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DSA PROTOCOL AND ISI Q2 STATISTICS PUBLISHED TODAY

• Debt Settlement Arrangement (DSA) Protocol published today
• ISI Quarter 2 Statistical Report published today showing:

- A threefold increase in number of Protective Certificates issued in Q2, compared to Q1
- A threefold increase in number of insolvency arrangements agreed in Q2 compared to Q1
- The number of new bankruptcy cases in Q2 equates to 150% of the number in Q1
- Solutions are reached in 74% of DSA and PIA cases
- ISI dealing with over €0.5 billion of debt so far this year


• DRN, DSA and PIA insolvency arrangements now recognised across Europe

Monday, 14 July 2014: The Insolvency Service of Ireland (ISI) this morning announced three important achievements and updates.

Publication of DSA Protocol
The ISI has today published a Debt Settlement Arrangement (DSA) Protocol.  A Protocol compliant DSA will use agreed documentation, standard terms and conditions and adhere to high level principles set out within it.  The creation of a Protocol involving key stakeholders including debtor representatives, creditors and Personal Insolvency Practitioners is in line with best practice in other jurisdictions.

ISI Director, Lorcan O’Connor, emphasised the significance of this development.  “This Protocol is very important as its existence is expected to result in the faster development of proposals, faster acceptance by creditors and higher acceptance rates by creditors.  In England and Wales, creditor acceptance rates for Individual Voluntary Arrangements, the equivalent to Ireland’s DSA, rose to over 95% when a similar Protocol was introduced there some years ago”.  Mr. O’Connor commended the commitment of those involved in the drafting of the Protocol in just 4 months. 

Quarter 2 Statistical Report released
The ISI’s Statistical Report for Quarter 2 2014 is now available on the ISI’s website. The statistics show a threefold increase in the number of Protective Certificates and insolvency arrangements agreed compared to Q1; an overall acceptance rate of 74% by creditors for DSA and PIA solutions and a significant increase in bankruptcies. Figures also show that the ISI is dealing with over €0.5 billion of debt so far this year.

Commenting on the Statistical report, Mr. O’Connor said that “although the numbers have been low to begin with, they are increasing every month and the trend is moving in the right direction as people become more comfortable with the suite of ISI debt solutions.”

Insolvency solutions now recognised across Europe
The ISI welcomes the recent implementation by the Council of the EU of a new Regulation, which updates the Annexes to the EU Insolvency Regulation.  The update took effect from 9 July 2014.   The DRN, DSA and PIA are now designated as insolvency proceedings which can benefit from cross-border recognition under the Insolvency Regulation.  The new Regulation means that a debtor availing of a DRN, DSA or PIA should gain the same protection against creditors in most other EU countries that they receive in Ireland, subject to and in accordance with the Insolvency Regulation. 

Future developments
This autumn the ISI will launch a new information campaign in an effort to reach out to those struggling with debt and make it clear to them that there is a solution for everyone.  The ISI is currently working on developing a similar Protocol for the Personal Insolvency Arrangement (PIA), which it hopes will be agreed later this year.

Mr O’Connor encouraged anyone with serious debt issues to consult one of the growing network of Approved Intermediaries and Personal Insolvency Practitioners throughout the country. For further information on the debt solutions available visit www.isi.gov.ie, or phone the ISI’s Information Line (076 106 4200).

Details of the new DSA Protocol can be located here Protocol 
A copy of the ISI’s Q2 Statistical Report is available for download here ISI Statistics 2014 Quarter 2 (PDF size 1134KB)

ENDS
For media queries please contact:

Judith Kieran, Ph:086-3687881
John Warren, Ph: 076 106 4248
Email: press@isi.gov.ie

Notes for Editor  15X15