Most enforcement methods reach assets. This one reaches income — which matters, because a very common debtor profile is somebody who earns but owns nothing worth seizing.
Examination First
An examination is the process by which the debtor’s means are established on oath: what they earn, what they own, what they owe, what their outgoings are. It is useful in two distinct ways. First as a route to an instalment order, because the court needs to know what the debtor can actually afford before ordering anything. Second as information in itself — a creditor who has never been able to establish what a debtor has may learn more from an examination than from any amount of external searching, and that information determines whether any other enforcement route is worth pursuing. It also has a behavioural effect that should not be underestimated: a debtor who has ignored correspondence for a year frequently engages when required to attend and account for their finances on oath, and a proportion of these matters settle at or shortly before that point.
The Order, and Its Honest Limits
An instalment order directs that the judgment debt be paid by instalments at a rate the court considers the debtor can afford. Its advantage is that it produces an actual payment stream from someone with income and nothing realisable. Its limits should be stated plainly rather than discovered. The rate may be modest against the size of the debt, because it is set by reference to what the debtor can afford rather than what the creditor is owed — on a substantial debt against a person of limited means, full recovery by instalments may be a very long horizon. It depends on cooperation with the process, and non-compliance has its own consequences and procedure, which is a further step and a further cost. And it produces nothing at all against a debtor with no income. Set against that: for a great many personal debtors it is the only route that produces money, and a modest sum arriving steadily is worth considerably more than a judgment mortgage on a property with no equity or an execution that returns nothing. As always, match the method to what the debtor actually has — which is why the investigation comes first.
For debtors: if you are required to attend an examination, attend and be accurate. The process establishes what you can afford, and an honest account of genuinely limited means generally produces a proportionate order. Free independent advice on preparing for it is available from MABS at no cost.
Judgment obtained and no payment? 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.