Irish investors who ventured into the French real estate market in the early 2000s through sale and leaseback schemes are facing a significant challenge.
The French properties purchased under these schemes were expected to generate consistent rental income, managed by local companies. However, failures by these management companies to fulfil their responsibilities have led to a lack of income, and now, the banks that financed these purchases are moving to recover unpaid loans.
If you’ve been affected by failed property management in France and are now facing financial difficulties or legal actions from banks, Anthony Joyce & Co Solicitors is here to help. As experts in financial litigation and bankruptcy, we are committed to defending your rights and providing the guidance you need to navigate these challenging cross-jurisdictional issues.
The Problem at Hand
During the early 2000s, numerous Irish investors were attracted to the concept of owning holiday properties in France. These properties, often part of a holiday park, were promoted as a promising source of income.
The plan was that these properties would be purchased through a sale and leaseback arrangement and run on the ground by local management companies, many of which have since failed to uphold their end of the agreement.
With the banks that financed these purchases now taking legal action to recover owed debts, we have seen a rising trend of French banks securing judgments against the Irish investors defaulting on these loans. The banks are now attempting to enforce these French judgements in Ireland.
Cross-Border Enforcement Process
Here’s what this cross-border enforcement process involves, and what the potential actions you could face are:
- Approval by the High Court: Firstly, the French judgment needs to be recognised and accepted by the Master of the High Court in Ireland. This is the step that allows the Irish enforcement process to begin.
- Enforcement Options: Once the judgment is approved, there are several enforcement measures available:
- Publish the Judgment: The judgement is published in Irish official gazettes such as the Oifigiúl or Stubbs Gazette, which is a formal notification of the debt.
- Sheriff’s Involvement: The judgment can be sent to the Sheriff, who may then attempt to seize your assets to recover the debt.
- Examination Order: You may be summoned to court to be cross-examined about your assets or surplus income. This could lead to an installment order where you’re required to pay a set amount each month, or a garnishee order, where funds are taken directly from your income or bank accounts.
- Judgment Mortgage: The judgment can be registered against any properties you own in Ireland, which may impact your ability to sell or remortgage those properties in the future.
- Bankruptcy: In cases where debts are overwhelming and other measures fail, bankruptcy may be pursued as a last resort.
What’s Next?
If you’ve received correspondence from a bank regarding the enforcement of a French judgment against you, it’s essential that you act swiftly. Here’s how we can help:
- Legal Representation: The first step is to engage legal help as soon as you receive any notice from the bank. At Anthony Joyce & Co. Solicitors, we’re ready to examine your case immediately and provide the urgent assistance you need.
- Challenge the Enforcement: If there’s an attempt by the bank to have the French judgment recognised by the Master of the High Court in Ireland, we can help you challenge it. For example:
- Defence of Delay: We can argue that delays in pursuing the debt might invalidate the enforcement.
- Procedural Errors: Any errors in how the judgment was handled could also provide grounds for challenge.
- Utilise Personal Insolvency: If the debt becomes overwhelming, we can guide you through the personal insolvency process to possibly restructure or even write off the debt. Our expertise in this area can guide you through each step with clarity.
At every stage of your case, Anthony Joyce & Co Solicitors is committed to providing proactive and tailored legal solutions.
Contact us today to discuss your situation and explore the best strategies to challenge the enforcement of foreign judgments and protect your assets.
