Catherine Allison
Teachers and members of the gardaí are among the biggest group of debtors enquiring about bankruptcy, according to a Dundalk-based solicitor.
Cross-border insolvency lawyer Catherine Allison, who is based in Roden Place, told The Irish Independent earlier this week that teachers were among the biggest category of borrowers inquiring about self-made bankruptcy.
Despite the fact most teachers and gardaí have retained their jobs during the recession, their wages are massively down on a few years ago due to additional taxes and cuts and this has meant many have fallen behind on bills.
Ms Allison said that people were opting for bankruptcy because they had no money available for new insolvency arrangements and because many banks were not acting reasonably in negotiations or writing down debts to market value.
“If you don’t have money, you can’t do insolvency,” she said.
Last year, a new insolvency law came into effect, offering a range of possible debt deals for over-indebted borrowers. Bankruptcy fees were also slashed and the discharge period reduced from 12 to three years, paving the way for more bankruptcies.
But many debtors – including the likes of teachers and other public servants – cannot reach deals with their banks or do not meet the minimum income guidelines set down by the Insolvency Service of Ireland, triggering a new wave of bankruptcies.
