Personal insolvency law must create clear system for debtors

Cover image for 2012 04 17 conf programme_FINAL

FLAC's conference on various aspects of Ireland's forthcoming legislation on personal insolvency, Legislating for personal insolvency in Ireland: International developments and domestic issues, took place in Dublin on Thursday 19 April.Opening the event, Social Protection Minister Joan Burton TD said she would bring the issues raised to her colleagues and that personal insolvency was a major focus for the government.

The event featured Irish and international experts examining the legal issues which arise as Ireland seeks to put systems in place to deal with a crisis in personal insolvency. These include the principles on which insolvency laws should be based, the consequences of such laws for the Irish constitution and the economy, and how repayment and write down mortgage debt is treated in other countries. The debate took place at a time when the IMF/EU troika is examining Ireland's proposed new debt legislation, due at the end of April 2012.

In his address, FLAC's Paul Joyce said that the new law must finally establish a clear and comprehensive system for people who are not able to cope with their debt. The interventions from the international speakers, Professor Jason Kilborn (US), Egil Rokhaug (Norway) and Melina Mouzouraki (Greece), were highly praised by the assembled participants, as were the inputs from Professor Gerry Whyte of Trinity College Dublin and economist Tom McDonnell of TASC.

The panel discussion that closed the event was also widely applauded for the variety and quality of its contributors, who included personal finance journalist Jill Kerby, Ross Maguire SC of New Beginning, Eimer O'Rourke of the Irish Banking Federation, solicitor Barry Lyons, Finola Flanagan of the Law Reform Commission and Colette Bennett of MABS.

The conference was attended by more than 200 people, including money advisors, banking representatives, lawyers and representatives of independent organisations dealing with housing, social justice and poverty.

Background information and resources are available - as well as presentations from the conference speakers - on our campaign page. The conference programme is available in PDF format.(Video clips from the conference will also be available shortly.)

Welcome for Foy compensation, but no substitute for transgender recognition law

Cover image for Transgender Bill promised for year's end

News that the government is considering an ex gratia (voluntary) payment to Dr Lydia Foy is most welcome to all who have supported this brave woman in her struggle for transgender recognition. However FLAC, which has represented Dr Foy in her fifteen-year legal battle, stressed that this is not a substitute for a law to properly recognise this group of people in Irish society. News in March that a transgender woman from outside Ireland had entered a civil partnership here, a de facto recognition of her identity where an Irish person could not get the same treatment, makes the need for legislation all the more pressing. Read more about FLAC's reaction to the news and our proposals around the issue of transgender recognition.

More thought needed for access to justice in legal services reform

Cover image for Legal Services Regulation Bill 2011 submission

Government proposals to change how legal services are delivered in Ireland do not prioritise access to the legal system and thus will not improve the situation for many people, says FLAC.We believe that the Legal Services Regulation Bill is unlikely to increase access to legal services for non-commercial bodies, as it does not reduce legal costs and does not tackle hugely problematic issues like the overloaded courts and the underfunded civil legal aid system.

The Bill, published in late 2011 and currently going through the Oireachtas, consists of the government's proposals on how to reform legal services delivery, including how costs are calculated, how the profession is controlled and how people can become lawyers.

FLAC issued its response to the Bill in February 2012. On Wednesday 21 March FLAC presented an analysis of the Bill to the Joint Oireachtas Committee on Justice, Defence and Equality.

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• The Government-appointed Expert Group on Mortgage Arrears recommended changes to the Mortgage Interest Supplement Scheme in July 2010. However, this recommendation still has to be implemented...
• 6.3% of private residential mortgage accounts are in arrears for more than 90 days (Central Bank, May 2011)
• A new Code of Conduct on Mortgage Arrears outlining how lenders address the issue of mortgage arrears came into effect on 1st January 2011. See FLAC's Factsheet on the Code on our website.
• The Government has issued its 1st report under the UN's Universal Periodic Review process in July 2011, available at http://bit.ly/l59I0P
• 45% increase in debt-related queries to FLAC centres in 2010 compared to 2009.
• State funded Civil Legal Aid is not free-there is always a charge.
• Over 25,000 individuals have not been able to meet their mortgage repayments for 12 months or more (May 2011)
• Some 117 orders for possession of property were granted at the High Court in the first three months of 2011 – almost double the number in the first quarter of 2010.
  
  
• The number of Possession Orders granted in the 4th quarter of 2010 was 119, up from 98 in the 3rd quarter.
• Public interest law is working with the law for the advancement and protection of human rights and for the benefit of disadvantaged people through litigation, law reform and legal education.
• FLAC submits that the Legal Aid Board service should have a ceiling of 4 months on the time which people should have proper access to a solicitor. Reality up to 12 months.
• The Legal Aid Board website has an online indicator which will assist you in finding out if you are likely to be financially eligible for Legal Aid. www.legalaidboard.ie
• The latest mortgage arrears figures from the Central Bank show 44,500 households are in arrears of 3 months of more on their mortgages.
• Council of Europe Report (June 2011) highlights Ireland's lack of legal gender recognition legislation, available at http://bit.ly/jmqFJD
• Nearly 60,000 mortgages have been rescheduled with 40% of these involving interest-only repayments.
• 35,000 people are now over 6 months in arrears on mortgages worth more than €7bn (May 2011)
• FLAC runs specialised advice clinics for Irish speaking and deaf clients. FLAC also has specialised immigration, employment and family law centres. Click "Find your nearest Legal Advice Centre" below.
• In March 2012 4,665 people waiting for a first appointment with a Legal Aid Board Solicitor.
• Complaints made to the Ombudsman in relation to social welfare and other benefits rose 30% in 2010.
• FLAC seeks to highlight the fact that people need legal assistance in order to access justice.
• Civil legal aid and advice covers most civil law matters, including issues relating to family, debt, probate, consumer, contract and negligence.
• According to the Irish Prison Service Annual Report 2010, the number of people jailed for not paying fines was up 91% in 2009
• Approximately 5,800 people are now living in direct provision accommodation, with over 50% of these having been there for 3 years or more.
• FLAC is seeking funding to aid our continuing campaigns and services. Please donate using the button below.
• FLAC received nearly 10,000 calls to its telephone information line in 2010.
• The Irish Times reports that 177 orders for repossessions were approved in the first quarter of 2011 - almost double the amount at this time last year.
• Children constitute over a third of residents in direct provision centres.
• 24% of calls to FLAC telephone information line in 2010 were on family law, compared to 22.1% of calls in 2009.
• Each adult in direct provision receives €19.10 weekly and €9.60 per child; this amount has not increased since 2000.
• FLAC supports over 700 volunteers giving advice all over the country.
• Under the Enforcement of Orders Act, people can no longer be sent to jail for not paying debts, if they are unable to do so.
• Ireland has only ever made 2 collective complaints to the European Committee on Social Rights and the Social Charter
• Between January and March 2011 the demand for legal aid rose 28%.