If a Creditor is owed money, they can request that money, from their Debtor. A creditor should not harass or intimidate the Debtor in pursuit of a debt. Creditors who do so may be exposed to criticism which could undermine their recovery.
The Courts are available to a Creditor seeking repayment. Generally a creditor has six years to enforce a contractual agreement from the date of the contract.
Consumer Credit legislation
Consumer Credit Legislation exists in Ireland. The main legislation is The Consumer Credit Act 1995 and the European Communities (Consumer Credit Agreements) Regulations 2010.
This is a law designed to protect consumers. It regulates certain agreements such as hire-purchase agreements, and other credit related services. It is regulated by the Central bank of Ireland. There is a Director of Consumer Affairs to enforce the rules.
Court Procedures
Court procedures differ depending on the Court.- In the District Court if the amount at issue is under €15,000,
- In the Circuit Court if the amount at issue is under €75,000,
- In the High Court if the amount at issue is over €75,000.
Judgment
If successful, a Creditor obtains a judgment in their favour.Enforcing a Judgment – Types of Enforcement
Statute of Limitations for enforcement of a judgment.Creditors have 12 years from the date of a judgment to enforce the judgment.
1. Registration of a judgment
A Creditor can register a judgment in the Court Office. Judgments from the District Court, the Circuit Court and the High Court may all be registered. Registering a judgment does not directly enforce a judgment. It publicises the fact that there is a judgment registered against a Debtor. The Debtor may find it difficult to borrow once a judgment is registered and it will appear in searches against that Debtor.
Lists of judgments are published by credit reference agencies (for example, in Stubbs Gazette and some newspapers).
Before registering a judgment, the Creditor must inform the Debtor that they intend to register a judgment and give the Debtor an opportunity to pay the debt subject to the judgment.
2. Execution against goods
Execution against goods is one of the main ways of enforcing a judgment. A Creditor may direct the Sheriff or County Registrar to seize the Debtor’s goods and sell them in order to satisfy the debt.
- In the High Court, the order directing the seizure of goods is known as an order of “fieri facias” or “fifa”,
- In the Circuit Court, the order is known as an execution order against goods,
- In the District Court, the court’s judgment or decree itself is sent to the Sheriff or County Registrar for execution.
3. Instalment orders
Instalment orders are governed by the Enforcement of Court Orders Acts 1926 – 2009 and Order 53 of the District Court Rules.
A Creditor may apply to the District Court, in the district where the Debtor lives, to have the Debtor attend the Court in order to establish their means. The Judge may then order payment in full or payment in instalments, taking account of the Debtors’ financial circumstances.
4. Failure to meet an Instalment order
If the Debtor fails to pay an instalment order, the Creditor may seek a committal order. This is an application to Court to commit the Debtor to prison.
5. Attachment of earnings
Attachment of earnings is used only in family law contexts They apply to orders of maintenance of spouses and children.
6. Judgment mortgage
The Creditor may register a charge against a property owned by a Debtor. A Debtor will have to pay off the judgment mortgage when the property is sold.
7. Attachment of a debt/Garnishee
If a Debtor owes money to a Creditor, and a third party owes money to a Debtor, then the Creditor may apply for an order which assigns to the Creditor that third party obligation to the benefit of the Creditor. This is known as a garnishee order. Generally, it is used only in cases where there are no goods to be seized to satisfy the judgment.
8. Appointment of a Receiver
A Receiver may be appointed over assets or over future income such as rents, income of a trust fund or a pension. The law in this area is complex but it seems that a Receiver cannot be appointed over future earnings.
9. Bankruptcy
If the Debtor is unable to pay their debts, they may petition the High Court to be declared bankrupt. Alternatively, the Creditor may apply to have the Debtor declared bankrupt if certain conditions are met.
If you have any queries as to enforcing a debt or are subject to an enforcement application please do not hesitate to contact Setanta Solicitors (info@setantasolicitors.ie).
Note: This blog post is for information purposes only and does not constitute legal advice.
