# SoleTrader business failing: facing a judgement from a creditor for 75k in high court



## AbbeyRoad1 (24 Jul 2008)

My sole-trader business is failing and I am facing a judgement from a creditor for 75k in the high Court.

Assuming my private home is safe my only other asset is some land, valued at 200k with a loan attaching of 50k. The bank have first call on this property.

can anyone advise as to the likelihood the creditor could eventually force the sale of the land?


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## Ravima (24 Jul 2008)

*Re: How much at risk am I?*

whatever about forcing a sale, they can put a Judgement Mortgage on the land and I am not sure about hte PDH. This means that in the event of a future sale, they have a call on the money before you do. Also, this judgement mortgage attracts interest per annum as well


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## Brendan Burgess (24 Jul 2008)

*Re: How much at risk am I?*

Do you owe the money? 

If so, why don't you sell the property and pay what you own and avoid legal costs as well? 

brendan


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## AbbeyRoad1 (25 Jul 2008)

*Re: How much at risk am I?*

Thank you.

Unfortunately I owe substantially more than 75k including a debt to the Revenue.

My concern about a "forced sale" is not to avoid my responsibilities its the notion that I will not get anywhere near its value.


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## ClubMan (25 Jul 2008)

*Re: How much at risk am I?*

Why not preempt that by getting it on the market yourself now?


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## Thrifty (25 Jul 2008)

*Re: How much at risk am I?*

Agree with Clubman and i'd then sort out the Revenue first - far more serious consequenses owing them.


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## murphaph (25 Jul 2008)

*Re: How much at risk am I?*

Hi Abbey Road,
Sorry to hear your business is failing. Why has it gone all the way to the High Court? A judgement can be obtained in the Circuit Court so did you fight the case against you? Be careful about adding significant legal bills that do nothing but make barristers richer. As clubman says...if you owe the money (especially to revenue) then get working on getting the best price for your land. Your home could technically be sold by order of the court but in this country that's exceedingly rare (but maybe of the home is a 20 bed mansion the court wouldn't have so much sympathy!). Best of luck to you.


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## bond-007 (26 Jul 2008)

*Re: How much at risk am I?*

If the debt is over €38,000 the case must be heard by the High Court. Circuit court only goes up to €38,000.


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## murphaph (26 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

Oh, didn't know that. Thanks James. ;-)


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## MandaC (27 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

We got a judgement mortgage against one of our clients.  We forgot about it and one day we got a call out of the blue from him saying that he owed a few bob and wanted to settle up.  Their was more than ours against it and he was just trying to get us to settle for less than we were owed.

It took about three years, but we got the full amount.


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## mercman (27 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

Barristers are not allowed to sue for unpaid fees. They carry Bad Debts as well !!


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## Stifster (29 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

Abbey, are you assuming your private home is safe or are you asking the posters to assume that it is safe. If it is in your name (even if jointly owned, family home or whatever) a judgment mortgage can be registered against it.


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## bond-007 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

It is safe in that they cannot evict you over this debt.


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## mf1 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*



bond-007 said:


> It is safe in that they cannot evict you over this debt.



No, it is absolutely not safe. 

From what we have been told, OP has substantial debts - 75K to a creditor, 50K charge on the land, "substantially more debt than the 75K", a debt to Revenue. On the face of it, OP has a piece of land worth 200K and a private home. So he is not insolvent, but unless he can raise the funds to discharge his debts, he is looking at judgments and, possibly, judgment mortgages. 

As the credit crisis gets worse in this country, creditors, including Banks, will be under increasing pressure to bring down their debt portfolios and I believe they will increasingly force the sale of properties to recover their debts. 

I think there is a culture of "family home is inviolable" and its worrying because the sale of the family home is often the only way that people can pay off their debts. 

I also believe that the Courts hitherto reluctance to issue repossession orders will go as it becomes obvious that debts must be paid. 

mf


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## bond-007 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

Why don't creditors use bankruptcy against debtors?


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## j26 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*



bond-007 said:


> Why don't creditors use bankruptcy against debtors?



I thought it was the debtor declared bankruptcy, not the creditors.


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## bond-007 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

The creditors can force bankruptcy.


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## mf1 (30 Jul 2008)

*Re: SoleTrader business failing: facing a judgement from a creditor for 75k in high c*

Like most draconian remedies, some "seem" worse than others. So, I'd say that creditors would prefer to try and force the debtor to resolve their own issues e.g. debtor sells own property and pays debt rather than the creditor incurring the expense of forcing the debtors hand. Bankruptcy is not a popular (?) choice of enforcement - judgment mortgage is very much simpler. Also, Bankruptcy has a devastating effect on a Bankrupt  ( cannot deal with their own assets - everything  must go through the Official Assignee) - judgment mortgage /eviction is horrible but, at least, hopefully, at the end the debtor still has the capacity to start up again.   

Finally, a lot of people bury their head when it comes to serious debt - it is something that creeps up on them and then becomes to big too handle - so they don't. This leads to the inevitable stronger enforcement methods by the creditors. 

I think everyone knows that if in debt, get help and advice on how best to deal with it. Then deal with it. Not everyone  does deal with it. 


mf


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