Your MoneyQ&A

Will a recession-era judgment come back to haunt me?

Man inheriting from parents worries about outstanding debt relating to vehicles seized in post-financial crash slump

It seems unlikely that the banks can, or will, pursue you now over a debt dating back to the recession of the late 2000s. Photograph: iStock
It seems unlikely that the banks can, or will, pursue you now over a debt dating back to the recession of the late 2000s. Photograph: iStock
Dominic Coyle's picture
Dominic Coyle
Tue Oct 22 2024 - 05:00

My two sisters and I are due to inherit our parents’ house, which will be sold and funds shared equally. The house is valued at around €300,000, so it is under the tax threshold.

My concern is that I have a couple of outstanding bank judgments against me which date back to the recession, after the financial crash, when a van and a jeep were taken back by the bank. I wasn’t in a position to clear the outstanding balance after both sold at auction, so the banks put a judgment against my name.

My question is this: can that outstanding funds be taken from the inheritance to clear what I owe? I haven’t had any contract from the banks in years, but do have a mark against my name on the credit rating computer.

Mr IC

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It would certainly be a bummer to inherit from your parents only to find the banks pursuing you for satisfaction of an almost forgotten judgment. Whether there is any chance of it happening is down to when the judgments were made, and the banks concerned.

You say these debts relate to vehicles you had that were seized by the banks “back in the recession”. That could be any time between 2008 and 2014. Precisely when is relevant because, in Ireland, judgment remain in place for 12 years after they are granted.

So if your vehicles were repossessed, sold at auction and the subsequent judgment made in 2008, they would no longer be valid. However, if the judgments date back to 2013 or so, it may still be possible for the banks to pursue it.

While it is clearly still on your mind, in absolute terms I suspect the amount you owe is modest

But they will need the court’s permission to do so. Once six years have passed, a judgment cannot be “executed” – enforced – without the express permission of the court.

So even if the judgment is still in place, it is very likely that the lenders involved will have to seek permission to enforce it.

Whether they would do so is moot. First of all, a number of the banks in place back then no longer operate in the Irish market. If your loans were with one or more of these, it is very likely they will have been written off by now.

If you borrowed from one of the three remaining mainstream lenders – AIB, Bank of Ireland or PTSB – and they have not given up the ghost, they might still pursue you.

You can check where you stand by consulting the Central Credit Register. This is run by the Central Bank and replaces the Irish Credit Bureau, which you mention in your letter to me and which used to be owned by and run on behalf of the lenders.

You can apply online for a copy of your current credit report on this page at the central credit register website. You will need to provide a photo with signature – such as a passport or driving licence, plus proof of your address and proof of your personal public service (PPS) number.

A number of the banks in place back then no longer operate in the Irish market. If your loans were with one or more of these, it is very likely they will have been written off by now

If the judgments are still recorded, it is possible the lenders involved could go back to court and seek their execution. This can be done in several ways. The court can sanction the seizing of goods to the value of the debt; an instalment repayment order made by the court; an attachment order against your earnings where your employer diverts part of any earning to satisfy the judgment; a judgment mortgage against your home which would have to be paid off before it could be sold; a garnishee order where the inheritance or part of it would be diverted directly to meet the debt; the appointment of a receiver, or bankruptcy.

Frankly, I don’t think any of the above will happen. While it is clearly still on your mind and you could not pay it at the time, in absolute terms I suspect the amount you owe is modest and it will likely cost the bank more to pursue at this point than they will receive in its execution.

Still, for peace of mind, do check the central credit register.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or by email to dominic.coyle@irishtimes.com with a contact phone number. This column is a reader service and is not intended to replace professional advice

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