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| Debt Collection |
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Non-payment, or excessively delayed settling of accounts can seriously damage profitability and it is becoming increasingly difficult for small business to manage bad debts.
Our policy is to advise our clients to allow us to proceed to judgement for unpaid amounts as soon as possible. The reason we do this is because judgement against a debtor opens a range of additional options for enforcement which are not otherwise available to a creditor.
There are a number of steps involved in debt collection which include:- |
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| Initial demand letter to debtor |
This letter will threaten legal proceedings unless payment is received within ten days.
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| Issuing legal proceedings |
| If a satisfactory and timely response is not received, proceedings are issued in the District, Circuit or High Court, depending on the amount of the debt. The debtor has more time to respond and will either pay what is owed, ignore the notice or decide to fight the case. |
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| Judgement |
We advise our clients to allow us to proceed to judgment against debtors for unapid amounts as soon as possible.
If no response is received, then a judgement against the debtor is obtained by default, on presentation to the appropriate court office of proceedings and an Affidavit of Debt.
Once a creditor obtains a judgement, a number of additional remedies are available. We then assist our clients by advising on and subsequently implementing the remedy which is most appropriate in each case. Enforcement may, therefore, be by one or more of the following means: |
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| Registration in the Registry of Judgements |
| All judgments obtained by us are published in the Gazettes of t Dun & Bradstreet (Stubb's) and the Irish Trade Protection Association (ITPA). |
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| Lodgment of Judgement with Sheriff |
| The Sheriff is requested to seize debtor's assets. Proceeds realised from the sale of assets seized to cover the money owed are paid to your solicitor. |
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| Judgement Mortgage |
| A judgement can be registered as a mortgage over any land or property owned or part-owned by a debtor against whom judgement is obtained. You have the right to issue proceedings to effect a sale of this property so that the proceeds of sale may be used to pay the debt. |
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| Instalment Order |
| Depending on the financial circumstances of a debtor and on application by us on your behalf the District Court can rule that a debt is paid off in instalments once a debtor is properly examined before the Court as to his / her means. |
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| Bankruptcy |
| This applies only when a debtor is an individual. Bankruptcy proceedings are commenced in the High Court. |
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| Liquidation |
This applies to limited companies. A 21-day notice is issued and if there is no response, a petition is presented to the High Court to request that the debtor company is wound-up and a liquidator is appointed.
Garnishee and appointment of a receiver by way of equitable execution.
It is sometimes possible on application to the Court to intercept monies payable to a debtor from a third party in satisfaction of part or total payment of an amount due to a judgement creditor. |
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| Your contact: |
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To discuss in further detail the possible advantages and disadvantages of these remedies in the context of your own situation, please contact: |
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