Fianna Fáil has published a Bill aimed at helping homeowners in across the North East who are struggling with household debt. The Bill will establish a Debt Settlement and Mortgage Resolution Office and provide an independent debt settlement system for people struggling with their mortgages and personal debt.
Meath East Senator Thomas Byrne said: “This Bill is realistic set of measures that can make a real difference right away for homeowners in Meath and Louth who are struggling with debt. Under our plan, a person struggling to cope with debt can apply to the new office for a Debt Settlement Arrangement. Following an assessment of their financial affairs, a proposal is made to the person’s creditors. Where 60% of the person’s creditors approve the proposal to restructure the person’s debts, it then becomes binding on all creditors.
“In a separate process involving MABS, a borrower who is deemed to be insolvent can apply to the new office for a Debt Relief Order. Once it is granted, a creditor cannot commence any legal proceedings to recover the debt for the next 12 months. At the end of the 12 months, those debts are deemed to be discharged.
“In relation to mortgages, a borrower may apply to the office for a Mortgage Resolution Order in respect of the family home. The new office has the power to impose a binding Mortgage Relief Order to restructure the mortgage. This will ensure that all mortgage holders in difficulty are dealt with in a fair and consistent way. It means the borrower will be given the space to work through their financial difficulties so that they can retain their family home.
“Right across Co Meath and Louth, many families are really struggling with debt. I believe that all political parties have a duty to come up with solutions to help those who are struggling with high levels of personal debt, and those experiencing difficulties in making their mortgage repayments on the family home. In Fianna Fáil that is what we are doing and I would call on all my colleagues in the North East to adopt the same approach and work together to come up with solutions, rather than play party politics-as-usual.”