitioned for bankruptcy when the plan failed.  “We expect an increase in the success of insolvency plans following the removal of the bank’s veto, which was a severe restriction for our clients and us, PIPs, as their representatives.  As our statistics show, insolvency plans are often not only a better option for debtors, but for the banks and other creditors too.”  continued APIP Chairman, Eric Hendy.

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For further information and/or to arrange an interview(s) with Eric Hendy, Chairman of APIP, or Tara Cheevers, Secretary of APIP, contact Orla Clancy, Media Consultant, at orla@ocpr.ie or telephone 087 938 8882.

Notes to Editor

APIP

The Association of Personal Insolvency Practitioners (APIP) is the largest representative body of personal insolvency practitioners (PIPs) in Ireland.  APIP members are authorised by the Insolvency Service of Ireland (ISI).  With a current membership of 81, APIP collectively represent a significant number of insolvency clients nationwide who are at various stages of the process. 

Eric Hendy, Chairman of APIP

As the representative for the 81 APIP members throughout Ireland, APIP Chairman, Eric Hendy is regularly engaging with members of the government to progress the insolvency system in Ireland.

Recent meetings in Dáil Éireann include:

• 6 May 2015: Tánaiste, Joan Burton, T.D. and her advisors
• 6 May 2015: Chair of Oireachtas Finance Committee, Liam Twomey, Fine Gael T.D.
• 29 April 2015: Willie Penrose, Labour Party T.D.
• 29 April 2015: Regina Doherty, Fine Gael T.D.
• 24 April 2015: Brendan Howlin, T.D., Minister for Public Expenditure and Reform
• 15 April 2015: Willie Penrose, Labour Party T.D.

Pending Meetings

APIP Chairman, Eric Hendy will continue to meet political figures in the coming weeks and months.

On the 28th January 2015, APIP Committee Member, Mitchell O’Brien presented An Taoiseach, the Tánaiste and the Minister for Justice and Equality, with a proposal to limit the creditor’s veto in PIAs; one of the new measures introduced on the 13th May 2015.

Further Information

2015 APIP Committee

Eric Hendy, Chairman of APIP
Tara Cheevers, Secretary of APIP
Mitchell O'Brien, APIP Committee Member
Steven Curtis, APIP Committee Member
John Kenny, APIP Committee Member
Alan McGee, APIP Committee Member