# What route to take with small debts



## merid (20 Jan 2014)

Hi,

I posted previously in askaboutmoney about a debt that the county sheriff is pursuing from a cousin of mine.  The person has very little assets of value that would interest the sheriff I'd imagine as everything is in husbands name like car etc so I presume they can't be touched.
The debt is quiet small compared to what I have been reading here.   The house is paid so no mortgage involved so it's just this one judgement that is really outstanding - I think it around 40K which she has no hope of paying.
I mentioned that maybe she should should go down the road of talking to a PIP so see what her options were in terms of bankruptcy or personal insolvency arrangement.
As the husband is self employed she is afraid it would effect his business going forward if she went down the bankruptcy route....would only ever generate a small profit I'd imagine.

Would my advice to talk to a PIP be recommend or should she just ignore the judgement as there is nothing the sheriff can get anyway and he will just go away?

She has spent a lot of money on the legal route and it just seem to be going nowhere but costing her more all the time.

Would appreciate any comments on what she should consider at this stage in terms of personal insolvency options.  There would be a lot of bad blood between the debtor and creditor if that makes any difference.


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## 44brendan (20 Jan 2014)

If she has no assets and no income there is little that can be done against her. because the sheriff is now involved a judgement must have been obtained against her. Sheriff will merely call and look for goods. Will give notice of same and acll out could take some time. Generally where debt is personal and there are no business assets sheriff will not progress further. i.e. he will not take furniture or the family car, if it is in husbands name. Next process is then open to the creditor who can look for an installment order (only if there is independent income source) or judgement can be registered against PDH if it is in joint names. No point in going to a PIP unless she has a reasonable level of income. A DSA may be suitable, but it depends on her financial circumstances and level of other debts!


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## merid (20 Jan 2014)

OP here. Thanks for reply.  She would have very little income either now or into the future.  Sheriff called and looked at tax book of car and saw it was in husbands name and a few other bits and pieces so said he will have to go back to office to check if he can take them later - said he will call back....its not nice having a sheriff call to your door I'd imagine.  
She really wants to make a clean start as its been dragging on for years and the whole thing is very stressful. Solictor letters going back and forth etc.  Judge made the order but it was always made clear to the creditor that there was no money so don't know why they kept persuing it....Again thanks for your advice - I will pass it onto her.


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## Jim2007 (20 Jan 2014)

They own a house which is debt free, a car etc.... and yet they can not afford to pay of the debt... I would fully expect that the creditor will do everything possible to collect this!

If it were me, I would start bankruptcy proceedings...


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## partnership (20 Jan 2014)

I also have difficulty with people owing money and yet living in a debt free house.  Is the house in both their names?  If so then it is an asset.  People seem happy enough to be married and live jointly on money provided by one person or share windfalls but when debt is involved they don't seem to share the burden.  I think people have lost their sense or moral responsibility.  How was the debt incurred - did the husband benefit from it?


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## Bronte (21 Jan 2014)

merid said:


> Sheriff called and looked at tax book of car and saw it was in husbands name and a few other bits and pieces so said he will have to go back to office to check if he can take them later


 
What bits and pieces did he look at?  Sounds like a bit of a fishing exercise by the Sheriff.  

Does she own or part own the family home?


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## Billo (21 Jan 2014)

merid said:


> Hi,
> 
> 
> The debt is quiet small compared to what I have been reading here.    I think it around 40K which she has no hope of paying.
> ...



Would she not have been better off paying off some of the debt instead of going down the legal route ? It looks to me like she (or the husband) because of bad blood whatever that means do not really want to pay off the debt.


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## merid (21 Jan 2014)

OP here again.  Thanks for all the input.  Like lots of disputes in hindsight it should have been settled years ago but it dragged on - both side dug their heals in.  The original dispute goes back over 10 years I reckon at least.  Basically my cousin purchased a house and sold it a couple of years later.  All above board - a standard house sale.  We are talking pre celtic tiger so no profit on the house but everyone was happy.  Until my cousin for a letter from the buyers a couple of years after after sale of the house to say there was a problem with part of the site i.e. I think the garage was built on ground that was not in the title deeds but belonged to someone else so the whole thing was very messy.  Like a lot things my cousin ignored them as for as far as she was concerned both sides solicitors were happen with the sale at the time....roll on years of letters from solicitors back and forth over the years and the house buyer looking for compensation it finally went to court believe it or not after 10 plus years after the sale.  Cousin somehow ordered to pay compensation hence the current judgement....
That's just a little background.  There is probably lots more to it and I only get to hear one side of the story.
I know there is the argument that she is mortgage free but she or her husband just don't have the money and the way they see it is that this thing has already cost them thousands and are just fed out of it.  In fairness I can see both arguments so I just suggested the PIP route.  At least it will only cost her an initial consultancy fee for advice.
Ignoring the fact that of course she should pay up what is due what is the best alternative as that is not going to happen - bankrupty or let the sheriffs actions run its course?


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## 44brendan (21 Jan 2014)

" I only get to hear one side of the story".
Absolutely you do. It makes no sense whatsoever based on the information given. There is more to this than the summary given by you as a court would not grant a subsequent decision on a house sale that completed successfully 10 years earlier. Judgement was subsequently been obtained against both her and her husband and will now have to be dealt with. There is likely to be far more to this story than meets the eye!!


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## merid (21 Jan 2014)

Its just that I read thread after thread here about people considering going to the UK for bankrupty and people give there opinion and advice.  These people have a responsibility for there debts but a lot of people seem to ignore that.  I'm listening a radio presenter every morning who had a debt of 3million with AIB wiped by going to wales.
I appreciate that there is probably lots more to my cousins story but on the basis she is not going to pay I was just looking for options.


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## 44brendan (21 Jan 2014)

There only appears to be one significant debt here and the court jusgement is in the names of both parties. Bankruptcy would not be a suitable option and other insolvency would depend on income and other debts. Of course I would recommend talking to a PIP. She will then be given clear advice as to her available options.


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## merid (3 Apr 2014)

Just an update for those why took time to respond.  Sheriff called and said nothing of value to take so he said case closed as far as he is concerned.
However last week a guy called Martin Foley of viper debt collection ([broken link removed]) arrived at door looking for goods to the value of the debt.
What legal standing has he to be on the property and to take goods.  I am aware of his background and the people involved are very concerned.  Surely he has no authority to enter premises.
Said he'd be back in a couple of days....not the kind of guy you want calling at your door.


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## Time (3 Apr 2014)

Gardaí need to be aware of this.

Mr Foley has no lawful authority to enter property or to seize goods.

It says a lot about the creditor if this is how low they wish to stoop to.


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