The Debt Collection Legal Process

 

Initial demand letter to debtor

This letter will threaten legal proceedings unless payment is received within 7 days.

 

Issuing legal proceedings

If a satisfactory response hasn't been received in that period, 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 up, ignore the notice or decide to fight the case.

 

Judgement

If no response is given either way, then a judgement (a sworn statement outlining the debt owed and by whom) against the debtor is issued.

 

There are several options for enforcing this judgement

 

- Registered in the Registry of Judgements

All judgements will then appear accordingly in the Gazettes of the Dun & Bradstreet (Stubb's) and the Irish Trade Protection Association (ITPA).

 

- Lodgement of Judgement with Sheriff

The Sheriff will attempt to seize 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 he/she owns.

 

Liquidation

Applies to companies. A 21 day notice is issued and if there is no response the you may petition the High Court to request the winding-up of the debtor company an a liquidator to be appointed. The Liquidator must then sell all the assets of the company and distribute the proceeds to the creditors.