Obtaining a judgment against a debtor for the recovery of a debt owed to your business, at times, can be an easy process. In some cases, a debt may be collected simply by issuing a demand letter, giving the debtor 7 days to pay the debt to you. However, this can differ from case to case and depend on your situation, it can be a more difficult process that will take longer than the initial 7-day demand letter. In such cases, you may commence with legal action and if you still hear nothing back from your debtor then you may proceed to obtain judgment in default.

What is Judgment in Default?

Judgment in default is a judgment against a debtor in cases where a debtor fails to respond to the legal proceedings issued by the creditor within the legal timeframe applicable following the receipt of legal proceedings. In cases where a debtor fails to acknowledge legal proceedings the creditor, with the help of a debt recovery solicitor, can then seek an application for judgment in default without the need for a Court hearing.

Is Judgment in Default a Fair Process?

In short – yes.  In order to obtain Judgment in Default, the creditor must follow strict Court rules in respect of the of the legal proceedings issued on the debtor. To do this the creditor must supply the Court office with a number of documents known as a Judgment set. Included in the Judgment Set there will be sworn document stating that the legal proceedings were served correctly on the debtor. This clearly shows that the debtor was aware of the legal proceedings but did not acknowledge them and respond as needed. The creditor needs to be paid for the service/product they have provided to the debtor and without the judgment in default process to help them recover their debts, this could have an impact on the cash flow/profitability of the company. Obtaining a judgment in default will help them get paid faster. However, the important thing to remember is that for a judgment in default to be issued, you must be able to prove and the Court must be satisfied that the legal proceedings were served correctly on the debtor.

What is the Advantage of Judgment in Default?

Obtaining a judgment in default against your debtor has its benefits, it can save time and money for both the creditor and the debtor. By allowing a creditor to take up judgment in default without having to go to Court, both the creditor, debtor and the Court system are saved time and money.

Get Paid Faster with Carlisle Solicitors Debt Recovery Process

It is important that you work closely with your debt recovery solicitor when moving through the debt collection process. Getting paid faster is not only your goal but is also our objective in all our client cases. For more information on how you can reclaim your debts and get paid faster, contact Sarah Walsh, Head Debt Recovery Solicitor, on 01 653 3370 or via email to law@carlislesolicitors.ie and tell her about your case.