• Debt Collect
  • Address Line 1
  • Address Line 2
  • Dublin
  • Ireland

Email: info@debtcollect.ie

Tel. 678 7000

Legal Process

Enforcement of Judgment

When judgment is obtained and the debtor still refuses to pay the outstanding debt, clients instructions are sought regarding the enforcement of the judgment.

There are several methods of enforcement, which may issue at any time within six years of the judgment.

Some enforcement methods are only available against individual debtors while others are only used against companies.

In each case, the preferred enforcement option will be determined having regard to the background information gained in relation to the debtor's circumstances.

Corporate Enforcement of Judgment

Publication
Execution By Sheriff
Judgment Mortgages
Garnishee Orders
Receiver By Way of Equitable Execution
Injunctions
Examination of Directors
Liquidation

Publication

Once a Judgment has been obtained it can be registered in the Central Office of the High Court. This leads to the publications of the name of the debtor and the amount of the Judgment in Trade Gazettes.

This will affect a debtor's credit rating which can have serious consequences that the debtor may wish to avoid. Frequently, the threat of this enforcement action will be enough to result in payment by the debtor.

Execution By Sheriff

A creditor may choose to lodge the Judgment Order with the Sheriff in the area where the debtor resides or conducts his business.

By doing so, the creditor is requesting the Sheriff to seize goods from the debtor and to sell them for the purpose of raising money to satisfy the amount of the judgment.

The procedure is important as some other methods of enforcement may require the Court being satisfied that the Sheriff has been unable to execute the judgment in this way (e.g. Bankruptcy).

It should be noted that where it would not be economically viable to seize goods, the Sheriff will often enter into instalment arrangements with debtors.

Judgment Mortgages

A judgment mortgage can be obtained by a creditor who has obtained judgment against a debtor who owns land or property.

When a judgment is validly registered as a mortgage, it creates a legal charge over the debtor's interest in the lands or property resulting in two main consequences:

The debtor cannot sell the lands or property until the mortgage is firstly discharged.

The creditor may enforce the judgment mortgage by seeking a Court Order for the sale of the land or property. The proceeds of such a sale will be used to discharge the judgment.

Garnishee Orders

Where a third party owes money to the debtor, the Court can make a further Order directing the third party to pay the sums due directly to the creditor.

This method of legal execution can be very effective where circumstances permit its use. The Creditor must first have obtained a Judgment against the Debtor.

Receiver By Way of Equitable Execution

Where money is due to be paid to the debtor at certain future dates e.g. periodic rents, the Court may appoint an independent person to receive the money payable to the judgment debtor as and when the money falls due. In this way, the Receiver receives the money instead of the debtor. The Receiver accounts for the money coming into his hands and pays the Creditor.

The Creditor must have a Judgment Order against the Debtor.

Injunctions

An injunction is an Order of the court directing a party to do or to refrain from doing something. Injunctions can vary in duration and can be either: 1. Prohibitory - restrictive/preventative or 2. Mandatory - compulsory

A Court Judgment is not necessary to apply for an Injunction.

An Injunction can be sought by a creditor in the following circumstances:

  1. Mareva Injunction - to prevent a debtor from knowingly disposing of or reducing assets below a certain monetary level for the purpose of avoiding paying a debt.
  2. Ne Exeat Regno- to prevent the debtor leaving the jurisdiction.
  3. Anton Pillar Order - to prevent the destruction or removal of evidence. This is used also to compel the debtor to disclose to the creditor the whereabouts of specific documents or items.

Examination of Directors

In the event a judgment is obtained against, for example, a limited liability company, the possibility of examining officers of the company before the court - with a view to assisting discovery and execution of the judgment - is a valuable tool. Any officer of a company may be examined orally and cross-examined as to the assets of the company. While such officers are not personally liable, the process can produce valuable information where consideration is being given to the winding-up of the company. The prospect of such examination may bring about payment of debt owing to the creditor.

Liquidation

When a company is unable to pay its debts it is said to be insolvent. In such circumstances, a number of events may follow one of which is the voluntary or compulsory liquidation or "winding-up" of the company. The process of liquidation involves, amongst other things, the collection of all assets of the company by a liquidator and the distribution of any net proceeds (after deduction all costs and expenses) to creditors of the company in order of priority, followed by the eventual dissolution of the company itself pursuant to the appropriate provisions of the Companies Acts.

