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Applications for legal aid for court reviews of rejected personal insolvency arrangements

A personal insolvency arrangement is a type of solution which allows an insolvent person – a person who is unable to pay their debts as they fall due – to restructure their debts, including their secured debts (such as their mortgage). It must be approved by a qualified majority of creditors at a creditors meeting (or where there is just one creditor, by the sole creditor).

Section 115A of the Personal Insolvency Act 2012 (as amended) provides a procedure whereby a personal insolvency practitioner can apply, on behalf of a debtor, for a personal insolvency arrangement to come into effect notwithstanding the fact that the proposal has been rejected by creditors at a creditors meeting or by the sole creditor. Legal aid is available under the Abhaile scheme for these applications.  Regulation 13(10) of the Civil Legal Aid Regulations 1996 to 2016 provides that the financial eligibility criteria do not apply to such applications, which the applicant makes directly to Legal Services. The merits criteria in the Act do apply. The following guidelines are designed to aid decision makers in deciding whether or not to grant legal aid in such applications.