Debt Collection

Effective revenue management and debt recovery is one of the most critical requirements for the sustainability and growth of most organisations in today's business world.  Our objectives at Barry Healy & Company, Solicitors is to assist our clients to:

1. Minimise debtor days.
2. Increase cash flow.
3. Improve collection efficiency.
4. Maximise customer retention.
   
   

We try to focus on the individual clients requirements and we offer a variety of solutions.


The Debt Collection Process

1. A demand letter.  In most cases this letter is sent to the debtor giving 7 days in which to make payment.  If there is no response then legal proceedings are issued.
   
   
2. Issue of Proceedings.  A summons is issued and served on the debtor by post (note: if the debtor refuses the post a Court Order can be obtained for service by other means).
   
   
3. Judgment is obtained.
   
   
4. Foreign Judgments.  An application can be made to the High Court to have judgments obtained outside Ireland (within the EU) deemed valid within our jurisdiction.
   
   
5. Trade Gazettes/The Sheriff.  The judgment can be registered in Trade Gazettes or lodged with the Sheriff.
   
   
6. Enforcement.  A Court Order can be obtained directing the debtor to pay by fixed instalments.
   
   
7. Judgment Mortgage.  The judgment can be registered on property owned by the debtor.
   
   
8. Bankruptcy.
   
   
9. Liquidations.
   
   
10. Searches.  We can carry out detailed judgment and bankruptcy company searches.
    
    
11. Interest.  Interest can be claimed at the rate specified in the contract the subject matter of the proceedings.  If there is no reference to the interest in the contract the Judge has discretion to award interest.  Where the judgement is awarded interest is automatically applied to the judgment debt.  The current statutory rate is 8%.  EU regulations provide that interest can be charged on all late payments after 30 days have elapsed at a rate of interest linked to the ECB base rate.  The regulations only apply to contracts entered into after the 8th of August 2002.  All businesses should ask themselves how good are their terms and conditions.  All businesses should be monitoring the impact that inefficient debt recovery is having on their cash flow.