A debt approaching six years old is not necessarily dying, and a debt over six years old is not necessarily dead. A written acknowledgment by the debtor, or a part payment, can cause the limitation period to run afresh from that date — which rescues creditors and catches debtors in roughly equal measure.
For Creditors: Look Before You Write It Off
Before treating an old ledger as lost, go back through the correspondence. An email in which the debtor accepted the balance, a letter proposing a payment plan, a signed statement of account, a note confirming the sum outstanding — any of these may amount to an acknowledgment capable of restarting the period. So may a payment on account, however modest, made at any point since. The requirements are technical, particularly as to the form of an acknowledgment and as to who must have made it, so nothing here should be assumed to have worked without advice. But the practical consequence is worth the search: creditors regularly discover that a debt they had written off in principle is comfortably within time because of something the debtor sent eighteen months ago. This is one of the more valuable half hours available in the whole area, and it costs nothing but the reading.
For Debtors: The Warning Nobody Gives You
This is the trap. Someone is being chased over an old debt. They cannot pay it, but they want to show good faith, or to stop the letters, or simply to be reasonable — so they send a small payment, or write back saying they accept they owe it and will pay when they can. That gesture may have revived a liability that was otherwise unenforceable, and restarted a six-year period from the date of the payment or the letter. Very few people are warned about this before they act, and by the time they are, it is done. The point is not to be evasive: where a debt is clearly owed and within time, engaging early and proposing something realistic generally produces a far better outcome than silence, and creditors are more receptive than debtors expect. The point is to know your position before you act on it — and specifically to take advice before making a payment or putting an acknowledgment in writing on any debt that might be old. If you have received a demand, this is the first thing to check, and free independent advice is available from MABS.
What generally does not restart it: a verbal acknowledgment or a phone conversation is considerably weaker ground than a signed writing, and should not be relied upon by a creditor or assumed fatal by a debtor. The statutory requirements are specific as to form, which is exactly why this needs advice rather than inference.
The full explanation is here, or ring 01 5827148.
Richard O’Shea — Solicitor
Solicitor at Mary Molloy Solicitors, established 1981, with offices at The Ormond Building on Ormond Quay — a short walk from the Four Courts. The firm advises creditors on recovery and enforcement, and, in separate matters, advises debtors who have received demands or proceedings. It is a law firm and not a debt collection agency: fees are agreed in writing at the outset and are never calculated as a percentage or proportion of what is recovered. 01 5827148 · richardoshea@marymolloysolicitors.com · LinkedIn
General information, not legal advice. This website contains general information about Irish law on debt recovery and enforcement. It is not legal advice and does not create a solicitor—client relationship. Every debt turns on its own facts — the documents, the dates, the parties and the debtor’s circumstances — and advice on yours requires a consultation. Statutory thresholds and figures referred to on this site are subject to change and should be confirmed before any step is taken.
A law firm, not a debt collection agency. Mary Molloy Solicitors provides legal advice and representation. It does not operate as a debt collection agency and does not conduct collection campaigns. Fees are agreed in writing with the client at the outset and are never calculated as a percentage or proportion of any sum recovered. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.
No outcome is promised. Nothing on this site states or implies that any debt will be recovered, that any asset will be found, that any enforcement step will succeed, or that any claim will succeed. Recovery depends substantially on the debtor’s means, which are frequently unknown at the outset.
How payment may be demanded is regulated. Section 11 of the Consumer Credit Act 1995 makes it an offence to make a demand for payment by means calculated to cause alarm, distress or humiliation, or falsely to represent that legal proceedings have been or will be issued. Nothing on this site should be read as encouraging any such conduct. Mortgage arrears on a principal private residence are dealt with under a separate regulatory framework and are outside the scope of this site.
If you are the person being pursued. Free, confidential and independent money advice is available in Ireland from MABS, the Money Advice and Budgeting Service, and through the Abhaile scheme for people in mortgage arrears. You do not have to engage a solicitor to get help, and taking advice early generally improves the options available. This firm advises debtors in matters separate from those in which it acts for a creditor, and never both sides of the same debt — conflicts are checked before any substantive discussion.
Tax. Nothing on this website is tax advice. Questions about VAT on recovered sums, bad debt relief or the treatment of write-offs belong with your accountant or tax adviser and with Revenue’s own guidance.