Donnelly calls for Government to adopt new bill‏

The Independent TD for Wicklow and East Carlow, Stephen Donnelly TD, will call on the Government to introduce new protections for Wicklow’s home owners in the Dáil this morning (Friday).

Stephen Donnelly will be opening the debate on his Family Home Protection Bill, which is based on consultations with home owners in Wicklow struggling under debt, and with civil society groups. He said:

“My Family Home Protection Bill is just 327 words long, but it could provide a core protection for families in Wicklow whose homes are threatened by lenders seeking repossession.

“The Bill will give judges the discretion to stop the banks taking people’s homes. It will allow judges to take certain matters into account when deciding on a case for possession of a family home.

“At present, if a judge at the District Court in Bray or the Circuit Court in Wicklow is faced with a lender seeking to repossess a family home, all the lender has to do is to show that the borrower is in arrears on their mortgage. That’s a default and, once you’re in default, the lender is entitled to take your home.

“I believe that judges should have the authority to examine the case further. The home owner should have the right to be heard by the court. Crucially, the judge should be allow find out if the home owner has made any reasonable offer of repayment on the mortgage, and, if so, what the lender’s justification was for rejecting it.

“This Bill fits hands in glove with the new personal insolvency legislation being proposed by the Minister for Justice, Alan Shatter. If a lender rejects a Personal Insolvency Arrangement and seeks to take the home, which they will have the right to do under Minister Shatter’s legislation, my Bill will allow judges to take that into account, and potentially refuse the repossession.

“We are in the midst of a crisis of mortgage debt, which is getting worse. The latest figures from the Central Bank show that one in twelve mortgages is in arrears of more than 90 days (as of September 2011). At the current rate, the figure will be one in four in just two years. This Bill is a vital part of equipping our society to deal with that.”