Payment of debt where no means?

ChandlerBing

Just as background, I know someone in difficulty with repaying a debt and getting very distressed regarding dealing with the situation. They owe over €16k that was jointly with their husband, now deceased since judgment obtained, and she is now existing purely on a social welfare widow's pension with no savings. An offer was made to pay some of the debt which was refused, and that money had since to be spent on funeral and burial expenses which, you can imagine, has been very stressful for the person concerned.

Without asking for advice for this particular situation and breaching forum rules, I'm wondering what is the process for going to court to provide statement of means, highlight that the money just isn't there to pay, or reach an agreement of X amount per week to repay? Is there a chain of events that must take place?

I would assume that the creditor must initiate court proceedings to enforce the debt? However, if creditor has not done this, what avenues are open to someone?

The stress of this hanging over anyone must be unbearable, and I have found it highly upsetting hearing this person's story, considering they have been trying to grieve, whilst also trying to deal with this situation...

Reloc8

Chain of events (presuming parties can't agree anything) :-

- creditor initiates proceedings
- case goes to court, perhaps defended perhaps not.
- presume creditor gets order for payment.
- judgment is now enforceable against the debtor, or property they own. This can be done in a number of ways.
- creditor has the option of seeking an installments order for payment by installments. Debtor can also ask the judge to make this order.

If creditor has not commenced proceedings, debtor has no option to sort of pre-emptively commence something and get an installments order.

Creditor is not obliged to accept less, or accept installments.

ChandlerBing

Reloc8 thanks for your reply, much appreciated.

I know that an offer to their creditor does not have to be accepted, and I also feel any offer for instalments will go unheeded.

However, at the end of the day I feel that having it go on endlessly without resolution is not good for this person and is causing irreperable damage and she can see no end to it at the moment. Money owed is money owed, but when this person's financial situation has altered so dramatically in the two years since it started, I can see how she feels so helpless .

Reloc8

No problem.

Being in debt is a lousy situation and a source of stress and upset. Unfortunately for the debtor, the person to whom money is owed is entitled to be repaid. Its difficult to see how this could be otherwise.

Your friend should get in contact with MABS - they can often help to work something out with a creditor. What the creditor will want to see is that the debtor is prioritising repayments and that the amount is being reduced. This to them is worth more/better than spending money on legal fees to get an Order which might never be discharged. A third party intervening, like MABS, often is of great assistance in negotiating.

Our man in Havana

You can't get blood out of a stone. A point that is lost on many creditors these days.