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

Email: info@debtcollect.ie

Tel. 678 7000

Legal Process

 

The procedure for obtaining judgment depends on whether or not the case is defended.

The purpose of legal action is to encourage the debtor to pay. If the debtor pays at any stage during the process, legal action can be stopped. If the debtor refuses to pay, legal action will continue until the debt and costs are paid in full or the debtor makes a settlement.

Where a debtor fails to pay , the court will grant judgment in favour of the creditor. This is a decision of the court confirming that the debt is owed by the debtor to the creditor for the amount stated on the judgment together with costs.

Letter of Demand

The debtor must always be made aware of the debt and be advised of any impending action by a creditor. For this reason, the first step in a typical debt recovery action is the issue of a letter before action (LBA).

The LBA will state that the debtor is on notice of a claim for a debt, that it must be paid within a specified time frame, usually seven days and that failure to do so will result in the issue of legal proceedings without further notice to the debtor. It further warns that costs will be claimed if legal action becomes necessary.

The letter in itself is often all that is required to make the debtor appreciate the error of his ways and pay up.

Issuing and Service of a Court Summons

If the debtor fails to respond to the LBA within the time allowed, Court proceedings are issued and served. Great importance is attached to issuing the proceedings seven days after the LBA. This is to maintain momentum and to ensure that the debtor knows how serious the matter is.

Issuing court proceedings is the process whereby the appropriate endorsement of claim is drafted, the summons stamped with the required stamp duty and is submitted to the relevant court office for the allocation of a record number.

Once these matters have been attended to, the proceedings can then be served on the debtor.