Everything about debt recovery’s economics rests on the assumption that the debt will not be genuinely defended. When that assumption fails, the claim stops being debt recovery and becomes commercial litigation — and the cost of that transition is borne entirely by the creditor.
The Threshold, and What Clears It
On a summary judgment application the court is not deciding the merits. It asks whether the defendant has raised a genuine issue that ought to go to trial, or whether what has been advanced is so lacking in substance that judgment should be entered now. The bar for a defendant is not high in absolute terms — it does not require them to prove their defence — but it is real. Generally will not clear it: a bare denial; general dissatisfaction never raised at the time; complaints about the wider relationship that do not answer whether this sum is owed; an assertion the invoice is wrong without particulars; requests for documents already supplied. Generally will: a specific, evidenced factual dispute about whether the sum is owed; a set-off or counterclaim arising from the same or a connected transaction; payment made or credit due; limitation; the wrong party sued. Specificity and timing are the markers, and they can usually be assessed before issuing.
Remittal, and the Decision You Should Make in Advance
If a genuine issue is raised, the matter is remitted to plenary hearing: pleadings exchanged, possibly discovery, evidence prepared, trial. Time goes from weeks to many months. Cost rises to a level frequently disproportionate to a modest debt — and recovering those costs still depends on the debtor having assets. Outcome ceases to be predictable. At that point the creditor faces a decision under pressure, having already spent money, which is the worst possible circumstance in which to make it. So make it in advance. Before issuing, decide: if this is defended, do we fight it, settle it, or stop? A creditor who has answered that question calmly, with the arithmetic in front of them, makes a materially better decision than one confronting it for the first time eight months in. And be genuinely open to the answer being settle: a discount accepted early frequently yields more actual money than a full judgment obtained expensively much later against a debtor whose means were never established. Where the trading relationship retains value, mediation is worth considering — a signed settlement is enforceable as a contract, so it is not a soft option.
The related trap: serving a statutory demand on a company over a debt that turns out to be genuinely disputed can be treated as an abuse of process, with the petition restrained or dismissed and costs following. Assess the dispute before reaching for that instrument, not after the company responds.
Expecting a defence, or facing one? 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.