Enforcement of Judgments
Once judgment has been secured it may then by necessary to issue enforcement proceedings where the debtor refuses to comply with the order. There are various ways to enforce judgment as set out below:
This process can lead to publication in Stubbs Gazette and cause credit rating problems for the debtor.
Lodgement with the Sheriff
With this process the Sherriff can seize goods from the debtor to the value of the debt and sell them to repay the debt. The Sheriff charges a commission for this service.
This is a procedure where the debtor is required to attend Court and furnish a statement of means. The Court examines the means and decides on a rate of repayment on a weekly or monthly basis. This is not available if the debt is owed by a company.
This is an application that can be made to court where the debtor refuses to pay on foot of an instalment order. On the return date the judge may decide to change the rate of repayment or if it is evident that the debtor can afford to pay but is merely ignoring the matter make an order for committal.
This is an application brought in the Circuit Court whereby a third party who owes money to the debtor can be directed by the Court to pay the money to the creditor to discharge the sums due. This remedy is useful if the creditor is aware that the debtor is selling a house or due to receive compensation arising from an injury or other litigation.
Once a judgment is granted a creditor can make an application to have the debt registered against the deeds of the creditor. Once registered this judgment remains a charge on the title for 12 years. Effectively the debtor cannot deal with the property within that period of time unless the debt is discharged. A debtor can take a further step and apply for an order for sale compelling the sale of the property.
Winding up Petition
If a Company is in breach of a court order to pay a debt then an application can be made to wind up the Company. Sometimes the threat of winding up the Company can encourage the debtor to pay.
If an individual refuses to pay then an application for Bankruptcy can be made on the grounds that the individual is unable to meet his/her debts. This is a costly procedure and recently the Personal insolvency Act 2012 has changed the Bankruptcy laws in Ireland significantly.
Please contact Michelle Gilbourne for a consultation.