# Court order against me, but its going to take years to repay?



## deltaray (28 Aug 2011)

Hi there, just looking for a little clarification.

I recently was taken to court by a finance company for a car repossession. After the repossesion of the vehicle and the todate legal costs they billed me for a total just over €10,000.

The court awarded them the payout with annual inerest of 8% and I filled out a form to state that I was unemployed and had limited means.  The accepted by offer of €30 per month of my amount owed.

However I am unsure as to what happens next.  I have met my repayments since the date of the court order but have just realised I will never pay this money back.

The Interest on the debt is around €800 per year, however I am only paying € 360 per year which means my debt grows by around €440 per year!

As I understand it I can escape this lifetime of debt by using the 10 yr statuate barred rule?  But if I am correct in this it seems a pointless exercise paying €30 per month for a debt that grows every year!

Is there any easy way out of this?  It seems pointless and silly paying €30 per year for a debt that will never get repaid and continues to grow for the next 10 years!  

Is ther some kind of arrangement I can meet with the finance company where they will reduce the debt to something more realistic without interest being added on?  

I have considered declaring bankruptcy but I see Irish law is so outdated that even this isnt an option here, and I cant see the economy picking up over the next 10 years offering me good paid employment again enabling me to meet my obligations.

Thanks for any help and advice.
Any Advice would be appreciated.


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## Time (28 Aug 2011)

You would only have to pay the €30 a month for 12 years. I know it is a joke. 

You can try and reason with them. Banks just love these orders as they can eek out a small bit of money for a long period whilst dangling the threat of prison if they don't get paid.


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## deltaray (28 Aug 2011)

Time said:


> You would only have to pay the €30 a month for 12 years. I know it is a joke.
> 
> You can try and reason with them. Banks just love these orders as they can eek out a small bit of money for a long period whilst dangling the threat of prison if they don't get paid.


 
Thanks Time for getting back to me.

It really is a crazy system and I wish the government or EU  would get their finger out and sort out the bankruptcy laws.

What gets me is Im paying for a car I dont have have and im stuck with this debt for 12 years, but i guess im lucky its just a car and not a house.

Thanks again.


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## ontour (28 Aug 2011)

Simpsons said:


> I cant see the economy picking up over the next 10 years offering me good paid employment again enabling me to meet my obligations.



You should be more positive about obtaining employment in that timeframe, plenty of time to change your skill-set to an area where there is a skills shortage.


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## deltaray (28 Aug 2011)

ontour said:


> You should be more positive about obtaining employment in that timeframe, plenty of time to change your skill-set to an area where there is a skills shortage.


 

Very true, but in all honesty our new government seem to be only capable of blameing everything on the last government.

When you have sent out hundreds of CV`s and fail to get any interviews despite never having a problem in thr past then you will realise this country is totally banjacked.

The only thing on offer these days are WPP, Interships and FAS courses, nothing that would really improve anyones skill set, just slave labour.

Seriously considering leaving this country and heading somewhere else, nothing here for my generation anymore and im only 26.


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## ontour (28 Aug 2011)

There are thousands of jobs in IT, hotels and restaurants can't get chefs - certain sectors have jobs while other definitely are 'banjaxed'.

At 26 emigration should not be viewed as a negative outcome.  It suits some people and not others.  A few years of seeing far flung places may be something that you enjoy.


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## horusd (28 Aug 2011)

ontour said:


> You should be more positive about obtaining employment in that timeframe, plenty of time to change your skill-set to an area where there is a skills shortage.


 
+1. You cannot forecast that long in advance, ie ten years. We have high unemployment,but the flip-side of 14% unemployment is 86 % *employment*. 

You can request a freeze on interest rates, but it would be just that, a request. The bank are entitled to expect you to resume normal repayments should you get a job, and to charge an appropriate interest rate. You entered into a contract and a court adjudicated on it, presumably fairly to both you and the  bank.


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## terrontress (31 Aug 2011)

Do debts not become statute barred if there are no attempts to collect and no recognition of debt by the debtor?

If you are paying away over ten years, it does not suddenly become void because ten years have passed. If that were the cases then all mortgages would only have been ten years in repayment period.


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## scwazrh (31 Aug 2011)

Can you tell us what finance company it was?


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## 44brendan (31 Aug 2011)

By taking this issue to Court the Finance Company will have obtained a Court Judgement against you. On foot of that judgement they would have progressed for an Installment Order. This is the order for you to pay €30 per month. If your financial circumstances have changed you can appeal the amount of the payment. However if you stop paying the Finance Company can proceed for a committal order. I.e. ask to Court to jail you for failing to comply with the order. As mentioned earlier in the response you have the option of approaching the finance company and agreeing a lump sum settlement. If it is anything reasonable they will probably accept it. Best approach may be to do this through a solicitor. Solicitors letter tends to get a better response.


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## johnnygman (31 Aug 2011)

Solicitor's letter will only add more cost and will not help.

I previously worked for a company and settled many debts with debtors in the past and its the size of the offer, source of the funds and the current repayment capacity that will dictate the company accepting or not accepting the offer.

My advice to you is if you can raise the funds, be it from family or whatever, state that this is the case on the offer - ie: you MAY be able to raise the funds, start at somewhere around 10% of total debt and see if they play ball, if not you can always if possible increase offer marginally if they are willing to negotiate. Most companies right now want cash and i'd be surprised if you could not do a deal here in some shape or form. This debt is costing them in the long run in terms of admin and so on and it's in everyones interest to have it settled.


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