The volume of enquiries regarding bankruptcy has soared in Donegal since the overhaul of the bankruptcy regime in December, according to bankruptcysolicitor.ie.
The Insolvency Service of Ireland anticipates that bankruptcy cases will double following the shake-up of Irish bankruptcy law - a prediction bolstered by a substantial rise in enquiries, says Letterkenny solicitor Garry Clarke from the fixed-fee bankruptcy firm.
He says: “The number of calls to our offices from people seeking bankruptcy assessment doubled in January and that trend is continuing this month. The sharp increase in enquiries over declaring bankruptcy is a direct result of the long overdue law changes enacted in December.
“It appears that a large number of people finding themselves in serious financial trouble decided to hold off in order to take advantage of the new reforms,” Mr Clarke adds.
The amendments to the Bankruptcy Act offer “a second chance” to the many people who are labouring under unsustainable debt in Ireland, he says.
“Lorcan O’Connor from the Insolvency Service of Ireland is anticipating more than 1,000 bankruptcies in the year ahead – more than double the number recorded last year - and that is largely a result of the changes in legislation which were enacted on Christmas Day.
“The overhaul of the out-dated laws governing bankruptcy has already encouraged more people to seek help and we expect a higher volume of enquiries in the coming weeks and months. We expect more and more people in Donegal and around the country will now turn to bankruptcy to end the torment of unsustainable debt.”
Mr Clarke adds that not everyone who seeks advice on bankruptcy may need to declare bankruptcy.