The family home should have additional protection from seizure by a creditor, according to a consultation paper from the Law Reform Commission.
It is proposing a number of changes in the law on judgment mortgages in a paper being launched by the Attorney General tonight. These arise where there is a contested debt, and the court makes a judgment against the debtor's property. Judgment mortgages are not to be confused with mortgages arising from agreements entered into with lending institutions.
Many of the changes proposed by the LRC are technical ones, intended to clarify the law in this complex area. However, the paper proposes that no order for the sale of a family home, following a judgment mortgage, should be made without a specific court order. The paper also suggests guidelines that should operate if such a sale is ordered.
Up to now, the main protection for the family home against being seized by a creditor was the Family Home Protection Act, which requires a spouse to agree to it being offered as security for a loan.
Consultation papers are issued by the Law Reform Commission as the first stage in stimulating debate on proposed changes in the law.
Following submissions from interested parties, a final report is then prepared and sent to government.