Debt Collection
Johnson & Co, Solicitors, Cork offers an effective debt collection & recovery service through the application of the following processes.
Stages of Debt Collection
1. Demand Letter - although not a requirement, it is best practice to give a debtor one final opportunity to make payment or make a proposal. This letter will warn that legal proceedings will be issued unless payment is received within seven days.
2. Issuing legal proceedings - if a satisfactory response has not been received in that period, proceedings can be issued in either the District Court (up to €15,000), Circuit Court €15,000 and €75,000) or High Court (above €75,000), depending on the amount of the debt. The proceedings will either be defended, in which case a judge will decide if there is a valid claim or not, or ignored in which the creditor can seek judgement in default of appearance or in default of Defence provided service can be proved to the satisfaction of the relevant court office.
3. Judgment - if no response is given or a judge deems there to be a valid claim for monies owed, then a judgment against the debtor is issued by the relevant court office. WARNING: A JUDGMENT DOES NOT MEAN THAT THE CREDITOR WILL BE PAID HIS DEBT. HE MUST NOW ENFORCE JUDGMENT
Debt Recovery and Debt Collection Enforcement
a) Enforcement - the Judgment Creditor has a number of options to enforce the judgment. (The Judgment Creditor is entitled to interest at 8% per annum from the date of judgement.)
b) Garnishee / Receiver by Equitable Execution - these orders are available where a third party owes money to the Debtor. The Court can order the third party to pay the money to the judgment creditor instead of the Debtor. Garnishee Order can be obtained where the debt is already due to the Debtor but not yet paid by the third party. Receiver by way of Equitable Execution – This is where the money will become due in the future by the third party to the Debtor.
c) Judgment Mortgage - this judgment can be registered as a mortgage over any land or property owned or part owned by the debtor. It prevents the property being sold and you have the right to have the property sold off and the proceeds used to pay the debt
d) Well Charging Order - a judgment mortgage can entitle a judgment creditor to apply to court to have the property sold to enable the debt to be discharged.
e) Registry of Judgements - all judgments will then appear accordingly in the Gazettes of the Dun & Bradstreet (Stubb’s) and the Irish Trade Protection Association (ITPA).
f) County / City Sheriff - the Sheriff will attempt to seize debtor’s assets to the value of the money owed.
g) Instalment Order (individuals only) - an application is made to the District Court regardless of the size of the Judgment for the the Debtor to be examined as to his means and the Court is entitled to make an order requiring the debt to be discharged in instalments, usually on a monthly basis.
h) Committal Order (individuals only) - an application is made to the District Court for the Committal of the Debtor to prison for failure to comply with an Instalment Order.
i) Bankruptcy - this applies only when the debtor is an individual and the debt is very large. It usually means that the debtor will lose everything he/she owns.
j) Liquidations - the Judgment Creditor may petition the High Court to request the winding-up of the debtor company and that a liquidator be appointed. The Liquidator must then sell all the assets of the company and distribute the proceeds to the creditors.
Johnson & Co can also act as Solicitors for the Family Law Legal Aid Board, so we can offer our services to client’s who qualify under this scheme for state funded representation.
Schedule a phone or face-to-face consultation with an experienced solicitor by calling 021 484 7771 or emailing enquiries@johnsonsolicitors.ie
Debt Collection Fees
Size of debt (Up to €1,000)
- Fee breakdown
- Issue & service proceedings
- €110
- Affidavit of debt, drafting & lodging papers
- €100
Size of debt (€1,001-2,000)
- Fee breakdown
- Issue & service proceedings
- €165
- Affidavit of debt, drafting & lodging papers
- €150
Size of debt (€2,001-3,500)
- Fee breakdown
- Issue & service proceedings
- €190
- Affidavit of debt, drafting & lodging papers
- €170
Size of debt (€3,501-5,000)
- Fee breakdown
- Issue & service proceedings
- €230
- Affidavit of debt, drafting & lodging papers
- €220
Size of debt (€5,001-10,000)
- Fee breakdown
- Issue & service proceedings
- €320
- Affidavit of debt, drafting & lodging papers
- €295
Size of debt (€10,001-15,000)
- Fee breakdown
- Issue & service proceedings
- €365
- Affidavit of debt, drafting & lodging papers
- €350
Please contact our office for debt amounts that are higher that €15,000.
Note that the above scale fees relate to undefended cases. Where a case is defended or contentious, or requires additional input, such as settlement negotiations, our fees will be calculated in accordance with time spent in dealing with the case.
Outlays: These are our professional fees which are separate from and in addition to all relevant and necessary outlays such as agent’s fees, stamp duties, Companies Office search fees and property search fees, etc.
VAT: The above costs are exclusive of VAT @ 23%.
