We are committed to providing a step by step approach in assisting Clients recover their debts. The process commences with an initial demand letter to the debtor and can ultimately conclude with Bankruptcy Proceedings (In the case of Individual) and Petitioning the High Court to have a Liquidator appointed (In the case of a Company).
Bad Debt Recovery Procedure
The Process is as follows:
1. Initial Demand Letter to debtor.
2. Legal Proceedings are issued in either in the District, Circuit or High Court
depending of the amount of the claim - See below for further details
3. Judgment is obtained.
4. The Judgment is enforced by:
5. Registering the Judgment in the Registry of Judgments.
6. Lodging the Judgment with the local Sheriff’s Office.
7. Having the Judgment Mortgage registered on the debtor’s land/ assets.
8. Applying for an Instalment Order.
9. Issuing Bankruptcy Proceedings (Individual)
10. Petitioning the High Court for the purposes of Appointing a Liquidator
The District Court:-
The District Court deals with debts up to €6,348.69. If the amount owed by the Debtor is more than that up to a limit of €38,092.14, proceedings must be issued in the Circuit Court. A Summary Civil Summons is stamped and issued in the District Court and an initial Court date is given. The Civil Summons is then served by registered post on the Debtor at his known address, or, in the case of a Debtor company, to its registered offices.
If the summons is returned undelivered, we will have to apply to Court for an Order for “Substituted Service” permitting us to serve the summons by ordinary post. A private investigator may need to be engaged to ascertain/confirm the Debtor’s correct address prior to the application for substituted service.
If the Debtor receives the Summons (i.e. it is not returned by An Post marked “refused” or “not called for” or “gone away”), then the initial Court date will go ahead on the date provided.
In many cases, once the Debtor has been served with the summons, he may pay the amount owing without delay in order to avoid Court proceedings. If he fails or refuses to pay the amount owing, then we will proceed further with the matter.
If the Debtor sends in a notice of intention to defend, then the claim will be contested and a second Court date will be given for a full hearing of the case. This court hearing will involve both sides giving evidence to support their claim. At that second Court date, the Judge may give his ruling.
If the Debtor chooses not to contest the claim then the case will not be heard and we must then proceed to obtain Judgement against the Debtor. This involves lodging an affidavit of debt and a Decree in the District Court Civil Office and judgement should be obtained within approximately 40 days.
The Circuit Court:-
The Circuit Court deals with debts of more than €6348.69 but no more than €38,092.14. If the amount owed by the Debtor is more than the upper limit, proceedings must be issued in the High Court. An Ordinary Civil Bill is stamped, issued and sent by registered post to the Debtor at his known address, or, in the case of a Debtor Company, to its registered offices.
If the Civil Bill is returned undelivered, we will have to apply to Court for an Order for Substituted Service permitting us to serve the Civil Bill by ordinary post. A private investigator may need to be engaged to ascertain the Debtor’s correct address.
If the Debtor intends to contest the claim, then an Appearance will be lodged in the Circuit Court. The Debtor or Debtor’s solicitor must also lodge a written Defence, setting out basis of how he will contest the claim.
In the event that no Appearance or Defence is lodged, we must then apply for Judgement byDefault of an Appearance/Defence. This is done by lodging an Affidavit of Debt with a Judgement set of documents in the Circuit Court Civil Office.
A court date is obtained by us once the Appearance and the Defence have been lodged by the Debtor or their solicitor. We then serve a Notice of Trial on the Debtor advising him/her/it of the upcoming Court date.
The Court date can sometimes be several months down the line depending on Court scheduling. On the hearing date, both the Creditor and the Debtor will make their cases to the Judge.
The High Court:-
The High Court deals with debts of more than €38,092.14. If the amount owed by the Debtor is below this figure, then proceedings must be issued in the Circuit Court. A Summary Summons is stamped, issued and sent by registered post to the Debtor at his known address or in the case of a Debtor Company, to its registered offices.
If the Summons is returned undelivered; we will apply to Court for an Order for Substituted Service permitting us to serve the Summons by ordinary post. A private investigator may need to be engaged to ascertain/confirm the Debtors correct address prior to the application for substituted service.
If the Debtor intends to contest the claim, then an Appearance will be lodged in the High Court. The Debtor or Debtor’s solicitor must also lodge a written Defence, setting out basis of how he will contest the claim. The Debtor may also make a counter-claim.
In the event that no Appearance or Defence is lodged, we must then apply for Judgement by Default of an Appearance/Defence. This is done by lodging an Affidavit of Debt with a Judgement set of documents in the Judgements’ Office.
Once the Appearance has been entered, we stamp and issue a Notice of Motion and lodge this together with an Affidavit of Debt. This Notice and Affidavit should then be served on the Debtor’s Solicitor. They may then lodge a replying Affidavit, detailing their claim or the basis of their contest.
The hearing will initially be before the Master of the High Court. He will review the affidavits and hear arguments from each solicitor/counsel. He/she will then make the ruling or refer the case for plenary hearing on the consent of the Plaintiff or if the Plaintiff does not consent to a High Court Judge for hearing.
If the case is referred for a plenary hearing, then a Statement of Claim will need to be delivered by us, and the Debtor’s solicitor must then lodge a Defence. A Notice for Further and Better Particulars may also be served prior to the Defence. A new Court date will then be given.