Nicky McFadden (Longford-Westmeath, Fine Gael)
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To ask the Minister for Social Protection if he will outline recent developments and proposals in relation to tackling the issue of mortgage arrears and personal debt; and if she will make a statement on the matter. [7970/13]

Joan Burton (Dublin West, Labour)
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There is a three-phased approach to provide a comprehensive Mortgage Arrears Information and Advice Service, to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two elements involve the enhancement of the website and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board (CIB), both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears.

The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service.

When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and, if the borrower wishes to avail of this option, then the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice. The independent financial advice is available to all mortgage holders in respect of a mortgage secured on a primary residence who have been offered long-term forbearance options by their lenders. An operating protocol for the provision of this advice has been agreed between the main accountancy bodies and the Irish Banking Federation. To date, some 2,700 accountants have confirmed to their accounting body that they wish to be part of the panel and their details are listed on a county by county basis on the website .

The Personal Insolvency Act 2012 provides new and more flexible options to address the circumstances of insolvent debtors. Among the non-judicial debt resolution processes to deal with personal debt is the granting of a Debt Relief Notice to persons with no assets or no income with unsecured debts of up to €20,000. With the assistance of an approved intermediary, a person may apply for a Debt Relief Notice which will allow for the full write-off of qualifying unsecured debt after a three year supervision period.The Citizens Information Board, which has the statutory responsibility for the Money Advice and Budgeting Service (MABS) has agreed to my request that MABS be an approved intermediary for the purpose of processing applications for Debt Relief Notices. Those who can avail of Debt Relief Notices are typically part of the MABS core client cohort of people on low incomes in debt or in danger of falling into debt.

Sanction has been given for 16 temporary staff to be assigned to MABS for up to 2 years, to establish an Approved Intermediary Service (AIS) for the purposes of processing Debt Relief Notices. An implementation process is underway and the CIB/MABS are working closely with the new Insolvency Service to ensure that the AIS will be operational in time for the establishment of the Insolvency Service.

I am confident that these new developments will provide people with the necessary supports to assist them address their debt difficulties.