The ‘Abhaile Scheme’ has been launched by the Department of Justice and Department of Social Protection to help people who are struggling to pay their debts, and are at risk of losing their homes due to mortgage arrears. It aims to provide people with access to independent, expert advice from accountants, personal insolvency practitioners and solicitors – free of charge.
The Scheme itself is being implemented by the Money Advice and Budgeting Service (MABS), working with the Insolvency Service of Ireland (ISI), the Legal Aid Board, and the Citizens' Information Board. A borrower must contact MABS initially, where their needs will be assessed and they will be provided with vouchers for the professional advice required. Priority is given to obtaining financial analysis and advice, but borrowers may also be referred to a consultation with a solicitor for general legal advice. In addition, the Scheme provides for a ‘duty solicitor’ service at all Circuit Court repossession hearings, and can provide further legal aid for the borrower if necessary.
A key challenge, as identified by Minister Frances Fitzgerald, is when borrowers do not engage with the debtors or the courts. This is generally due to anxiety and fear, and the Scheme hopes to provide such people with a realistic and effective solution. Minister Fitzgerald is encouraging people to engage with these services as soon as they can, in an attempt to keep repossessions to a minimum.
FLAC has long called for the remit of legal aid to be widened to include people at risk of losing their home. FLAC’s recommendations can be found in its recent Submission to the Oireachtas Committee on Housing and Homelessness and its report, ‘Accessing Justice in Hard Times’.
Click here to read an outline of the Abhaile Scheme.