There was a significant reduction in demand for debt restructuring during the third quarter of 2015, with figures from the Insolvency Service of Ireland showing a fall of 12 per cent in the overall level of arrangements completed.

Overall, arrangements dropped back to 300, as debt relief notices fell by 56 per cent to 51, and debt settlement arrangements reduced by 15 per cent to 64. Personal insolvency arrangements (PIA) however, increased by 35 arrangements to 185.

According to the ISI, creditor acceptance stood at 80 per cent during the quarter.

Lorcan O’Connor, director of the ISI, expects activity to increase over the rest of the year.

“Given the recent increase in the qualifying threshold for DRNs to €35,000 and the new appeals mechanism for debtors, where a creditor has rejected a PIA proposal (expected to be introduced shortly), I expect activity levels in all areas to grow in the coming months,” he said.

However, David Hall, CEO of the Irish Mortgage Holders Organisation, said that the figures are "hugely concerning" describing the work of the ISI as "anaemic".

“The Insolvency Service is not fit for purpose and is not serving the thousands of citizens who are at risk of losing their family home and face homelessness,” he said, adding that of key concern is the decline in bankruptcy figures.

According to the ISI, bankruptcies fell by 39 per cent to just 83 in the second quarter.

However, Mr Hall said that this may be due to “many who should avail of bankruptcy holding back to see if the bankruptcy term will be reduced”. He called for “clarity” on whether or not a one-year bankruptcy term will be introduced.