dealing with legal proceedings for debt recovery

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user123456

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I am in debt to the tune of about 30K with 3 banks. Approx 10K each at this stage. 2 of the banks have gotten judgements in the circuit court and are going to send the sherriff to seize goods etc. The other is at the pre judgement stage.

The thing is I have nothing to give them. I own no property or have any assets. I am a married man with a wife to support. I don't earn alot by todays standards circa €400 a week. Travel to and from work is about €100 a week and cannot be reduced. Out of the rest we are supposed to feed and look after ourseleves. Wife does not work due to illness.

I asked a friend in the legal trade who tells me that none of the creditors would be likely to be granted an installment order in view of the almost nil disposable income. I dunno if this is the case.

The question is should I now write to the solicitors dealing with these matters without predjuice and tell them the situation? Would this be likely to inflame the situation or should I hold tight until they attempt to seek an installment order?

I have spoken to mabs and their advice was to let the creditors try to get an installment order and to let the court decide if I can pay or not.

Should I write to them or not?

Also Can my employer take any action against me for have judgments registered against me? Could I be fired or otherwise be reprimanded? Is it any of their business?


Thanks for your time
user123456
 
When proceedings for an installment order are issued against you , you will have to furnish details of income, expenses and other orders. The monthly installment will be decided by the judge on the basis of this and could be as little as €5.00 per week depending on your circumstances but beware..should you default on an order you can be imprisioned for 14 days and some institutions will insist on this..others write off the debt but the judgement will remain against you until cleared. I do not believe that an employer will reprimand you..this is a private financial matter. Stick with MABS..they can help you to organise your finances better and set up a monthly budget plan. good luck !
 
Thanks for your reply.

Thats all the advice MABS offered. I won't be going back as they were unhelpful.

The burning question is should I now write to the creditors and head off any application for an installment order?

If Creditor A gets an order for say €20 a week and creditor B tries to get an order would it be refused as I am already paying A or would the original order for A be reduced?

I really could use some help on this.

Thanks
 
Creditor B will get a reduced amount as your available income has been reduced by Creditor A's installment. By writing to Creditor C while you may delay proceedings they will look for a weekly/monthly payment that could be higher than one ordered in Court. By disclosing your status with other creditors they may well decide that the best way to secure the debt is to proceed with an order unless you can prove that you are able and willing to make regular payments. Banks normally are quite happy once they see that the creditor is making a genuine effort to clear the debt. I am surprised to hear that MABS were of no help to you though ideally you should seek out their assistance before matters go to court. My advice would be to contact the bank, outline your circumstances and financial commitments and take it from there. Have you been servicing any of the debts as this will also influence the decision? I found myself in a similar position a few years ago due to a number of circumstances beyon my control and have managed to turn things around so don't lose heart!
 
I worked in lending for years and I have been on the banks side of your problem. The only reason I can see Mabs being like that with you is that you broke payment arrangements with creditors that Mabs set up on your behalf. If this is not the case, go to another branch of Mabs as you obviously got a waster in that branch of Mabs you attended - they are normally very good!

Usually when Mabs got involved we would never sue a borrower as long as they kept to the Mabs repayment schedule, and believe me, that was usually a drop in the ocean compared to what they owed us. Get Mabs to start sending the creditors a nominal amount of money on a weekly basis (something you can afford). This will show the judge you are genuinely trying to repay the debt - Mabs are very well respected by judges and they do good work. Stick with Mabs, they are your best option.
 
Thanks for that Healy1. I made the creditors offers in the past and were all rejected by the banks. I then went to mabs and they were told the same. I cannot afford what they are looking for, hence their advice to let them seek an installment order.

Things are very tight at the moment money wise. I am oblivously fearful of the sherriff showing up looking for €,000's that I don't have.

Thanks for the help so far.
 
Well, you did cooperate with Mabs and you offer to come to some arrangement based on your circumstances. I think the judge will rule in your favour - you seem to have done your best to sort something out.

We used to hardly ever sue someone in your circumstances as it was a waste of time. Judges often side with the borrower if they feel the lender has over-extended a borrower. The main thing is you have made an effort to resolve the situation, the judge will appreciate that. I don't think the instalement order will be too severe (if they get one).

Good luck with it, I hope my input helps.
 
Update:

2 of the judgments have now issued summonses for installment orders. Its 2 different depts of the same bank represented by 2 different solicitors. Strange thing is they are both listed for the same sitting of the court in may.

How do I play this? Could look very bad on the day with 2 cases up at the same time. Do I play each off against each other or do I get them to talk to each other and agree?

Thanks
user123456
 
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