Credit union clear to chase €203k debt

A credit union has obtained a High Court order preventing an extension of a solicitor’s insolvency protection period from applying to it in its efforts to recover a €203,000 debt from him.

Clones Credit Union in Cavan objected to a 40-day extension of of a protection certificate for Fergal McManus, from Cavan Town.

A protection certificate affords comprehensive protection to a debtor from all action by a creditor and, during its currency, a creditor may not commence or continue judgment enforcement proceedings against the debtor.

Ms Justice Marie Baker yesterday ruled the credit union was entitled to an order that the protection certificate for Mr McManus should not apply to it.

The credit union argued it would suffer irreparable loss if this happened and claimed Mr McManus had not disclosed information concerning his home, in particular a €120,000 loan from his mother-in-law and his own parents which was secured on that property in an effort to deal with his debts.

Mr McManus, of Santa Maria Alacken, Cavan, said what he did in relation to that loan was in accordance with law and he did not in any way try to put assets beyond reach of creditors.

Ms Justice Baker said the credit union’s main complaint related to transactions surrounding the home of Mr McManus which he owns jointly with his wife.