# Credit Union Debt: Instalment order and statement of means.



## Christinexxx

I got an installment order from my credit union asking me to appear in court and fill out a statement of means. 

They are making an installment order for the sum of €30/weekly. I have since rang their solicitor and offered to pay €20/weekly as it is all I can afford but this has been refused. 

I am currently on social welfare payments and have been for over 1 year now. 

Only recently have I been informed that a judgement was made in May last year and a letter was sent out which I did not receive.

But since that judgement I have paid approx €3,000 out of my shares to clear off my interest and informed the credit union that I was on social welfare. They then asked me to pay weekly installments of €50 (49 of which paid off my interest). 

Nothing has come off my loan due to this and I obviously could not afford to keep up the repayments. 

I am due to be in court in 2 weeks time. 

What I am looking to know is if I need a solicitor and if I would be entitled to free legal aid? And what judgement is likely to be made? 

Any advice appreciated.


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## Mr. C.J.H.

*Re: Credit Union Debt*

Okay, you do not need a solicitor for this and no legal aid is not provided for Instalment Orders. www.flac.ie have free legal advice centres who will be able to advise generally. 

Most importantly you need to spend some time carefully completing the Statement of Means and then you must file it with the local District Court Office and then send another copy to the credit union's solicitor. Next you must present yourself to Court on the day. When your case is called identify yourself and approach the front of the Court, the solicitor for the credit union will outline to the Court what they are seeking i.e. €30 per week and the total amount owed. You will then have an opportunity to tell the Judge that you are in receipt of Social Welfare and that you cannot afford to pay that. 

The Judge will then make a decision based on what he thinks you can afford and orders that you pay that amount. Judges have great sympathy for people who bother to turn up to court and make thier case. Most Judges are usually quite reasonable and will not impose an Instalment Order that you cannot afford, they will realise that you have tp pay for food, bills, esb, and other essentials too.

I'm a solicitor and I regularly seek Instalment Orders in the District Court against individuals and in my experience Judges do not like granting Instalment Orders against people on Social Welfare, but it will all depend on what the Judge feels you can afford based on your income/assets v your other liabilities and outgoings. Whilst nobody can second guess what will happen on the day, i would have thought that an Instalment Order of €120 per month is on the high side and the Credit Union would be lucky to get that. In fact, I recall a case recently where I didn't even get an Instalment Order for €5 per week!! So nil desperandum and good luck..


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## number7

*Re: Credit Union Debt*

+1
Excellent advice

Also make sure you point out to the Judge that you have engaged with the cu throughout and that had they been in anyway reasonable in their demands that court time would not be wasted. You could also tell him that you offered tio pay €20 per week but that they refused that in favour of a court visit for an additional €10 a week.

Be confident in court and above all turn up.


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## bond-007

*Re: Credit Union Debt: Installment order and statement of means.*

I would echo what Mr CJH said.

Turn up and present your case as best you can. For a person on SW I seriously doubt a judge would entertain such a request.


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## Christinexxx

*Re: Credit Union Debt: Installment order and statement of means.*

Thats great advice. Thanks for the response. Will let you all know how it goes.Thanks again.


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## basshunter

*Re: Credit Union Debt: Installment order and statement of means.*

hi im currently out of work and as my age is not doing me any favors finding suitable work is now becomming even more difficult. i had a loan with a credit union i fell short of not been able to pay every contact i made with them went ignored they proceeded to seek a judgment against me with knowelledge and without informing me, before i knew anything i recieved a letter from their solictor informing me of the court judgement that they had obtained, in the mean time i had debt collectors calling to my door pertaining to be under the instruction of the credit union. i have made numurous attempts to communicate with them and they will not talk to me. so as i was not in a position to pay what they were demanding from me which was 80.00pw and the debt collector calling to my house 
i re calucated my income and out goings and i made them an offer that i knew i could afford again i recieved a letter from their solictor demanding what the credit union was looking for i made the offer to the solictor as their client had not responded to me. following the communication with their solictor i recieved a register letter that they were seeking an installment order against me, so i left it to the court the judge made an order of 20.00pm, i sought to obtain the credit unions bank details so i could set up a standing order with them again they refuse to talk to me and as of resent ive recieved a treathing letter from their solictor that they will go back to court and have me comitted for non payment.
so as the credit union has not spoken to me i communicated trough their solictor outlining what i sought from their client and was awaiting same now their solictor will not corospond or answer my communications with them. now in the last few days ive recieved a letter from a debt colloctor acting on behalf of same credit union looking for payment of money i know notting about, and in the mean time im incurring costs in relation to their free use of debt collection companies and their solictor's fees.
can any body tell me what i can do to bring this matter to a final conclusion can i have the matter reentered into court im at my wits end with this whole thing.


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## heretohelp

*Re: Credit Union Debt: Installment order and statement of means.*

Basshunter,
Have you been to MABS? you must be feeling very low at the moment with all this.


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## Wishes

*Re: Credit Union Debt: Installment order and statement of means.*

Isn't it amusing that the CU are working along side MABS setting up current accounts to allow people with financial difficulty pay their debtors.  Yet they are incapable of listening to Basshunter's financial situation.  This just doesn't make sense to me.


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## bond-007

*Re: Credit Union Debt: Installment order and statement of means.*

Some credit unions are run very badly, and sadly Basshunter is dealing with such an organisation.


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## Wishes

*Re: Credit Union Debt: Installment order and statement of means.*

I second that.  They seem to be using debt collectors lately.  I've heard this from other people too.  Wonder what their share holders think of them wasting money on collections people knowing full well that it is very unlikely they will receive full payment in these cases.

Bashunter, you should keep paying the Eur 20 per month.  If this goes to court it will prove that you are paying what you can afford.


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## Christinexxx

That sounds ridiculous... My problem was sorted out simply by a court appearance. An installment order was made for 20euro per week which I lodge in to the credit union every week. There has been no problems since my last posting. I would definitely continue to lodge your 20euro per month and keep receipts of each payment. Have you consulted a solicitor regarding these threatening letters and lack of cooperation with the credit union? It sounds like the credit union you're dealing with are run very unprofessionally!


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## Financial_Al

Go to MABs, keep all correspondence with the CU and keep pay the same amount each week. I would also visit your local community welfare office and see are you entitle to any addition payments or benefits.


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## robbie1

*Once an installment order is in place, how does it affect your credit rating?*

I appreciate that this is a very old thread on Installment Orders, but it is very informative. My credit union, to whom I owe a certain amount of money borrowed to fund a family business, which is now liquidated, is offering me 2 choices regarding my borrowings… first choice they will extend the term of my loan out to 20 years, reduce my monthly repayments to c. €250 down from c. €350 (10 yr term loan), but even at this I cannot make the repayments, only just getting back to work etc. and the end cost of the loan will be huge! at an interest rate of over 7.5%, second choice…they take out an installment order on me, go to court and agree an amount I can pay (I have already offered to pay them €150/month) and that would be matter solved, but…how would this affect my credit rating, as I said previously we are only now just getting our feet back on the ground, and still have to sort out personal guarantees with the bank, post business liquidation, we have told the credit union that we can’t be seen to do some type of sweetheart deal with them and come to zero arrangement with the bank.
Please note I have been making regular payments into my loan account with the credit union and have kept an open communication channel with them, but the idea of an installment order frightens me, will I be “persona non grata” for ever more in the eyes of every financial institution?


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