Debt collection in Ireland

Debt collection in Ireland begins with an assessment of the debtor’s solvency, industry, business history, documentary evidence of the debt, current court cases and enforcement proceedings, and the ability to challenge the debt. This assessment determines the strategy that will be used on behalf of the client during the collection process.

If the debtor does not have current court cases or outstanding court decisions on debt collection, and he is actively engaged in commercial activities, then it is advisable to use the stage of out-of-court debt recovery.

This stage involves active negotiations with the debtor to reach an agreement to pay the creditor’s claims or other possible settlement options (for example, return of goods, transfer of debt to a third party, exchange of services or goods).

Interaction with the debtor begins immediately after sending the notification by mail, email, telephone or instant messengers. This process involves intensive communication with the debtor in order to apply constant pressure. The main task is to establish contact with key decision makers to achieve speedy debt repayment.

The average time for informal out-of-court collection is up to 60 days (except in cases where an installment plan for debt repayment has been agreed upon). If this stage does not bring the expected results, or after an initial analysis it becomes clear that it is not applicable, you should proceed to recovery through the court.

Before initiating legal action, you should pay attention to the statute of limitations. The limitation period is 6 years. The limitation period is interrupted if the debtor makes any payment in respect of the debt. Payment of interest on a debt is considered as payment of principal. After the interruption, the statute of limitations begins to count again. It is prohibited to change the specified limitation period by agreement of the parties.

Depending on the circumstances of the case and the cost of the claim in Ireland, the following options for judicial debt collection are provided:

District courts hear cases with a claim amount of up to 15,000 euros. The procedure is carried out by filing a notice of claim with the court, after which the court decides to initiate proceedings and serves the defendant with a notice of summons and sets a deadline for filing objections to the claim. If a defendant who has been served with a Notice of Demand in a debt claim does not file an Appearance or Defense within 28 days, the plaintiff may file a motion for judgment in the absence of the defendant. In this case, the court makes a decision without holding a court hearing. If the defendant files an application for appearance or files a written defense to the claim, the court notifies the parties that the case has been scheduled for trial and subsequently considers the case in court sessions. As a result of studying the oral testimony of the parties, written evidence and evidence given under oath, the court makes a decision that comes into force after the end of the period for appealing it. A judgment for the recovery of a sum of money which exceeds €190.46 shall entail interest on the amount at the annual rate prescribed by the Debtors’ Act 1840 until it is satisfied. Interest must be calculated from the date of judgment unless the court orders otherwise.

If the amount of the claim does not exceed 2,000 euros, then the case can be considered in a simplified manner according to the small claims procedure.

Circuit courts are organized on a regional basis and hear cases with claims up to €75,000. Circuit courts also hear appeals from decisions of district courts. Appeals are heard by full retrial and the decision of the District Court is final. The procedure is implemented by filing a civil claim, after which the court serves the claim on the defendant and gives him 10 days to object if he does not agree with the claim. If the defendant does not object to the claim or has not indicated that he intends to defend himself, the plaintiff can obtain a default judgment against the defendant without the need for a trial. If the defendant objects, the court carries out preparatory activities during which efforts are made to resolve the dispute or narrow the scope of issues before the start of the trial. After completion of the preparatory activities, the court schedules a trial, during which it examines the oral testimony of the parties, written evidence and evidence given under oath. At the end of the trial, the court makes a decision, which can be appealed to the High Court within 10 days.

The High Court hears all civil cases, but usually only those cases that cannot be heard by lower courts. If the claim does not exceed €75,000, the High Court may fine the applicant additional legal costs due to the fact that the case was not heard in a lower court. The court also hears appeals from decisions of the Circuit Court. Proceedings in the High Court are initiated by an initial summons, which may be issued summarily without pleadings, but by hearing under oath, and by summons and oral hearings. A summons in a simplified manner is used for cases related to the collection of sums of money. After receiving the summons, the defendant has the right to notify the court and the plaintiff of his intention to defend against the claim. In this case, the case will be considered as a trial. Otherwise, the plaintiff may ask the court to enter a default judgment.

Decisions of the High Court can be appealed to the Court of Appeal within 28 days from the date of signing the challenged decision. The Court of Appeal considers the case in four stages: approval of the list of instructions; consideration of applications; summons to the hearing; consideration of the appeal. At the conclusion of the hearing, judges will either make a decision on the same day (called an “ex-temporal” decision) or make a decision at a later date (called a “deferred decision”). The decision of the appeal court can be appealed to the Supreme Court within 21 days from the date of its issuance if the request for this is granted by the Supreme Court. Generally, in debt collection cases, it is quite difficult to obtain permission from the Supreme Court to hear an appeal, since the Supreme Court concentrates on cases raising important constitutional and legal issues that have far-reaching consequences for individuals and have systemic consequences for the administration of justice as a whole. Decisions of the Supreme Court are final and cannot be appealed.

Once the judgment becomes final, the creditor must obtain a warrant for execution and initiate enforcement proceedings. The order is valid for execution purposes for one year from the date of its issue. A court decision may be brought for enforcement within 12 years from the date of its adoption. As part of the enforcement of a court decision, the creditor’s claims can be satisfied by seizing and writing off funds from the debtor’s accounts; seizure of movable and immovable property of the debtor with their subsequent sale; seizure and sale of securities; arrest and confiscation of company shares; arrest of the debtor.

If the debtor has signs of insolvency, the creditor should consider the option of bankruptcy and liquidation of the debtor. An individual debtor may be declared bankrupt if the amount of debt exceeds 20,000 euros. A company can be forced into liquidation if it is unable to pay its debts. If, in the course of the winding up of a company, it appears that any business of the company was carried on with intent to defraud the creditors of the company or the creditors of any other person or for fraudulent purposes, the court, on the application of the liquidator or any creditor, may, if it thinks fit, declare that any persons who knowingly participated in carrying out the activities in the manner stated above, will be personally liable, without any limitation of liability, for all debts of the company. In addition, any transfer of ownership, delivery of goods, payment, execution or other act in relation to property carried out by the company within 6 months before the commencement of its liquidation, which resulted in the inability of the company to pay debts through the sale of such assets, is considered to be a fraudulent act in relation to to its creditors and is accordingly invalid. As a result of the use of such rules, it is possible to increase the chances of satisfying the creditors’ claims in full if the debtor’s assets are not enough to fully repay the debts.

If you have any questions or need support with international debt collection in Ireland, our company is ready to provide our expert assistance to effectively resolve your financial issue. Contact us to receive additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY IRELAND

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