Debt chasing doubles amid recession

The number of people chasing debt through the courts during the economic downturn has doubled, it emerged today.

The Court Service revealed cases involving business and commercial matters soared last year, with 759 applications for home repossessions – more than twice as many as last year.

Information officer Helen Priestley said the downturn has resulted in a huge increase in all kinds of debt- related cases.

“That is from companies who are in trouble seeking the protection of the court, to creditors who are seeking to recover debt in all the various ways,” said Ms Priestley.

“They are either looking for judgment, seeking the possession of property, and then once they have got judgments, they are seeking to enforce those judgments.

“And indications are that in 2009 there has been no let down and if anything there is going to be an increase,” she warned.

In the criminal courts, the annual report revealed:

:: More than half a million criminal cases were dealt with, with €26m collected in fines and 23,000 prison sentences imposed.

:: More than 3,000 children were accused of 8,922 crimes, with 708 youngsters handed a detention order.

:: Detection for serious crimes rose, with cases for firearms, drug offences, assault, theft and robbery up.

:: A total of 51 murder cases were listed, with 35 disposed of, securing 28 convictions.

:: Of 72 rape cases, 41 were convicted.

:: Less than 2% of all sentences were appealed by the DPP

:: Elsewhere judges granted 4,214 couples a divorce, with 70% of separations brought by wives.

:: 4,145 small claims were lodged, with the biggest increase in complaints against dry cleaners.

Figures also showed more than 36,000 civil cases were lodged at the Circuit Court, of which 60% related to breach of contract and debt collection.

And a further 22,861 were brought before the High Court, with a surge in action relating to recovery of debt and commercial concerns.

A total of 238 repossession orders were granted, compared to 108 in 2007, and 3,808 cases related to recovery of debt.

There were more than 200 applications to wind up a company, 41 to appointment of an examiner, and eight bankruptcies.

The credit crisis is also taking its toll on the hotel and pub trade, with licence applications down by 40% and 33% respectively.

Elsewhere there were twice as many applications to the High Court about the work or conduct of 60 solicitors.

The Chief Justice, John L Murray, said societal changes will continue to have an impact such as population growth and the diversity within it.

“Economic expansion over the last decade or so has substantially altered the depth and breadth of the Irish economy so that there has been a substantial growth in the volume of cases with serious commercial interests at stake,” he said.

“Notwithstanding the downturn in the economy, that is likely to continue to be the case although that downturn will also bring other challenges arising from cases generated by its consequences.”

The criminal courts are due to move in to its new complex at the gates of the Phoenix Park within budget and ahead of schedule in November.