In these tough economic times debt recovery has become an essential life line for many businesses. Traditionally few were inclined to use the court system to pursue debts owed. Nowadays however there are few businesses that can afford to write off debts and the practice of recovering monies through the court system is becoming much more commonplace. Granted it is usually the last resort but it in difficult times it can be a survival mechanism for many businesses. When you are considering recovery of debt it is important to be aware that there are legal costs involved. We offer a very cost effective pricing structure for debt collection. We are more than happy to discuss our fees with you.
If you decide to pursue a debt through the court system the following process and costs are what you can expect where the matter is not contested by the creditor.
The first step is to send the Letter of Demand.
If the debtor refuses to pay on foot of the demand letter then it will be necessary to issue court proceedings. The Court where proceedings are issued is determined by the amount of the debt owed. Set out below are the various court jurisdictions:
- District Court deals with debts upto €6,348.00
- Circuit Court deals with debts ranging between €6,349.00 and €38,092.00
- High Court deals with debts in excess of €38,092.00
The second step is obtaining judgment from the Court. In many cases this can be achieved without any necessity to appear in Court. There are however some cases where the debt is disputed and a full hearing is required in Court and the Judge will decide on the matter.
When judgment is secured it may then be necessary to enforce the judgment. Please see our section on Enforcement of Judgments for information on this process.