A solicitor’s letter means a creditor has moved from internal chasing to external action. It is not a court order, it does not oblige you to do anything today, and there are two things to do before you pay anyone anything.
1. If you have been served with proceedings, do not ignore them. Judgment in default can be entered on a debt that was statute-barred, overstated or genuinely disputed, purely because nobody replied. Note the date of service — deadlines run from it. 2. Free, confidential, independent money advice is available. MABS costs nothing and is independent of any creditor; the Abhaile scheme covers mortgage arrears. For many people that is the right first call, before engaging any solicitor.
Six Questions
Is it within time? A simple contract debt generally carries a six-year limitation period from when it fell due. If that has passed there may be a complete defence — but it must be raised, because a court will not apply it for you. Is the amount right? Have all payments and credits been applied; does the balance actually reconcile. Do you owe it at all? Or is there a genuine dispute, or a set-off arising from the same transaction. Is the claimant entitled to claim? If the debt was sold or assigned, can they show the assignment properly and produce the underlying agreement — portfolio purchasers frequently hold less documentation than the original creditor, and requiring them to establish the debt rather than assert it is entirely legitimate. Was the demand lawful? Section 11 of the Consumer Credit Act 1995 makes certain kinds of demand a criminal offence. What can you realistically pay? An honest figure is more useful than an optimistic one.
The Warning Almost Nobody Gives You
Be careful about paying something small, or writing to acknowledge the debt, before you know your position. A part payment or a signed written acknowledgment can restart the limitation clock — so the instinctive gesture of paying a little to show good faith, or writing back accepting the balance and promising to pay when you can, may revive a liability that had become unenforceable. That is not an argument for being evasive. Where a debt is clearly owed and within time, engaging early and proposing something realistic generally produces a much better outcome than silence, and creditors are frequently more receptive than debtors expect — an arrangement that gets performed is worth more to them than a judgment they cannot enforce. It is an argument for understanding your position before you act on it. Take advice, from MABS or a solicitor, before making a payment or putting anything in writing on a debt that might be old. The full page for debtors is here.
You do not necessarily need a solicitor. MABS is free and independent, and for many people it is the right first call. A solicitor earns their place where there is a genuine legal question — limitation, a real dispute or set-off, defective service, a wrong figure — or where proceedings have issued and a response is required.
This firm advises debtors in matters where it does not act for the creditor: 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.