Debt Recovery

We fully understand the importance of debt recovery in today’s business environment. As such, We have developed an efficient, cost effective approach to personal and corporate debt recovery that consistently delivers results.

Debt Recovery and Enforcement

We work closely with clients to achieve the best results.  In order to recover debts successfully, we get to know the nature of our clients’ and their debtors businesses to ensure that our clients’ cases are dealt with quickly and at a minimum cost.

Pursuant to the Courts and Civil Law (Miscellaneous Provisions) Act, 2013 the monetary amounts for the jurisdiction of the District Court, Circuit Court and High Court changed on the 3rd of February 2014. Since then the District Court has jurisdiction for debts up to €15,000; while the Circuit Court has jurisdiction for debts between €15,001 and €75,000, and the High Court has jurisdiction for debts in excess of €75,000. In addition to the size of the debt owed the Court venue is determined by where the debtor resides or where the contract that gave rise to the debt was entered into or performed.

To issue proceedings a Claim Notice (District Court), a Civil Bill (Circuit Court) or a Summary Summons (High Court) is served on the defendant debtor notifying him of the creditor’s claim. As a general rule, if the case is undefended, there is no Court hearing and upon lodgement of judgment papers a Decree (District Court), Execution Order (Circuit Court), or FiFa (High Court) for the sum due is issued to the creditor. However if the case is defended, the matter is likely to go to trial or full hearing in Court and the creditor’s witnesses may have to attend to give oral evidence seeking Judgment.

Interest may be claimed at the contract rate in any proceedings’ however where there is no contractual provision the Court may award interest at its discretion.  Once judgment is awarded interest is automatically applied to the Judgement debt at a statutory rate – currently 8%.   In non consumer contracts interest may be claimed pursuant to the Late Payments in Commercial Transactions Regulations on all late payments i.e. interest will run either from the payment due date or 30 days from the invoice or delivery date.  The Regulations provide that unless otherwise specified in an agreed contract, the interest rate will be the European Central Bank main refinancing rate (as at 1 January and 1 July in each year) plus 8 percentage points. Penalty interest due for late payments should be calculated on a daily basis.

Once judgment has been obtained against a debtor, there are a number of avenues open to a creditor to attempt to enforce that judgment including the following:

  • 1. Registering a Judgment Mortgage on the Debtor’s property
  • 2. Lodging an Execution Order with the Sheriff
  • 3. Obtaining an Installment Order against the Debtor
  • 4. Registering the Judgment in the Central Office
  • 5. Obtaining a Garnishee Order directing monies to be paid by a third party are paid directly to the creditor
  • 6. Appointing a Receiver
  • 7. Winding Up of a Limited Company
  • 8. Sequestration
  • 9. Bankruptcy

The above information is a very brief overview of the law relating to Debt Recovery. For more information about Debt Recovery/ Recovery of Monies owed or to arrange a Consultation in Arklow, please contact us.