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Debtors – Those Who Pursue You for Payment Must Follow the Rules

Debtors have the same legal rights as anybody else and are entitled to expect that those who pursue them for payment follow procedural requirements to the letter. In one case in which that did not happen, the High Court overturned a statutory demand for over Euros 6.3 million.

A financier had personally guaranteed bank loans made to a property company in respect of a development site in Ireland that had been purchased for Euros 5 million. Following the 2008 financial crisis and the collapse of the Irish property market, the land was sold for Euros 172,000, about 3.4 per cent of the purchase price.

A debt recovery company subsequently purported to take an assignment of the loans and issued a statutory demand against the financier. In setting it aside, however, the Court found, amongst other things, that the company had failed to provide sufficient evidence to establish its status as assignee of the debt. The company had also not presented adequate evidence to prove the amount of the debt and it was strongly arguable that its claim was in any event statute barred, the demand having been issued outside the six-year time limit that applies to such matters.

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