# Is it worth taking legal action to collect just over 400 plus VAT ?



## rabbit (24 Jun 2006)

I am self-employed and a business I did a service for owes me just over 400, plus the vat.   He is refusing to pay.   Is it worth going to court over ? I am told it may cost me hundreds in legal fees and even then I may not get paid ?


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## gordongekko (24 Jun 2006)

you could try the small claims court it does not cost a lot. Do a search there are a few treads about the issue.


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## rabbit (24 Jun 2006)

I done a bit of research there but I gather the small claims court is for individual consumers suing businesses / suppliers of goods or services only.


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## z107 (24 Jun 2006)

From my own experience, the answer would be no.
Write it off as a bad debt.

The legal route could also take months or years. I'd just send a solicitor's letter and leave it at that.


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## CCOVICH (24 Jun 2006)

gordongekko said:
			
		

> you could try the small claims court it does not cost a lot. Do a search there are a few treads about the issue.



The Small Claims course cannot be used  in this situation

From 



> The procedure is not available for use by one 		  business person against another.





> Claims cannot be made in the Small Claims Court for *debts*, personal injuries or breach of 		  leasing agreements. The procedure is designed to deal with consumer claims up 		  to 2,000 euro.


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## Brendan Burgess (25 Jun 2006)

I think it would be very handy to have a guide to using the courts to collect debts. It would be very helpful for businesses to be able to chase small debts without using a solicitor. I gather that most solicitors are not intested in such work as it just does not pay. Whereas a supplier is stronly motivated to go after their own money.

I will suggest it to the Small Firms Association.

Brendan


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## ivorystraws (26 Jun 2006)

Hi Rabbit,

Try sending a registered letter outlining the situation and notify them as to the outstanding debt, mentioning further legal proceedings, if necessary. Thereafter, with no response, send a second registered letter (sent directly to top level within organisation) and if there is still no sign of payment, contact a debt collector regarding your debt. They will usually take a percentage of the debt recovered.

It's not the amount that's the issue here... it's the fact that they think they can get away with it that's really fustrating.


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## ubiquitous (26 Jun 2006)

At what point does it become worthwhile to use legal proceedings to recover a debt? €1,000? €2,000? €5,000? More?

Can anyone recommend a good debt collection agency?


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## Marion (12 Jul 2006)

This is an [broken link removed] that limits the amount of legal fees to €750. It is operated by the Bar Council. I'm just giving this link for information purpose. It probably would not be cost effective for the OP.

Marion


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## BobbyFowler (30 Aug 2006)

I'm in the same boat as Rabbit.  My average sale works out around 400-450 Euro.  I've had no joy at all in chasing money from several people who owe me money.  They don't even respond to Solicitors letters, of which several have been sent out.  I found myself getting too worked up over these outstanding amounts when the best thing is write them off & put your energies into making more money.  It can just get too frustrating.


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## reset5 (2 Sep 2006)

I can sympathise, I think a debt collector is best option, like that crowd intrum justitia. You probably are aware of this already, but they publish the stubbs gazette, which is basically a list of bad debt information. Obviously people/businesses don't want to find themselves in this so may respond to their attempts better. It is so frustrating when people think they can get away with this sort of thing.


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## liteweight (2 Sep 2006)

The Irish Trade Protection Association also performs a debt collection service and they publish a gazette. They are, or were in Park House, North Circular Road, Dublin 7.


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## Jiminie (8 Sep 2006)

I work for a debt collection agency. I wont mention the name coz that would be advertising!!!

If you want to ask me anything on the subject of debt collection just send me a PM.


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## rabbit (9 Sep 2006)

Thanks for all your replies.   Thanks also for your offer of help Jiminie, but I already engaged the services of my solicitor some weeks ago to start the legal process to recover the debt, and out of principle I am going to see it through.


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## sheena1 (10 Sep 2006)

Hope you get the € owed. I think guys like these rely on the fact that most people would write off the debt and so they get away with it and their credit rating remans unblemished. I wonder if the shoe was on the other foot what would happen? Make sure you stump them for your legal fees. Fair Play to you!


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## December (10 Sep 2006)

I would go to a solicitor rather than a debt collection agency.  Imo you will get results quicker and faster.


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