A new government scheme has been announced which will allow insolvent borrowers seeking a court review under the Personal Insolvency Act 2015 to apply for legal aid. It also aims to aid those who are insolvent and in mortgage arrears to access independent expert legal and financial advice. The scheme will be coordinated by the Department of Justice and the Department of Social Protection, and will also involve other State funded agencies including the Money Advice and Budgeting Services, the Legal Aid Board, the Insolvency Service of Ireland and the Citizens’ Information Board.
The proposed scheme has been welcomed by the Free Legal Advice Centre (FLAC), and is broadly in line with recommendations FLAC has made over the past few years. FLAC Director General Noeline Blackwell looked forward to the proposals filling what has been a “scandalous gap” in the ability of poor people to access justice when at risk of losing their homes. She also pointed out that although the extension of legal aid as proposed here is a positive development, the government must still act to fulfil its pledge from May 2015 with regard to a review of lender failure to cooperate on insolvency arrangements and an enhanced mortgage to rent scheme.
Click here to read more on the proposed scheme.
Click here to read the full FLAC press release.