Written answers

Thursday, 29 June 2017

Department of Justice and Equality

Personal Insolvency Practitioners

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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149. To ask the Tánaiste and Minister for Justice and Equality the procedure persons in mortgage difficulty must go through in order to have their PIP costs covered by the State; if it is permissible for a PIP to charge additional costs once approved; and if he will make a statement on the matter. [30661/17]

Photo of Charles FlanaganCharles Flanagan (Laois, Fine Gael)
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The Government’s Abhaile scheme offers a range of free independent professional advice and help to a person in serious financial difficulty with their home mortgage. These services include free financial advice and assistance from a Personal Insolvency Practitioner (the ‘PIP Service’),

The procedure for accessing help under Abhaile is straightforward. MABS (the Money Advice and Budgeting Service) acts as the gateway to all Abhaile services. To apply, a person can contact MABS, either via the MABS helpline or by calling to their local MABS office. Full details are provided on the MABS website at www.mabs.ie, and the helpline is open 9 am to 8 pm, Monday to Friday.

MABS will check that the person qualifies for Abhaile. He or she is eligible if they are a homeowner, unable to pay their debts as they fall due, and at risk of losing their home due to mortgage arrears.

MABS will also advise them on the help most suited to their individual needs and situation. Where this includes the PIP Service, MABS will provide the eligible person (‘the borrower’) with an Abhaile voucher which they can exchange for that advice and assistance. The borrower can then choose a PIP from the Abhaile panel of participating PIPs, and provides the voucher to the PIP at their consultation meeting.

The PIP Service is a fixed service which includes:

1. a personal consultation with the borrower,

2. preparation of a Prescribed Financial Statement, which is a detailed analysis of the borrower’s income, assets and liabilities, in accordance with section 50 of the Personal Insolvency Acts,

3. assessment of the borrower's individual financial situation,

4. advising the borrower, in accordance with the PIP’s detailed obligations under section 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

5. confirming that advice to the borrower in writing.

A PIP participating in the Abhaile panel has agreed to provide the PIP Service described above for a set fee of €500 (plus VAT if applicable). That fee is paid by Abhaile, in return for the PIP submitting the voucher and evidence of provision of the required service. There is no charge to the borrower.

If the PIP recommends that the borrower apply for a Personal Insolvency Arrangement, and the borrower instructs them to act on their behalf, the PIP will normally have to undertake further work to prepare a Personal Insolvency Arrangement and to seek the agreement of creditors. However, it is expected of all Abhaile panel PIPs that in normal course, PIP fees for any such further work will be charged as part of the terms of the Personal Insolvency Arrangement.

If the PIP recommends that bankruptcy is the best solution in the borrower’s individual circumstances, the PIP will also provide the borrower with the written statement required by the bankruptcy judge, confirming that the borrower has first been advised regarding their options under personal insolvency, as part of the PIP Service.

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