Recovering commercial debt in Ireland
Cashflow is the lifeblood of all businesses at all times. Unfortunately problems often arise in obtaining payment from a debtor. There may be purported reasons and allegations for such a delay or it may be just a debtor seeking extended credit terms without agreement.
When these situations occur, you have recourse to pre-legal and legal action to try to recover the money owed together with interests and costs. We can do both, this saves you a duplication of debt company costs and legal costs. It is far more effective and less time consuming. At Regan Solicitors we are experts in all aspects of recovering commercial debt in Ireland.
Regan Solicitors have an impressive track record of recovering debts for Clients and we can bring the same expertise, experience and efficiencies to you. A careful consideration is given to the facts in every case and appropriate strategy advised. One size does not fit all and each matter is different on its own factual history.
Recovering commercial debt in Ireland – The court process
The first step in taking court action to recover commercial debt in Ireland is to determine in which court the proceedings should be brought.
This is dependent upon the amount owed:
- Debts of up to €15,000 are pursued in the District Court. Proceedings start with the issuing of a Claim Notice.
- Debts of €15,001 to €75,000 are pursued in the Circuit Court. Proceedings start with the issuing of an Ordinary Civil Bill.
- Debts of €75,001 and above are pursued in the High Court. Proceedings start with the issuing of a Summary Summons.
As a general rule, there is no court hearing if the claim is undefended, and a Decree (District Court), Execution Order (Circuit Court) or FiFa (High Court) is issued to the creditor for the sum due. 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.
Note that mere obtainment of a court order for the sum owed is no guarantee of actual payment. There is therefore a second stage to the process, governing the enforcement of the order in question.
Recovering commercial debt in Ireland – The enforcement process
The District Court is responsible for the enforcement of all debt-related judgements, regardless of the amount of debt involved.
Before the order can be enforced, it must be served on the debtor, and registered appropriately. Ideally, the debtor will choose to pay in one lump sum to avoid further proceedings. However, this happens on only rare occasions. It is more likely that further court orders will become necessary to obtain payment due, and such orders may include:
- Instalment orders
- Attachment orders
- Committal orders
- Judgement mortgage (in the case of an individual or sole trader, rather than a company)
- Garnishee order (attachment of debts)
- Appointment of a receiver
- Order for possession
- Bankruptcy
The enforcement process can become quite drawn out and frustrating for the creditor, who may still be left without their money even though the court has ordered that it should be paid. Expert and reliable legal advice and action at all stages can smooth the process. That is exactly what we at Regan Solicitors will deliver you if you choose us as your legal team for recovering commercial debt in Ireland.
Just contact us at your convenience for an informative assessment of your case.