Pearse Doherty (Donegal, Sinn Fein)
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736. To ask the Tánaiste and Minister for Justice and Equality the type of services that the vouchers granted under the abhaile scheme entitle a person to; and if he will make a statement on the matter. [27060/17]

Charles Flanagan (Laois, Fine Gael)
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A range of free, independent, professional advice services is available from the Money Advice and Budgeting Service (MABS) under Abhaile, to a person who is insolvent and at risk of losing their home due to mortgage arrears. These include:

- financial advice and assistance from a personal insolvency practitioner (the ‘PIP Service’),

- legal advice and assistance from a solicitor (the ‘Consultation Solicitor Service’),

- help for an unrepresented borrower from a duty solicitor (the ‘Duty Solicitor Service’), and

- legal aid for seeking court review under section 115A of the Personal Insolvency Acts, where creditors have refused a reasonable personal insolvency proposal including mortgage arrears on the borrower’s home (‘the Personal Insolvency Court Review Service’).

It is expected also to offer a financial advice service provided by a panel of accountants (the ‘Accountant Service’).

These professional advice services link with those provided directly by MABS staff, as part of Abhaile - such as financial advice and assistance from a MABS Dedicated Mortgage Arrears adviser, and non-legal information and support at repossession proceedings (the Court Mentor Service).

MABS acts as the gateway to State supports under Abhaile, and will direct the borrower to the services which are relevant to their individual situation.

The services which are provided, based on a ‘voucher’ system, are the PIP Service, the Consultation Solicitor Service, and the Accountant Service. This is to facilitate the borrower being able to choose a professional to advise them, from the panels of experts set up under Abhaile to provide such advice. The Duty Solicitor Service and the Personal Insolvency Court Review Service are structured differently, due to the more specific nature of those services.

The PIP Service includes: a personal consultation with the borrower, obtaining the relevant information on their income, assets and liabilities, preparation of a detailed Prescribed Financial Statement in accordance with s. 50 of the Personal Insolvency Acts, assessment of the borrower's individual financial situation, advising the borrower in accordance with the PIP’s detailed obligations under s. 52 of the Personal Insolvency Acts on the range of options available to resolve their financial difficulties and on the best options available in their individual circumstances (with priority to keeping the borrower in their home), and confirming that advice to the borrower in writing.

The Consultation Solicitor Service includes: consideration of the detailed financial analysis and advice provided by the financial adviser (the personal insolvency practitioner, MABS Dedicated Mortgage Arrears adviser or accountant), a personal consultation with the borrower, provision of independent legal advice on their legal situation, and confirmation of that advice in writing. The advice covers any legal aspects of options identified to resolve their financial difficulties, resolution of any related legal complications, and (where the borrower is facing repossession proceedings) advice on those proceedings – as set out in further detail in reply to the Deputy’s question no. 27063/17.

The Personal Insolvency Court Review service provides civil legal aid to take proceedings to have a personal insolvency arrangement come into force notwithstanding that it has not been approved by a majority of creditors at a creditors meeting or by the sole creditor. It is only available where the application satisfies the “merits” and other criteria laid down in the Civil Legal Aid Act 1995, although the applicant does not have to satisfy the financial eligibility criteria or pay a contribution towards the service. Applications for this service are made to the Legal Aid Board and not to MABS with the proviso that the person applying for legal aid must already have been admitted to the Abhaile scheme by MABS.

In the period 22 July 2016-9 June 2017, Abhaile has already provided borrowers at risk of losing their homes with 5,632 vouchers for financial advice and assistance, and with 1581 vouchers for legal advice and assistance from a consultation solicitor. Legal aid has been approved for 172 personal insolvency court reviews over the same period. These figures cover a total of 4,345 homes.

In addition, in the period 22 July -30 April 2017 (latest data available), a duty solicitor service was provided at 313 Circuit Court repossession lists before the Country Registrar, to assist unrepresented borrowers facing repossession proceedings.