The value of bad debt judgments in the Republic rose 56 per cent to €67 million in 2021, according to figures from business information group CRIFVision-net.
The “substantial” €24 million rise last year marked the reversal of a pattern of steady decline in the value of bad debt judgments over the past decade.
However, the number of judgments remained similar to the level seen in 2020, rising just 0.6 per cent to 1,329, it said.
Consumer judgments swelled in value from €37 million to €56 million, while commercial judgments rose from €6 million to €11 million. There was a total of 865 consumer bad debt cases, down from 876, and 464 commercial judgments, up slightly from 445 the year before.
In both consumer and commercial instances, the collector general of the Revenue Commissioners was the top plaintiff.
The average value of bad debt judgments was €50,400 last year. For those that were recorded against individuals, the average stood at €64,700, while for those recorded against companies it was €23,700.
Pandemic drop
Combined commercial and consumer bad debt judgments had dropped 76 per cent in value in 2020, notwithstanding the spike in unemployment and economic uncertainty associated with the pandemic, as State support payments and lenders’ moratoriums helped ease the unprecedented impact of the crisis.
"The suspension of activities during the lockdowns coupled with Government support and moratoriums, are all likely to have significantly contributed to the significant decrease in bad debt, personal insolvency and bankruptcy in Ireland in 2020," CRIFVision-net noted.
The increase in the value of bad debt judgments seen in 2021, therefore, followed one of the lowest levels recorded.
