Practical guide to debt collection in Ireland

Foreign creditors have three primary routes to recover a commercial debt from an Irish debtor, and the best choice depends on whether the debt is disputed and where the creditor already holds a judgment.

1. Enforcement of an Italian or EU Judgment

Because both Italy and Ireland are EU member states, a final judgment obtained in Italy — including a decreto ingiuntivo (payment order) — is recognised in Ireland under EU Regulation 1215/2012 (Brussels I Recast). There is no need to retry the case on the merits; the creditor may proceed directly to enforcement in Ireland. This is particularly efficient when proceedings have already started in Italy.

2. European Payment Order (EPO)

The European Payment Order procedure (Regulation EC 1896/2006) is a uniform EU instrument for uncontested monetary claims. The creditor files Form A with the competent court, and if the debtor does not oppose within 30 days, the order becomes enforceable across all EU member states, including Ireland. No local presence is required. This is the recommended first step for straightforward unpaid invoices with documentary evidence.

3. Direct Legal Action in Ireland

If no prior judgment exists and the EPO is not suitable (for example, because the debt is likely to be contested), a creditor can initiate proceedings directly in the Irish courts. Two main procedures apply:

• Summary Summons: A streamlined procedure for liquidated (clearly quantifiable) claims. In the High Court, it covers amounts up to €75,000; smaller amounts are handled by the Circuit Court. If the debtor does not contest, judgment is entered relatively quickly.
• Ordinary Civil Bill: Used for higher-value or disputed claims. The process is more detailed and involves pleadings, discovery, and hearings — making it slower and more costly than the Summary Summons route.
  

Timeline depends heavily on whether the debt is contested. For an uncontested EPO, the process typically takes two to four months from filing to receiving the enforceable order. Enforcement of an existing Italian or EU judgment in Ireland can be equally swift, with local enforcement steps (such as bank attachment) following shortly after recognition. For disputed claims pursued via Ordinary Civil Bill, proceedings in the Irish courts can take one to three years, particularly in the High Court, where commercial lists can be congested.

According to the

Courts Service of Ireland, the commercial division of the High Court prioritises business disputes and can sometimes hear cases faster than general civil lists, but preparation and costs remain significant.

Yes. There is no restriction on foreign companies initiating legal proceedings in Ireland. A non-Irish creditor does not need to establish a local entity or appoint a resident agent simply to file a claim. However, engaging a qualified Irish solicitor is essential for navigating procedural rules, preparing documents correctly, and attending hearings.

Under the European Small Claims Procedure (for claims up to €5,000), a foreign creditor can pursue an Irish debtor without needing to appear in court at all — the process is largely documentary.

For larger or more complex matters, Ursusnetwork coordinates directly with local Irish solicitors who specialise in commercial debt recovery, ensuring continuity from the demand letter through to enforcement.

If the Irish debtor is insolvent or has no seizable assets, enforcement may be impractical regardless of the legal outcome. Before initiating proceedings, a preliminary financial investigation of the debtor is strongly advisable.

Ursusnetwork conducts asset and solvency checks as part of its pre-litigation assessment. If the debtor is actively trading but refusing to pay, enforcement mechanisms include:

• Attachment of bank accounts (garnishee orders)
• Execution against goods (seizure of movable property)
• Judgment mortgage over Irish real property
• Examination of the debtor's means by a court officer

If the debtor is insolvent, creditors may lodge a proof of debt in examinership or liquidation proceedings under the Companies Act 2014. The Companies Registration Office Ireland provides public records on company status, directors, and filings — a useful first step in any asset investigation.

Ursusnetwork is a specialist platform for international commercial debt recovery, active in over 60 countries including Ireland. When a foreign creditor contacts Ursusnetwork about an Irish debtor, the team:

• Assesses the debtor's solvency and asset position before recommending action
• Drafts a formal demand letter via a qualified local solicitor
• Identifies the most efficient legal instrument: EPO, Italian judgment enforcement, or direct Irish proceedings
• Manages the full procedure through to enforcement, keeping the creditor informed at each stage

Need help recovering a debt from an Irish company? Get in touch and obtain a free quotation for your case.

Q: Does Ireland apply the EU Late Payment Directive?

A: Yes. Ireland transposed EU Directive 2011/7/EU on combating late payment in commercial transactions. Statutory interest on overdue B2B invoices accrues at 8 percentage points above the ECB reference rate, and creditors are entitled to a flat compensation fee of €40 per late invoice. These amounts are automatically enforceable without a court order.

Q: What is the statute of limitations for commercial debts in Ireland?

A: Under the Statute of Limitations 1957, the general limitation period for contract-based debts in Ireland is six years from the date the debt became due. Once this period expires, the claim is time-barred. Sending a formal demand letter or receiving a partial payment can restart the clock in some circumstances.

Q: Can I use an Italian decreto ingiuntivo to freeze an Irish bank account?

A: A final, enforceable Italian payment order can be used as the basis for enforcement in Ireland under Brussels I Recast. However, freezing an account (a Mareva-type injunction) requires a separate application to the Irish High Court demonstrating urgency and risk of dissipation of assets. This is a more involved step and requires local legal representation.

Q: Is mediation mandatory before suing in Ireland?

A: Mediation is not mandatory for most commercial debt disputes in Ireland, but the Mediation Act 2017 encourages parties to consider it. Solicitors are required to advise clients about mediation before issuing proceedings. Refusing mediation without good reason can affect the court's costs order.

Q: What happens if the Irish debtor is being dissolved or struck off?

A: A company being struck off the Companies Register can be restored within a certain period. Creditors can object to dissolution or apply for restoration. If the company has already been dissolved, any assets vest in the Minister for Public Expenditure as bona vacantia. Acting quickly to register a judgment before dissolution completes is critical.