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Individual Enforcement of Judgment

Publication
Execution By Sheriff
Examination and Instalment orders
Committal Orders
Judgment Mortgages
Bankruptcy Orders
Garnishee Orders
Receiver Equitable Execution
Injunctions

Publication

Once a Judgment has been obtained it can be registered in the Central Office of the High Court. This leads to the publications of the name of the debtor and the amount of the Judgment in Trade Gazettes.

This will affect a debtor's credit rating which can have serious consequences that the debtor may wish to avoid. Frequently, the threat of this enforcement action will be enough to result in payment by the debtor.

Execution By Sheriff

A creditor may choose to lodge the Judgment Order with the Sheriff in the area where the debtor resides or conducts his business.

By doing so, the creditor is requesting the Sheriff to seize goods from the debtor and to sell them for the purpose of raising money to satisfy the amount of the judgment.

The procedure is important as some other methods of enforcement may require the Court being satisfied that the Sheriff has been unable to execute the judgment in this way (e.g. Bankruptcy).

It should be noted that where it would not be economically viable to seize goods, the Sheriff will often enter into instalment arrangements with debtors.

Examination, Instalment & Committal Orders

Examination Order: An Examination Order follows service of a summons requiring the debtor to complete a Statement of Means and to attend Court to be cross examined regarding his means. At the Examination hearing, a Judge may make an Instalment Order having regard to the debtors means. Even if the debtor refuses to attend Court, the Judge may award an Instalment Order in his absence.

Instalment Order: An Instalment Order compels a debtor to repay by instalments the amount of the debt and legal costs which are due. If the debtor fails to comply with the Order, then a Committal Order can be sought from the Court.

Committal Order

This is an Order, which directs that the debtor be arrested and committed to prison for contempt of Court for failure to comply with the terms of the Instalment Order.

Judgment Mortgages

A judgment mortgage can be obtained by a creditor who has obtained judgment against a debtor who owns land or property.

When a judgment is validly registered as a mortgage, it creates a legal charge over the debtor's interest in the lands or property resulting in two main consequences:

The debtor cannot sell the lands or property until the mortgage is firstly discharged.

The creditor may enforce the judgment mortgage by seeking a Court Order for the sale of the land or property. The proceeds of such a sale will be used to discharge the judgment.

Bankruptcy Orders

Bankruptcy is a legal process for the benefit of creditors where the debtor is unable or unwilling to discharge his debts.

In order to commence this enforcement action, the debtor must have committed an act of Bankruptcy (e.g. a judgment returned by the Sheriff marked "No Goods/Nulla Bona" is an act of Bankruptcy).

Where a debtor is adjudicated a Bankrupt by the High Court, the property of the debtor becomes vested in the Official Assignee (an officer of the High Court). The result is that the Bankrupt loses his/her capacity to deal with the property. The debtor's property is then realised for the benefit of the creditors.

Garnishee Orders

Where a third party owes money to the debtor, the Court can make a further Order directing the third party to pay the sums due directly to the creditor.

This method of legal execution can be very effective where circumstances permit its use. The Creditor must first have obtained a Judgment against the Debtor.

Receiver By Way of Equitable Execution

Where money is due to be paid to the debtor at certain future dates e.g. periodic rents, the Court may appoint an independent person to receive the money payable to the judgment debtor as and when the money falls due. In this way, the Receiver receives the money instead of the debtor. The Receiver accounts for the money coming into his hands and pays the Creditor.

The Creditor must have a Judgment Order against the Debtor.

Injunctions

An injunction is an Order of the court directing a party to do or to refrain from doing something. Injunctions can vary in duration and can be either: 1. Prohibitory - restrictive/preventative or 2. Mandatory - compulsory

A Court Judgment is not necessary to apply for an Injunction.

An Injunction can be sought by a creditor in the following circumstances:

  1. Mareva Injunction - to prevent a debtor from knowingly disposing of or reducing assets below a certain monetary level for the purpose of avoiding paying a debt.
  2. Ne Exeat Regno- to prevent the debtor leaving the jurisdiction.
  3. Anton Pillar Order - to prevent the destruction or removal of evidence. This is used also to compel the debtor to disclose to the creditor the whereabouts of specific documents or items.

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