Due to the collapse of the Irish economy and the worldwide recession, credit control and debt collection from creditors has never being so important. Due to the credit crunch, banks have either withdrawn or reduced credit facilities to business and the impact has led to firms and businesses being unable to discharge their debts in a timely fashion due to reduced cash flow. This means it is harder and harder to get paid for works done.
This is a time for careful credit control and Moran & Ryan can assist you with debt collection services.
Jurisdiction & Costs:
The monetary jurisdictions of the Irish Courts are currently as follows:
- District Court – Claims Up to €15,000
- Circuit Court – Claims between €15,000 & €75,000 in value
- High Court – Claims for a value of more than €75,000
Steps in Debt Collection
Step 1 -Demand Letter (7 day or 14 day)
We will issue this on the first day that we receive instructions. If no response is obtained from this letter then we proceed to Step 2.
Step 2 – Issuing Legal Proceedings in Court.
Once we know the amount of the debt due, that will determine which Court (District, Circuit or High) to issue proceedings in.
Step 3 – Enforcement of the Debt and options to enforce the Debt
Once Judgment is obtained against the Debtor, it needs to be enforced.
Options for Enforcing Judgment
- Register a Judgment in the Registry of Judgments – all judgments will appear accordingly in Stubbs Gazette
- Lodgement of Judgment with Sheriff
- The Sheriff will attempt to seize any of the debtor’s assets. Proceeds from the sale of assets to cover the money owed will go to you via your solicitor.
- Judgment Mortgage – This judgment can be registered as a mortgage over any land or property owned or part owned by the debtor. It prevents the property being sold and you have the right to have the property sold off and the proceeds used to pay the debt.
- Instalment Order – Depending on the financial circumstances of the debtor a Court Order can rule that a debt maybe paid off in instalments.
- Bankruptcy – This applies only when the debtor is an individual and the debt is very large. It usually means that the debtor will lose everything they own. Currently in Ireland someone must remain an undischarged bankrupt for five years.
- Garnishee Order – If you are aware of third parties who owe debts to party you are seeking repayment from, in certain circumstances a Court Order can be granted ordering the third party to pay you the creditor directly in the amount of your debt.
Enforcement against Companies
In relation to enforcement against Companies a debtor has the additional option to Petition the High Court for winding up (liquidation) of the company on the grounds of insolvency. A 21 day notice is issued and if no response the you a petition is filed in the High Court to request the winding-up of the debtor company. If successful a liquidator is appointed who will then sell or other realise all the assets of the company and distribute the proceeds to the creditors.
Our experienced debt collection team acts at all levels of debt collection and in all courts. We robustly defend the interests of our Clients in the recovery of debts. Our fees are nonetheless very competitive and our service is friendly. We are happy to advise as to the best option for debt recovery in any situation. We provide you with a cost quotation and a letter which will set out the procedures on the day we receive your instructions.