More Irish-based EU nationals going bankrupt
Figures from the Insolvency Service of Ireland (ISI) show that, while the number of insolvency agreements declined overall last year, the number of new bankruptcy adjudications increased.
Writing in the body’s annual report, director Michael McNaughton noted that non-Irish EU nationals accounted for 43.5% of bankruptcies last year, compared with 25% in 2024.
The ISI is an independent statutory body established in 2013 to deal with personal insolvency.
It operates operate the system to support the three alternatives to bankruptcy:
- Debt-relief notice (DRN),
- Debt-settlement arrangement (DSA), and
- Personal-insolvency arrangement (PIA).
The ISI also administers the estates of bankrupts.
Insolvency arrangements down
Its report shows that 937 insolvency arrangement were approved – down 21% compared with 2024. PIAs, which deal with mortgage debt, fell by 27%.
The ISI report says that the drop likely reflects a combination of factors, rather than any single issue.
“These may include a gradual reduction in the number of borrowers in long-term mortgage arrears, alongside the possibility that more cases are resolving through bilateral or alternative arrangements before entering the insolvency process,” it states.
Of the borrowers who availed of a PIA, 96% had terms that saw them remain in their family home, while 33% of borrowers had a reduction in their mortgage debt through a write-down of the principal.
Court orders
Section 115A of the 2012 act that set up the ISI provides that a personal-insolvency practitioner (PIP), acting on instruction from a debtor, can make an application for a court order confirming the coming into effect of a proposed PIA that had not been accepted by creditors at the statutory creditors’ meeting.
The annual report shows that section 115A applications fell from 380 in 2024 to 320 last year. Creditors objected to almost three-quarters of applications – up from 66% in 2024.
The ISI says that the higher objection rate suggests that, where cases do proceed to court, they may involve more complex issues.
Bankruptcies ‘relatively low’
The report says that, while total bankruptcy adjudications in Ireland increased by almost 20% compared with 2024, the figures remain “relatively low” compared with pre-2020 levels.
The organisation notes that the main driver of its activity remains the large number of bankruptcy estates adjudicated over the previous decade.
“With a large portfolio of over 1,600 open estates currently under management, the complexities involved can be significant, encompassing ongoing litigation, issues of centre of main interest (COMI), lack of engagement, asset-specific challenges and more,” it states.
The report says that the ISI has been making improvements to its case-management system for bankruptcy, adding that recent amendments to the Bankruptcy Act 1988, which came into effect in February this year, will also increase the efficiency of administration over the coming years.
Cross-border issues
Figures in the report show that 37 of the 85 bankruptcy adjudications in 2025 involved debtors originating from other EU member states (the vast majority from Germany), with all their debt situated outside Ireland.
These debtors represented 43.5% of the total – a marked increase from the figure of 25% of adjudications in 2024.
This has led to an increased number of investigations into assets located outside Ireland and a growing focus on cross-border insolvency issues, according to the report.
The ISI says that it has submitted a list of 44 proposed legislative amendments to the Department of Justice aimed at improving the personal-insolvency process.