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Make sense of personal debt

This article is from page 16 of the 2012-09-11 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 16 JPG

MAKING sense of the “Personal Insolvency Bill” and how it will impact on “ordinary people” will be central to a public seminar being organised by Clare MABS and Citizens Information Service.

The seminar will take place tomorrow (Wednesday) in the Temple Gate Hotel Ennis from 9.45am.

The new personal insolvency regime including the reform of bankruptcy law will, in addition to providing new legal remedies, provide a significant incentive for financial institutions to develop and implement realistic agreements to resolve debt issues with their customers.

Legal rights group FLAC (Free Legal Advice Centres) gave a mixed reaction during the weekend to the Government’s launch of a new independent financial advice scheme for distressed mortgage holders, saying it raised many questions.

The scheme, launched by Social Protection Minister Joan Burton on Thursday, will allow mortgage holders in arrears to receive a free consultation with an accountant, paid for by the banks, on their situation. However, FLAC, expressed serious concerns about how the scheme will operate.

FLAC senior policy researcher Paul Joyce, who will adress the seminar in Ennis, said, “While FLAC welcomes any and all measures that will assist people in mortgage crisis, this scheme contains many holes from our perspective. If this scheme is meant to be implementing the Keane Report’s 2011 recommendations, it certainly falls far short of what was recommended back then.

“Where is the initial team of 100 advisors with financial, accounting and legal skills that would liaise with MABS?”

The new arrangement was launched as part of the three-point Mortgage Arrears Information and Advice Service, itself part of the Government’s four-pronged ‘Action Plan on Mortgage Debt’. However, FLAC said the action plan as revealed to date lacks coherence and transparency.

Paul Woulfe, Manager with the Citizens Information Centre in Clare, said, “The Mortgage Arrears Information Helpline, which has been operational since July, provides general mortgage arrears information and guidance to mortgage holders in particular those borrowers who are in arrears or pre-arrears on their residential property. The helpline also refers calls to other services such as the Money Advice and Budgeting Service, free legal aid centres and other relevant services. The helpline number is 0761 07 4050, Monday to Friday 9.30am-5pm.”

Other contributors include Dennis Corbett, Co-ordinator with Clare MABS, who will outline the role of the organisation in managing the Debt Relief Orders and David Williams, JW Williams and Co, who will outline The UK Experience and Personal Insolvency Arrangements. The seminar is free and is open to everyone. To register call 0761 075260 or email ennis@citinfo.ie.

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