Minister for Justice Frances Fitzgerald has announced a new legal aid program that will support people in mortgage debt and are at risk of losing their homes in Ireland.
According to The Irish Times, the scheme which the Money Advice and Budgeting Service (Mabs) will administer with the help of the Legal Aid Board, has been welcomed by the Free Legal Advice Centre (Flac).
"Until now, there has been a dreadful failure of access to justice for poor people at risk of losing their homes," Flac director Noeline Blackwell said. "This is one of the most significant legal events in any person's life and they should not be left to handle this on their own against powerful, well-resourced lenders."
Insolvency Service of Ireland and the Citizens Information Board will also be involved in this state program, along with many other government agencies.
For a fixed cost, qualified homeowners will have access to legal advice and assistance from solicitors. The Legal Aid Board will be the one to form a panel. Meanwhile, insolvent borrowers will be given assistance and representation at no cost through a "voucher" system.
Elsewhere, the number of permanent solutions agreed via the Insolvency Service of Ireland saw a 70 percent increase in 2015, with four out of 12 rejected decisions already overturned by lenders. According to RTE, 1,700 permanent solutions for debtors were agreed through ISE last year, of which 479 are bankruptcies and 641 are through Personal Insolvency Arrangements (PIA).
The increase comes as the bank's veto over proposed arrangements has been removed and the bankruptcy term has been reduced to one year from the previous three years. The demand will be stronger in the coming months, as predicted by ISI Director Lorcan O'Connor. The figures reflect legislation's inability to deal with mortgage arrears more seriously, said the Irish Mortgage Holders Organization.