Denis Naughten (Roscommon-South Leitrim, Independent)
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154. To ask the Minister for Justice and Equality her plans to reform the family home repossession legislation; and if she will make a statement on the matter. [32834/15]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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This Government has put in place a number of legislative provisions regarding protection of the family home in cases where repossession of the property is being sought. Section 2 of the Land and Conveyancing Law Reform Act 2013provides that in repossession proceedings involving the borrower's principal private residence, a court may, where it considers it appropriate, or on application by a borrower, adjourn the proceedings to allow the borrower to explore with a Personal Insolvency Practitioner whether a Personal Insolvency Arrangement (PIA) under the Personal Insolvency Act 2012 would enable him or her to resolve their financial difficulties other than by repossession. The section does not apply to investment or commercial properties.

The intention is to ensure that homeowners in mortgage arrears who are at risk of losing their homes are aware of, and have an opportunity to access, the legally protected debt resolution arrangements available under the Personal Insolvency Act, which may enable the borrower to remain in their home while resolving the debt in a sustainable manner.

The borrower may propose a Personal Insolvency Arrangement following a court adjournment as indicated above, or through the main route set out in the Personal Insolvency Act 2012. The Personal Insolvency Practitioner has a range of statutory responsibilities and duties, including advising the borrower on all their options so that they can make an informed decision, and (where a PIA is appropriate and the borrower so instructs) formulating and negotiating a PIA proposal on their behalf.

I should add that the recently enacted Personal Insolvency (Amendment) Act 2015 presents additional options to borrowers struggling to resolve mortgage arrears on their homes, and particularly for those at risk of repossession. It provides at section 21 for the introduction of a new review mechanism, if a borrower's proposal for a Personal Insolvency Arrangement, which includes their home mortgage, has been rejected by creditors. The borrower now has the option, in certain circumstances, of asking the Circuit Court to review the creditors' refusal. Under this new provision, the Court will consider a range of tests set out in the legislation and has power to impose the proposed Personal Insolvency Arrangement on the creditors, where the Court considers appropriate.

The 2015 Act was signed by the President on 28th July, and the necessary changes to Court rules to bring the review mechanism into effect are currently being finalised by the Courts Service.

This important reform forms part of the Government Action Plan on strengthening support to those in mortgage arrears on their homes, announced on 13 May this year. It is designed to ensure that fair and sustainable debt deals are upheld for borrowers who want to work their way out of debt with a view to keeping their homes. It will protect distressed mortgage-holders, and will provide a better balance between the interests of banks, and of those facing unsustainable mortgages.

I have no immediate plans to further amend legislation in this area, but will keep the operation of the law in this area under review.

Finally, I think that it is also important to reiterate the Government's message that independent help and advice is available to borrowers who find themselves in arrears on their homes and who want to reaching a solution to their difficulties: they should engage in this as early as possible, and should make contact with MABS, the Money Advice and Budgeting Service, or with the Insolvency Service of Ireland.