Debt Collection

Cash flow is the lifeblood of business. Not getting paid for your work can put a serious strain on any business.

If you feel that you are getting the run around from someone who owes you money, then it might be time to consider engaging our firm’s debt recovery services.

We have a wealth of experience as debt recovery solicitors having acted for businesses both large and small. We have acted for financial institutions, SMEs, management companies and multinationals in the District Court, Circuit Court and High Court.

There are a number of factors to consider when assessing if the debt you are owned is worth trying to recover such as:

It the debtor a person who cant pay or won’t pay. There is little point in suing a person who is a man of straw or an insolvent company as this will simply be throwing good money after bad as well as taking up more of your valuable time and energy however you should make a through investigation.

Is the debtor a limited liability company or a natural person? If you are extending credit terms to a limited company you should always consider getting the directors of the company to sign a personal guarantee particularly if the amount of credit being extended is considerable relative to the size of your business. If a limited company is in financial difficulty then you can be sure you are not the only one owed money.

Depending on the level of the debt it may be uneconomical to spend money chasing it.

The Procedure:

The first step in the legal process is to issue what is known as a letter of demand, which basically calls on the debtor to pay the monies due within seven days or you will be seeking to recover your debt by bringing them to court.

If no response is received to this demand letter then you will need to consider your next steps. What court you bring your case in will depend on the amount of money outstanding.

The District Court deals with amounts from €1 – €15,000

The Circuit Court deals with amounts from €15,001 – €75,000

The High Court deals with amounts above €75,001

Once judgement has been obtained you then have to consider your enforcement options which can include any or all the following:-

• Publishing the judgement.
• Sending the judgement to the sheriff for enforcement.
• Installment Orders and Committal Process.
• Judgement Mortgages.
• Garnishee Application.
• Applying to Court to have the debtor declared bankrupt.
• Winding up a limited company.

Please contact Cairbre O’Donnell of our offices if you would like to arrange a consultation to discuss a particular case or get details on our costs. We can also meet you at your place of business if this is more convenient.