At McEnroe Solicitors we offer practical advice on how best to pursue debts owed to you or your business.

We are members of the Irish Institute of Credit Management (IICM).

In the current economic climate, the issue of debt collection is becoming more and more relevant for businesses. It is vital that where a sum of money is owed to your business, appropriate steps are taken to pursue collection of the debt, whether it is in the form of a simple Demand Letter or Court Proceedings.

Five Golden Rules of Debt Collection

1. Stop extending credit early to an account in arrears
2. Do not deal with a Limited Liability Company without an executed Personal Guarantee from a Director behind it
3. Keep frequent telephone and face to face contact with the Debtor
4. Vet your customers carefully - Avoid Bad Debts from the outset - No Business is better than a Bad Debt
5. Take legal action early as a matter of policy
6. Terms of Trade - Print them on the back of your invoices and make sure you have a strong Retention of Title Clause

New Debt Collection Service

In order to keep up with the increased demand in this particular area we now offer a new debt collection service to our clients. On receipt of your instructions we will pursue a debt on your behalf in a quick and efficient manner, while keeping you up to date at each stage of the process. We have recently installed specialised debt collection Case Management software which will enable us to issue Demand Letters and, if necessary, Court Proceedings, without delay following initial instructions from you.

Fill out our Instruction Sheet below and we will pursue a debt on your behalf without delay

The debt collection service includes:

• Pre Legal Service

We offer clients the opportunity to avail of our pre-legal service through association with our own debt recovery company, Corporate Debt Management Limited (CDM). CDM adheres strictly to the IICM  Code of Practice. CDM will pursue a debt on behalf of a client prior to 'going legal' on a 'no recovery no fee' basis and will therefore reduce exposure to legal costs and outlays. CDM will send out demand letters to the debtor and follow up the letters with intermittent telephone calls and a call-out if necessary.  Contact us for further details of this new service or contact Seamus of CDM directly on (071) 9128483 or by emailing info@cdml.ie.   Click here for more details www.cdml.ie.

• Credit Checks

We will perform credit checks on debtors in the Companies Registration Office, Property Registration Authority, Judgement Office and where an individual is involved, the Bankruptcy Office, to establish whether the debt is worth pursuing.

 
• Formal Demand Letters

A formal letter of demand to the debtor. The debtor will be given 7 days to pay the debt.  The letter will outline the consequences of a Judgement being obtained against them.  If payment is not received within 7 days court proceedings will be issued against the debtor without further notice.

 
• District Court Action

Where the amount owed is not more than €6,348.69 we will pursue the debt through the District Court and attempt to obtain Judgement against the Debtor on your behalf.

• Circuit Court Action

Where the amount owed exceeds the District Court limit and does not exceed €38,092.14 we will pursue the debt through the Circuit Court and attempt to obtain Judgement against the Debtor on your behalf.

• High Court Action

Where the amount owed exceeds the Circuit Court limit we will pursue the debt through the High Court and attempt to obtain Judgement against the Debtor on your behalf.

• Post Judgement Action

Once Judgement is obtained options open to you include:

- Register a Judgement Mortgage.  The Judgement is registered as a charge on the debtor’s property.  The debtor will be unable to sell or mortgage the property without discharging the debt. 

 

- Obtain an Instalment Order from the appropriate court whereby the Debtor will be ordered to pay monthly instalments to you.

 

- Obtain a Garnishee Order.  Where it can be established that there are monies due the debtor, but not paid, we can apply to the court for a Garnishee Order, directing that such monies are paid by the third party directly to you.

- Bankruptcy/Liquidation application.  In circumstances where the debtor is a company, the creditor is entitled to apply to the courts to wind the company up where, following a written demand for payment of the debt and the expiration of a 21 day period, the debt remains unpaid.  Such proceedings can be quick and effective, and exert additional pressure on the debtor to pay the debt.   A similar procedure is involved where the debtor is an individual, an application can be made to the court to declare the debtor bankrupt. 

- Request the Sheriff to seize the Debtors goods to discharge the debt.

 

Contact our Debt Collection Team

If you are interested in our new Debt Collection service please contact Dónal Carroll, Solicitor, or Winnie Langton, Legal Executive, for more information. 

Please fill out the Debt Collection Instruction Sheet below and return to our office with all relevant documentation if you wish for us to proceed to collect your debt immediately.

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DEBT COLLECTION INSTRUCTION SHEET

Instruction Sheet to be filled out by clients