Cabinet to discuss mortgage arrears at special meeting

Ministers will sign off on a package of measures to change current insolvency arrangements. 

But Labour demands for a cut in the bankruptcy period to one year has been deferred for further consideration. 

Changes to the practices surrounding mortgage arrears have been months in the making but they will be signed off on this afternoon by the Cabinet. 

There's been criticism of banks having a veto on any proposed insolvency deal so this will be changed to allow an examinership type process appeal of the veto to the courts. 

An overhaul of the mortgage to rent scheme will also be unveiled to allow more of those struggling to pay their homeloans avail of such a scheme. 

Enhancing MABS or the Money Advice and Budgeting Service is also on the cards, as are changes to valuations and calculating income criteria. 

But the proposal from Labour's Willie Penrose to cut bankruptcy from 3 years to 1 has been left out – instead that's being referred to the Oireachtas Finance Committee for assessment – it must conclude that by the summer.