Who is eligible?
You will be eligible for advice and assistance under the Scheme if:
- You are insolvent – this means that you are unable to pay your debts in full as they fall due and
- You are in mortgage arrears on your home and
- You are at risk of losing your home (for example, if your mortgage lender has initiated repossession proceedings or indicated that they plan to do so; if they have said that they consider you to be non-cooperating; or if they have asked you to consider selling or surrendering your home)
However, even if the above conditions are satisfied, you will not be eligible for the Scheme if your home is disproportionate to your reasonable living accommodation needs, as set out at section 104 of the Personal Insolvency Act 2012.
If your mortgage arrears relate only to a buy-to-let property, you are not covered by the Scheme. However, if you are in mortgage arrears on your home, and you also own a buy-to-let, you will still be eligible if you satisfy the above conditions.
You are eligible for the Personal Insolvency Court Review Service under the Scheme (see below) if you are insolvent and in mortgage arrears and your creditors have rejected your proposal for a Personal Insolvency Arrangement (PIA) that included your home.