Debt Collection Ireland: A CFO Guide to Irish Recovery

Debt collection in Ireland operates under a common-law framework grounded in English legal tradition, with the key statutes being the Statute of Limitations 1957 (as amended by the Statute of Limitations (Amendment) Act 1991), which sets a 6-year limitation period for simple contract claims running from the date the cause of action accrues, and the Courts and Civil Law (Miscellaneous Provisions) Act 2013. Irish court jurisdiction is split by amount: the District Court hears claims up to EUR 15,000; the Circuit Court from EUR 15,000 to EUR 75,000; and the High Court for all amounts above EUR 75,000, with the dedicated Commercial Court (a specialist list within the High Court) available for commercial disputes exceeding EUR 1,000,000 where the case qualifies under the Commercial Court Rules (S.I. No. 2 of 2004). For undisputed corporate debts, the statutory demand procedure under Section 570 of the Companies Act 2014 (as amended by S.I. 580/2012) is the creditor’s sharpest tool: a demand served at the company’s registered office, requiring payment within 21 days, and failure to comply is prima facie evidence of insolvency — entitling the creditor to present a winding-up petition before the High Court, triggering bank account restrictions and directoral exposure that produce settlement pressure equivalent to a Hong Kong or UK statutory demand. EU enforcement instruments are fully operative: the European Payment Order (Regulation 1896/2006) and Brussels I Recast (Regulation 1215/2012) provide uncontested cross-border enforcement and automatic recognition of EU judgments without exequatur.

A Dutch pharmaceutical equipment supplier has EUR 340,000 outstanding from a Dublin-based medical devices distributor — three invoices under a signed master supply agreement, 90 days overdue. The Irish debtor is still trading and has acknowledged the balance in two written emails but made no payment. Strategy: (1) Limitation: Statute of Limitations 1957 s.11(1)(a) — 6 years from due date, well within window. Each written acknowledgment restarts the clock. (2) Statutory demand under Companies Act 2014 s.570: serve the demand at the Dublin registered office. The debtor has 21 days to pay or dispute. Failure to comply enables presentation of a winding-up petition at the High Court. The petition, once advertised in the Companies Registration Office Gazette, creates bank restriction pressure and directoral liability that produces settlement in most clean commercial files before the winding-up hearing. (3) If the debtor raises a genuine dispute, file in the High Court (amount exceeds EUR 75K) or apply for summary judgment under Order 37 of the Rules of the Superior Courts — appropriate where the debtor has no arguable defence. (4) EU Directive 2011/7/EU (transposed by European Communities (Late Payment in Commercial Transactions) Regulations 2012): ECB+8pp statutory interest plus EUR 40 per invoice fixed compensation, claimable from the first day past due.

The Irish Legal System and Debt Collection in Ireland

Ireland is a common-law jurisdiction. EU instruments fully operative: Brussels I Recast (Regulation 1215/2012), European Payment Order (Regulation 1896/2006), EAPO (Regulation 655/2014), ESCP (Regulation 861/2007).

Irish Court Hierarchy and Monetary Thresholds

District Court: up to EUR 15,000. Circuit Court: EUR 15,000 to EUR 75,000. High Court: above EUR 75,000, unlimited — Order 37 summary judgment. Commercial Court (specialist High Court list): EUR 1,000,000+ commercial disputes under S.I. No. 2 of 2004. Court of Appeal and Supreme Court: appellate tiers.

The Commercial Court, SI 580/2012, and Section 570 Demands

Section 570 of the Companies Act 2014: creditor owed EUR 10,000+ may serve a statutory demand at the company’s registered office. Debtor has 21 days to pay, secure, or compound the debt. Failure = prima facie evidence of insolvency = winding-up petition at the High Court. Once petition presented: bank account restrictions under s.627, void post-petition dispositions, directoral liability. Genuine disputed debt: s.570 not appropriate; creditor falls back on ordinary litigation or summary judgment.

Statute of Limitations for Commercial Debt in Ireland

Statute of Limitations 1957, s.11(1)(a): 6-year limitation period for simple contract claims from the date the cause of action accrued (invoice due date). Restartable by: written acknowledgment of the debt by the debtor, or part payment. Specialty (deed): 12 years. Judgment debt: 12 years. EU Late Payment Regulations 2012 (transposing Directive 2011/7/EU): ECB+8pp statutory interest + EUR 40 per invoice fixed compensation, automatic, no proof needed.

European Instruments Available in Ireland

European Payment Order (Regulation 1896/2006): uncontested cross-border EU claims — Form A filing, 30-day opposition window, no ceiling. Brussels I Recast (1215/2012): EU judgments directly enforceable — no exequatur. EAPO (Regulation 655/2014): pre-judgment bank account freeze across EU. ESCP (Regulation 861/2007): claims up to EUR 5,000.

Enforcement: Sheriffs, Garnishees, and Judgment Mortgages

Execution: writ of fieri facias (fi. fa.) against goods. Garnishee order: third-party debt owed to judgment debtor (bank accounts, receivables). Judgment mortgage: registers judgment against debtor’s real property. Examination of judgment debtor for asset disclosure. Sheriff (County Registrar) handles execution outside Dublin; Dublin Sheriff handles within.

How does debt collection work in Ireland?

Demand letter (EU Late Payment Regulations 2012: ECB+8pp + EUR 40). If no payment: s.570 statutory demand for corporate debts over EUR 10,000 (21 days). District Court (up to EUR 15K), Circuit Court (EUR 15K–EUR 75K), High Court (above EUR 75K). High Court Order 37 summary judgment for uncontested invoices. Limitation: 6 years (Statute of Limitations 1957 s.11(1)(a)).

You know the debt is real. What you need now is someone on the ground in the right jurisdiction who can make it cost the debtor more to ignore it than to pay it. Contact Cosmopolite for a free case assessment. No win, no fee.