Madeleine Reid, Department of Justice and Equality ABHAILE Government support for free advice and help to resolve home mortgage arrears Madeleine Reid, Department of Justice and Equality Anne Marie Cassidy, Department of Social Protection

1. Support for mortgage arrears ‘Strengthening Support for Mortgage Arrears’, March 2015 Personal Insolvency (Amendment) Act July 2015 MABS developed as ‘one-stop shop’ for borrowers in mortgage distress Dedicated Mortgage Arrears (DMA) advisers in MABS offices Court mentor scheme: pilot and roll-out Q3-Q4 2015 Bankruptcy (Amendment) Act December 2015 Scheme for independent financial & legal aid/advice (Nov 2015- July 2016) Programme for Government: Mortgage Arrears Resolution Service (Abhaile) and major communications campaign….

2. Overall objective of Scheme To assist a homeowner who is insolvent, and at risk of losing their home due to mortgage arrears, to access independent expert financial and legal advice and assistance, in order to identify and put in place the best possible solution for them, with priority to remaining in their home where possible.

3. Structure of Scheme… Scheme to operate for 3 years Cross-Government approach: Dept of Justice & Equality, Dept of Social Protection, MABS, Insolvency Service, Legal Aid Board, & Citizens Information Board - all working together on the Scheme Scheme coordinated by Steering Board Also involved: accountancy bodies, Courts Service MABS acts as gateway to the Scheme ….

4. … Structure of Scheme Panels of experts set up under the Scheme: ISI: panel of participating PIPs LAB: panel of participating solicitors DSP/CIB: panel of participating accountants Panel experts agree under Terms & Conditions to provide specified services at fixed price without cost to borrower MABS, as gateway, refers borrower for advice using a ‘voucher’ system: - for financial advice: to a panel PIP, or panel accountant, as appropriate - for legal advice: to a ‘consultation solicitor’ from LAB’s solicitors panel

5. Financial advice/assistance Referral first for financial advice : DMA adviser /PIP prepares borrower’s Standard/Prescribed Financial Statement Analyses situation and possible solutions (personal insolvency, other restructure, bankruptcy…) Advises borrower (a PIP does so under s. 52 of Personal Insolvency Act 2012) Confirms advice to borrower in writing May proceed to negotiate solution on their behalf

6. Legal advice/assistance Three components: Consultation solicitor service - Duty solicitor service at Circuit Court repossession lists PIA Review Service - legal aid for borrower in new Court review under s. 115A Personal Insolvency Acts

6a. Consultation solicitor service Borrower must be referred via MABS MABS provides legal advice voucher Borrower may choose solicitor from panel, subject to availability Solicitor is given copy of borrower’s Financial Statement, and of the financial advice Service = consultation with panel solicitor, plus written advice, in return for voucher

6b. Duty solicitor service … LAB rosters a panel solicitor to attend each Circuit Court repossession list (Co Registrar) Duty solicitor works with the MABS court mentor Aim is to assist unrepresented Scheme borrowers facing repossession proceedings Provides legal assistance - not legal representation …..

6b. Duty solicitor service Counted by day/half-day’s presence - does not need a voucher Ideally, borrowers have already engaged with MABS, received financial and legal advice, well before court date Some have not – Registrar may adjourn, to facilitate borrower receiving advice under Scheme. MABS court mentors can refer – duty solicitor may be able to assist/explain to borrower.

6c. PIA review service S. 115A Personal Insolvency (Amend’t) Act 2015 Court review where creditors refuse a reasonable proposal by borrower for a PIA which includes home mortgage arrears NB! 14 days time limit - NOT EXTENDABLE Statutory role for borrower’s PIP Legal aid possible for review and appeal - fast PIP certifies to LAB that statutory criteria are met and provides Borrower’s MABS Scheme no.

7. Into operation….. Apr/May 2016: PIPs, solicitors panels set up 22 July 2016: MABS Helpline issues first vouchers. PIP financial advice, consultation solicitors, PIA review service all operational Sept. 2016: Duty solicitor service roll-out Oct. 2016: Formal launch of Abhaile Next: Accountants’ panel (finalising) : Communications campaign (CIB), launch end Feb 2017

First results … As of 26 May 2017 – total 7,081 vouchers issued … …covering 4,180 homes. Breakdown: Financial advice: 5,375 Legal advice: 1,541 PIA review legal aid: 165 Averaging total 158 vouchers /week currently Duty Solicitors were rostered for 313 Circuit Court repossession lists over July 2016 to April 2017. 1,028 borrowers were assisted by Duty Solictiors up until the end of April 2017.

First results II First outcomes: - 65% of those seeking Scheme financial advice are in arrears >2 years’ instalments - a personal insolvency proposal was possible in over 2/3 of cases County Registrars may inform repossession defendants about Abhaile Scheme Monitoring for further data on results achieved