Many dont realise they are broke says irish insolvency service

Many people may be scrimping on food and basics in order to pay bills based on who shouts loudest, according to the Insolvency Service of Ireland (ISI).

As a result, these people can be living below a reasonable living standard – and yet don’t seek help because they don’t see themselves as insolvent, and are committed to paying off their debts themselves.

The ISI has just launched a new website, which sets out the steps that people with financial difficulties can take to ease their burden.

It is one of the measures the ISI has put in place after reviewing the results of research it recently undertook with people who are struggling with debt.

“We met many people w ho didn’t actually realize that they were, in fact, insolvent,” said Lorcan O’Connor, director of ISI, commenting on the research.

“They knew they were struggling. They knew they were making all manner of sacrifices, including on the basics.

“They felt badly for the impact it was having on their children. Yet, the last thing they wanted to do was to turn their back on their debts, or seek help.

“When they come to us, they will have a fresh start with some debt potentially written off, and the remainder at a manageable level.”

Many people, he continued had heard or read that it could cost them thousands of euro to avail of an insolvency solution.

“In order to remove any perceived barrier to seeking help, the ISI has suspended all application fees for debt solutions until the end of 2015,” he stated.

Previously, these fees were €100 for a Debt Relief Notice, €250 for a Debt Settlement Arrangement and €500 for a Personal Insolvency Arrangement.

The ISI’s information campaign, ‘Back on Track’ will feature a new user-friendly website, www.backontrack.ie ; guides to the three debt solutions have been revised and simplified, and the ISI is to host a series of townhall meetings with community leaders in 17 venues around the country.

 

 

 

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