Record number of bankruptcy cases for NEO Financial SolutionsMonday 19 May 2014 13.37
A company which advises distressed borrowers said eleven of its clients were made bankrupt in the High Court today.
Neo Financial Solutions said it had now handled 40 bankruptcy cases since the new legislation was introduced earlier this year.
It said of the eleven people who declared bankruptcy today, two people had already surrendered their home, two people are still in their home but expect to lose it in the future and the remaining seven will all retain their family home.
The company said today's cases saw a total of €7.8m debt brought to the bankruptcy court. €6.7m (85%) of this was mortgage debt and €1.1m (15%) was unsecured debt.
Of the mortgage debt of €6.7m, 70% will have to be written off by the banks. All of the unsecured debt of €1.1m was written off.
"All of our clients have been under tremendous stress and this is the end of the debt road for them. They can put the stress and the health issues which come with debt behind them. This is not only good for the debtors but it is good for society as a whole," commented Jane Carroll, from Neo Financial Solutions.