The debt collection procedure in Ireland is mainly regulated by the Courts and Civil Law Act of 2013 which is completed by several other regulations which provide for the procedures which need to be respected by debt recovery agencies in this country.
Recovering a debt in Ireland implies several steps which need to be respected by the agency or lawyer carrying out the procedure.
Below, our debt collection lawyers in Ireland explain the debt collection procedure in order for creditors and debtors to understand how the process works. We also offer assistance to those in need of debt collection services in Ireland.
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What are the steps in a debt collection procedure in Ireland?
The first stage in recovering a debt in Ireland is the amicable procedure which in certain cases represents the first and last step in the debt collection procedure, as during this stage the creditor and the debtor can reach an agreement which will put an end to the debt. However, before reaching the amicable stage or court procedure of debt collection in Ireland, the following steps will be respected:
- the first stage will imply the creditor to notify the debtor about the debt and try to reach an agreement;
- if the debtor fails to reply, the creditor can ask for help from a debt collection agency or debt collection lawyers in Ireland;
- the agency will take over the case and notify the debtor about taking the case before an Irish court;
- the court will send summons to both the creditor and the debtor and the parties will need to submit evidence of their cases;
- based on the evidence, the Irish court will hear both parties and will rule on the debt collection case;
- if the creditor has obtained the right to recover his/her debt, the court will issue an order which will be enforced with the purpose of recovering the outstanding amount of money.
It is important to note that debt collection cases in Ireland can be tried by different courts depending on the amount of money to be recovered. Our debt collection lawyers in Ireland can offer more information on the court debt recovery procedure.
Step 1 – notifying the debtor
The first step in debt collection in Ireland is sending a notification and asking the debtor to pay the amount of money owed. The notification can be sent directly by the creditor during the amicable procedure, however, if the debtor fails to reply, it is the creditor’s right to ask the services of a debt collection agency or law firm in Ireland.
The agency or lawyer handling the case will then contact the debtor by email, post, and phone in the attempt of recovering the debt.
If no answer is obtained from the debtor, the agency or lawyer will file the debt collection claim with the Irish court.
Step 2 – court summons and hearings
Once the debt collection agency has filed a petition for recovery of the debt with one of the Irish courts, the judge will summon both the claimant and the defendant in order for a trial to begin. Both the creditor and the debtor have the right to submit evidence related to the case through their debt collection lawyers in Ireland.
The debtor also has the right to contest the claim of the creditor, however, if the debtor fails to reply, the creditor will have the right to apply for a summary decree, case in which the procedure will be sped up.
Our debt collection lawyers in Ireland can offer detailed information on how court proceedings related to debt recovery are completed. They can also provide legal assistance in debt recovery cases completed through court proceedings.
The documents which need to be submitted when asking for court debt recovery in Ireland are:
- the notifications sent to the debtor during the amicable procedures, including emails;
- the documents attesting to the failure of paying the amounts of money to be recovered;
- the contracts from which the amounts of money to be recovered result (where the case requires);
- the bills and other financial documents which can support the claim of the Irish creditor;
- other documents, depending on the case and if the Irish court needs other evidence.
Debt collection agencies in Ireland must keep all the documents related to the recovery of amounts of money and file them with the court.
Step 3 – enforcing the court decision
The final stage in debt collection in Ireland is the enforcement of the order issued by the Irish court which will also lead to the payment of the debt. It is important to notice that the debtor has the right to appeal the court verdict, a case in which the debt recovery procedure may prolong.
For complete assistance in amicable or court debt collection in Ireland, we kindly invite you to contact our lawyers for legal support and advice.